Corona has shaken up logistics relationships and fixed routines worldwide. An example? The recent closure of an entire Chinese port (Ningbo) due to one corona case. And now container prices have increased sixfold. SILS suspects that these prices will last for at least another 6 months. Brexit also appears to be a lasting game changer logistically.
As a result, companies risk not being able to fully benefit from the economic boom after corona because logistics, including the increasing lack of space for warehousing, is a stumbling block. Exciting times to which SILS responds as flexibly as possible, especially to the demand for (temporarily) more storage space. So, we recently opened a second warehouse in Amsterdam. Once again, we prove ourselves to be like a chameleon and be able to adapt flexibly if logistical circumstances, the market, or specific wishes of customers require this.
I would like to delve a little deeper into Brexit: parties from the UK who, in addition to their home market, also serve Europe are looking for a logistics partner on the continent to supply their markets here. Their reason? The many difficulties with customs. Cross dock is regularly the key concept for this and SILS increasingly provides this service for these clients. From the UK, these customers send us their already sold stock every week. We receive these in a consolidated form and then forward them directly to all their customers in Europe. In short, because of Brexit, SILS is more active than before with cross-docking and transhipment. We are now even working on a fixed linehaul (scheduled service) from the UK to the Netherlands, together with a partner. There are also more and more parties from the UK that are considering SILS for warehousing and order picking.
Stock increase is now the dominant logistics trend because clients currently cannot rely on the lead times from, for example, China to Europe. We see them building up stocks because of the temporary bottlenecks in the logistics chain. First ‘cash is king’, now we see ‘stock is king’. Especially with a view to the fourth quarter. Clients are now using this stock increase in exactly the right place as a strategic action to safeguard their stock levels in uncertain times. At the same time, however, we observe a more limited supply of storage capacity. Of course, we want to be able to continue to facilitate the growth of our customers. So SILS recently started using a second warehouse in Amsterdam. Added up, this again offers more space for storage in the short & medium term, intended to grow with our existing and new customers. Ideal for their local storage. This second warehouse gives us an extra capacity of eventually another 10,000 pallet places, bringing our total storage capacity to about 35,000 pallets.
We now serve one of our larger clients from this second location. We can mainly use the remaining extra capacity for new national and international customers. In the first place, of course, in our warehouse role, often as a European Distribution Center (EDC). But we can also provide temporary storage with this, for example by responding flexibly to the needs of (new) customers who themselves get stuck due to a lack of their own storage capacity, or due to a lack of warehouse capacity of their current logistics partner(s). With our extra storage capacity, we prevent companies from being unable to take advantage of the renewed economic growth after corona because logistics, and in particular the lack of warehousing, would be a stumbling block. SILS not only offers space for warehousing, but also in locations that are favourable for the European market.
I invite you to discuss your need for additional warehousing with SILS. Temporary or longer. From web shop to multinational. You are most welcome for maximum logistical stability in these uncertain times.