If you establish a transload/warehouse facility near the port, your drayage costs will be cheaper and transportation costs to LA customers will be less, but space and labor costs will be higher and you’ll deal with LA-area road congestion.
If you choose to locate in the Inland Empire region – a major hub for logistics activity 60 miles east of Los Angeles – your space and labor costs will be cheaper and facilities will be newer, but drayage and outbound transportation costs will increase because of the added distance from the port.
Download our white paper – Logistics Primer for Importers to Southern California Seaports – to learn more about optimal warehouse locations and other logistics challenges faced by importers to Southern California.
The right location choice for a West Coast warehouse will depend on the specifics of your business. The following “If/Then” chart can help you decide what’s best for you. There are many variables to be considered and the chart covers just a few.
There are about 1 billion square feet of California warehouse space from Bakersfield to the Mexico border and many are operated by third party logistics providers (3PLs). The right 3PL partner can do a detailed analysis to determine the optimal West Coast warehouse location for your business.