Florida Logistics Industry Thrives in the Face of Supply Chain Disruptions in 2023

Since the pandemic started, great problems with inflation and changes in all industry types were predicted. In the post-pandemic years, more precisely, in 2022, inflation reached its highest point. Even though by the end of 2022 the situation on the market and the global economy started to improve again, the consequences are still visible, and it will stay that way for quite some time, as the experts forecast. The biggest turn happened when it comes to prices. They’ve gone up in every sphere of our lives, including the food market, real estate, and the moving industry. Although there are some of the best Florida cities for real estate investing, the situation in other parts is not promising. Another problem are supply chain disruptions that happen globally, and the United States is severely affected. However, the Florida logistics industry thrives. We will explain the reasons.

How did the supply chain disruptions affect the USA?

Even though a few years since we don’t struggle with Covid-19 have passed, we do still have to face its consequences. As we have already said, supply change disruptions are one of those consequences. During the pandemic years, the production of goods and offers of some services were reduced. In some areas or some fields, production completely stopped. Although in 2022 and 2023 the situation started to improve, it is still not easy to regain the disrupted balance. On the other hand, some markets, such as the moving market, haven’t been severely influenced, since people used the situation and the working remotely opportunities to relocate. That is why Best Movers Florida was still one of the first choices for people to help them find some of the best moving companies around.

A seaport during the sunset
Some of the ports in Florida are getting more storage capacity

Nevertheless, another problem that contributed to the chain supply disruptions was the improbability to guarantee wages and salaries. For that reason, many people left their jobs and they were made to do so. In the post-pandemic years, the demand for certain products and services increased. At the same time, the inability of some great markets to satisfy the increased demand left us with supply chain disruptions in 2023.

What is the main problem in the logistics industry?

Even though the changes in the Florida logistics industry were not negative, in general, this industry suffered great disruptions. Even before the pandemic, certain issues only became more serious as Covid-19 started and inflation hit afterward. One of the reasons why this area of business suffered great reduction is the fact that there were not that much long distance moves, therefore, the demand for freight transportation was low. Even though approximately 16 million people moved, the majority of those moves were local.

Another issue, maybe an even greater one, is a labor shortage and reduced wages. This has been problematic even before the inflation, but it reached its peak during the pandemic. There were 80,000 vacancies when it comes to the position of drivers, which affected all types of freight transportation, including air and sea transport. Considering all this, it would be logical to assume that the USA’s coastal states were all equally affected. Well, in 2023, Forida’s logistics industry thrives, even though the country and the world are facing serious supply chain disruptions.

Why does the Florida logistics industry thrive?

Florida is one of the states that is not affected by supply chain disruptions, especially not its logistics industry. Furthermore, it is in a better position than the majority of the states in the USA. Supply chain issues helped Florida cargo traffic increase. There were 112.5 million tons of cargo traffic handled from the ports in Florida. That is 6% more than in 2021. There are a few reasons for this:

  • It has a great location;
  • There are important ports;
  • The state is getting more and more residents each day;

When we take all of these facts into consideration, it should not come as a surprise that Florida is thriving, even though some other states face great challenges when it comes to the logistics industry.

Florida’s location helps its logistics industry thrive

Florida has a great location when it comes to trading. It is equally close to the north-south and east-west trading lanes. At the same time, there are seaports and airports. Another reason why Florida can use the supply chain disruptions to its advantage is the fact that it has great universities and IT colleges, so a lot of students go there. The location allows Florida to have a good connection with Latin America and the Caribbean nations, while the Miami airport has become one of the busiest when it comes to cargo transportation. Some facts show how important Florida for the logistics industry is. Namely, there are 5 deep-water ports, 20 commercial airports, 3 spaceports, and three launch sites. These are just to mention a few, but Florida’s economy and logistics industry hide much more important sites.

Two people carrying moving boxes
There were more local moves in the previous years, which affected the moving industry

Florida has important ports

Some of the most important ports in Florida are Tampa Bay and Everglades. Many distribution centers are located in Tampa. For that reason, the Port of Tampa is one of the most important trading centers in Florida. The location of this port makes it easy for cargo-transporting ships to travel more than once a day. Also, it is expanding quickly, and there are added cranes, new gates, and new storage capacity. Port Everglades puts personalized customer service in the first place, so that is one of the reasons this port is popular. It is the main port for receiving energy products, such as gasoline and jet fuel.

The population is increasing

The statistics say that Florida gains almost 1,000 new residents every day. There are currently 21,339,762 people living in Florida. That is an increase of 9.5% since 2020. New residents mean new business, and it is the number one state when it comes to establishing new firms. The number of residents is expected to go up, especially because there are many job opportunities, there are top educational hot spots in Florida, and it is a state with no income taxes.

The inflation chart with a magnifying glass on a paper
The supply chains disruptions didn’t affect Florida logistics industry negatively

Florida logistics industry will keep thriving

Despite the supply chain disruptions in 2023, the Florida logistics industry will continue to thrive. When we consider all the reasons we have mentioned, it doesn’t come as a surprise. Although the global situation when it comes to supply chain challenges should be seriously improved by the end of 2023, Florida’s cargo transportation industry won’t be negatively affected, but quite the opposite, it will be on the rise.

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