In the post-pandemic supply chain landscape, where and how you position inventory is core to profitability and service. The old logic — “ship everything from the East Coast because it’s cheap,” or “only warehouse on the West Coast because it’s closest to Asia imports” — no longer works for most nationwide distributors. Here’s the real …
In the post-pandemic supply chain landscape, where and how you position inventory is core to profitability and service. The old logic — “ship everything from the East Coast because it’s cheap,” or “only warehouse on the West Coast because it’s closest to Asia imports” — no longer works for most nationwide distributors.
Here’s the real story behind East Coast and West Coast logistics, and what it means for distributors thinking about growth, reliability, and cost control.
1. Geography Still Drives Logistics Economics
The United States has nearly 2,800 miles from California to New York. That distance creates dramatic differences in shipping cost and delivery time even for identical packages. Ground freight carriers calculate “zones” based on distance and with each zone increase comes both higher fees and slower transit.
That means:
- A package shipped from Los Angeles to New York can cost more and take longer than the same package from Ohio or the Northeast.
- Consumers expect fast delivery (1-3 days nationwide) as table stakes.
In short: distance still costs money. In time, in customer satisfaction, and in lost repeat business.
2. East Coast Still Dominates Population, But the West Coast Is No Backwater
Most people think of coastal hubs as equally important but reality tells a different story.
Roughly 80% of the U.S. population lives east of the Mississippi, concentrated in the Northeast, Southeast, and Midwest corridors which are generally closer to East Coast distribution hubs than to any West Coast location.
That doesn’t mean the West Coast isn’t valuable. It absolutely is, especially for:
- Brands with strong California, Oregon, or Pacific Northwest markets
- Companies importing high volumes of goods via ocean freight
- Businesses focused on same-day or next-day delivery in the western U.S.
But for nationwide distribution, East Coast facilities often reach more people more cost-effectively.
3. Supply Chain Shifts Are Real & The Rules are Changing.
In past decades, West Coast ports like the Ports of Long Beach and Los Angeles were dominant gateways for Asia imports.
But recent supply chain upheavals (like labor challenges, changing trade routes post pandemic) have made companies to rethink where containers land and how fast goods flow inland. Some importers shifted cargo to Gulf and East Coast ports to avoid congestion.
These shifts show that supply chains are not fixed. Now more than ever, they’re competitive assets that must be created with flexibility in mind.
4. Location Strategy Reduces Costs Only When Aligned With Demand
Warehouse location isn’t just about cheap rent. It affects nearly every cost driver in logistics:
- Shipping costs and carrier surcharges
- Transit time and delivery speed
- Inventory holding and stockout risk
- Customer satisfaction and retention
Studies find that strategic placement near major demand centers can reduce overall logistics cost by 10–30% and improve delivery times by 15–40%, depending on the market.
For distributors, that can mean the difference between hitting service level targets and constantly fighting transit delays or rush shipments.
5. There’s No One-Size-Fits-All, But Smart Networks Have Patterns
East Coast hubs often make sense when:
- Your customer base is distributed nationwide
- You need consistent transit times to the Midwest and Northeast
- You want predictable freight pricing and lower average zone costs
West Coast facilities work better when:
- Your volume is concentrated on the West Coast
- You receive large ocean freight imports and want shorter inland drayage
- You need rapid delivery across Pacific markets
But increasingly, the most effective distributors adopt multi-node networks that balance cost and delivery across regions. Placing inventory where customers are and where it can move fastest.
6. Adaptability Is a Competitive Edge, Not a Luxury
The logistics landscape isn’t static. Rising parcel rates, unpredictable carrier capacity, and global freight volatility (like ocean container cost fluctuations) mean that the distribution network that works today may struggle tomorrow.
Distributors that treat their network as strategic infrastructure are better positioned to:
- Control costs
- Reduce delivery exceptions
- Scale without compromise
- Win customers in more expensive zones
7. What This Means for Distributors Thinking About Growth
If your current East Coast-only network:
- Leaves you with surprise zone costs
- Causes delayed deliveries out West
- Forces frequent expedited shipping
- Feels less competitive in the West
…then it’s not a service problem. It’s a distribution alignment problem.
Positioning inventory closer to demand ,whether that’s through a West Coast facility, a Midwest cross-dock, or a coordinated bi-coastal strategy is a growth lever.
Final Thought: Geography Still Matters, but Strategy Wins
In 2026, logistics is about delivering predictable results at sustainable cost. East Coast vs. West Coast isn’t a battle with a single winner.
The right strategy is the one that aligns with your demand, your markets, and your growth trajectory.
