The supply chain industry is experiencing a multi-level disruption this summer as record-breaking container import volumes converge with extreme seasonal temperatures, creating operational and energy challenges across ports, terminals and warehouse networks.

What began as a rush to front-load inventory ahead of anticipated August tariff changes has evolved into a system-wide stress test — one that is exposing vulnerabilities in both material handling operations and energy infrastructure.  

Shippers are accelerating inbound freight to get ahead of potential tariff increases, driving import volumes to levels that are straining every link of the supply chain. While ports are under pressure to process unprecedented cargo throughput, the impact extends well beyond the dock. Warehouses and intermodal facilities are absorbing higher inventory levels months ahead of traditional peak season, increasing not only equipment utilization and facility congestion, but energy demand simultaneously.  

With U.S. imports expected to reach record levels before tariffs take effect, logistics hubs can no longer rely on grid-dependent approaches to power their operations. Aging grid infrastructure and seasonal peak loads are creating growing risks of capacity constraints, demand charges and operational disruptions. Operators must rethink their energy strategy and consider on-site power generation for resilient, on-demand connection while supporting continuous material handling day-to-day operations.

While many facilities are looking toward electrification, they often find themselves bottlenecked by rising infrastructure costs and multi-year interconnection delays. For operators seeking to diversify energy sources without sacrificing uptime, propane has emerged as a proven, data-driven solution to help operators navigate these market shocks and grid constraints.

The financial stakes are also higher than many realize; recent research from the Propane Education and Research Council reports the median cost of a long-lasting power outage for a commercial organization is approximately $8,750. This figure, which accounts for lost revenue, equipment damage, and repair costs only represents a baseline, with total costs scaling rapidly depending on the facility's specific role in the supply chain.

The Ripple Effects of Energy Constraints

Historically, warehouse electrical systems were designed around predictable load profiles with moderate peak demand. Today’s distribution centers operate differently; high-density battery charging, warehouse automation, cold storage, robotics and more sophisticated technologies have substantially increased connected electrical loads.

The unprecedented import surge we are seeing now exacerbates operational strain, extending beyond port congestion:

● Power constraints and fleet availability: Peak-demand charges and charging bottlenecks are eating into margins during critical high-volume periods. Extended operating schedules are also pushing battery electric lift truck fleets to utilization limits. High-volume charging cycles combined with elevated HVAC demand during extreme heat can increase electrical loads and can trigger significant peak-demand charges. Without sufficient charging capacity or on-site power, equipment availability can become a potential bottleneck for throughput.  

• The cost disparity is stark: while diesel yard tractors often average an operating cost of $8.14 per hour, comparable propane units operate at just $6.17 per hour—a 25% savings in fuel spend alone. Furthermore, propane removes the “capital penalty” of electrification; propane-fueled forklifts are typically 30% less expensive to purchase than electric models, and they eliminate the capital expense of installing and permitting battery-charging infrastructure.

● Warehouse throughput and labor efficiency: Facilities are processing peak-season inventory volumes months earlier than normal, increasing pallet movements, dock door utilization and storage density. Congested layouts and elevated handling activity reduce productivity while placing additional physical demands on warehouse personnel working in high-temperature environments. The result is a significant safety risk and high operating costs with overtime and early seasonal staffing.

• The specific impact of these outages varies significantly by operation type. For manufacturing facilities, labor costs (33%) and lost revenue (29%) are the most cited financial stressors. Conversely, retail distribution centers face a different set of pressures, where lost revenue (48%) and materials loss/spoilage (29%) create the most immediate threat to profitability.

● Capacity planning and network agility: With import volumes projected to decline following the current surge sharply, operators face the challenge of balancing short-term capacity requirements against long-term asset utilization. Decisions involving labor expansions and material handling equipment deployment must account for the potential “bullwhip” effect, where temporary demand declines and leaves facilities with underutilized assets. 

Propane’s Value Proposition 

Recognizing these risks, the industry is already shifting its approach: 52% of commercial organizations have increased their backup power strategy over the last two years, driven largely by the need to protect critical loads (50%) and growing concerns over grid instability (39%). Operators are moving away from monolithic grid reliance toward hybrid systems that provide the resilience necessary to maintain productivity.

Fleet operators often think of the choice between diesel and electric, overlooking propane as a viable bridge from diesel to electric, especially if full electrification is the end goal.  For many operators and businesses, a complete transition to electric isn’t feasible overnight due to charging limitations, capital investment cycles and more.

Propane offers the opportunity to reduce emissions and modernize fleet operations immediately while providing the flexibility to transition to electrification over time.  

Propane-powered material handling equipment provides an independent energy source that is not constrained by grid capacity or charging infrastructure. Because propane cylinders can be exchanged in minutes, fleets can remain productive without the hand-off downtime associated with battery-electric equipment.  

This operational edge is quantified by real-world performance. The West Basin Container Terminal (WBCT) at the Port of Los Angeles, the first U.S. port terminal to power its entire yard tractor fleet with propane, saves an estimated $1 million per year. By leveraging domestic propane, WBCT matched diesel performance while avoiding the grid integration challenges inherent in electric fleet transitions. In 2024, WBCT paid an average of $1.66 per gallon for propane, which is less than half the price of diesel at $3.44 per gallon.

Protect Your Operations: Diversify Energy Now

Resilient operations will require more than additional charging stations or expanded electrical service and will need a thoughtful energy strategy that aligns with business continuity objectives.

For many operators, the solution will likely involve a hybrid approach combining multiple power sources to meet different operational needs. Battery-electric equipment may be well-suited for certain applications, while propane-powered fleets provide operational flexibility for high-utilization, multi-shift environments where uninterrupted productivity is essential.  

The current import surge serves as a reminder that supply chain resilience depends on more than transportation networks and warehouse capacity — it also depends on whether facilities have the flexible energy systems in place to support continuous operations during periods of exceptional demand. 

As August import volumes test logistics networks from coast to coast, operators that proactively evaluate their energy strategy will be better positioned to navigate today’s evolving supply chain challenges. In an industry where every minute counts, energy resilience is the core driver of performance and competitive advantage.