BJ is founder and CEO of Pacific Mountain Logistics, a full-service 3PL in San Bernardino, California, with 30+ years in warehousing. Recorded April 2026, BJ and Mark cover the state of freight, warehousing, and tariffs — then pivot into a masterclass on total cost of service and what brands should ask when evaluating a 3PL.

TOPICS COVERED:

- 2026 logistics: ocean freight chaos, tariffs, and the end of the trucking freight recession

- CDL enforcement and capacity correction on the truckload side

- Record warehouse vacancy and the COVID hangover

- Housing starts as the leading indicator for warehousing demand

- Brick and mortar resilience vs the e-commerce warehouse play

- The death of peak season: the July-to-December cycle barely registers

- SoCal lease rates during COVID and the "fleeing effect" to Phoenix, Vegas, and Reno

- Workforce productivity: Phoenix labor half as productive as the Inland Empire

- Total cost of service: drayage, handling, outbound, chargebacks, and why storage cost is the wrong number

- Retail compliance, routing guides, and the "Routing Guide Rodeo"

- $400K in chargebacks reduced to $11K in two years

- Primary vs secondary vs tertiary distribution markets

- Walk the warehouse: what a clean, calm operation tells you

CHAPTERS:

0:00 Opening

0:40 State of Logistics: Chaos

1:21 Trucking: End of the Freight Recession

2:44 Warehousing Oversupply and the COVID Hangover

5:37 Housing Starts as the Leading Indicator

8:01 Brick and Mortar Resilience

11:25 Small Box vs Mid-Size Warehousing

14:41 The Death of Peak Season

17:47 Social Media Impact on Brands

20:23 SoCal Lease Rates and the Fleeing Effect

25:06 Workforce Productivity in Outlier Markets

28:57 Breaking Down Total Cost of Service

33:05 Why 40% of US Imports Come Through LA

38:26 Retail Compliance and Routing Guides

41:11 Chargebacks: Punitive by Nature

43:04 From $400K to $11K in Chargebacks

48:54 The TSA Analogy for Routing Guides

51:06 How to Select a Good 3PL

54:33 Tribal Knowledge vs Embedded Processes

58:43 Primary, Secondary, and Tertiary Markets

1:04:42 Single-Point vs Multi-Location Distribution

1:08:22 The Supply Pipe Revisited

1:13:17 Walk the Warehouse

1:18:48 "We Only Get Paid to Do It Once"

1:22:29 The Kama Sutra Cookbook Story

1:23:51 Closing Thoughts

ABOUT THE GUEST:

BJ Patterson is founder and CEO of Pacific Mountain Logistics, a full-service 3PL in San Bernardino, California. He previously held senior roles at Target, Walmart, and NFI. BJ first appeared on Supply Chain Saga Ep. 001.

KEY TERMS:

BJ Patterson, Pacific Mountain Logistics, total cost of service, 3PL, warehouse vacancy, freight recession, CDL enforcement, tariffs, retail compliance, chargebacks, routing guides, Inland Empire, housing starts, supply pipe, Southern California logistics

Supply Chain Saga is produced by Mark Taylor, CEO of Warehouse Republic, a 3PL serving omni-channel e-commerce brands that sell through marketplaces like Amazon, Walmart, and Shopify, as well as retail partners like Nordstrom, Scheels, and Bass Pro Shops.

Website: warehouserepublic.com
Podcast: supplychainsaga.com
LinkedIn: linkedin.com/company/warehouse-republic
Host: linkedin.com/in/marktaylor

Have a logistics question? Email mark@warehouserepublic.com