logistics, supply chain, real state
“Tighter Warehouse Space Adds to the Supply-Chain Squeeze” [Wall Street Journal].
“‘Space in our markets is effectively sold out,’ said Thomas Olinger, chief financial officer of logistics real-estate firm Prologis Inc., in an Oct. 15 earnings call. ‘In the last 90 days, supply-chain dislocations have become even more pronounced, with customers acting with a sense of urgency to secure the space they need.’…. The squeeze on distribution space is adding to the broader congestion in supply chains, from tight container shipping capacity to backups at inland rail hubs, that has locked down inventory restocking efforts and dragged down economic recovery efforts during the Covid-19 pandemic. Space has been particularly hard to find near U.S. ports as shippers and logistics companies seek out warehouses to store containers and goods. The surging demand for warehouse space since the pandemic began has been driven by the move by consumers to online shopping and efforts by retailers to position goods closer to their customers for faster delivery. After the pandemic moved more shopping online, ‘a good percentage of that behavior change, it turns out, has stuck,’ said John Morris, who leads CBRE’s industrial and logistics business in the Americas.”
NK
https://www.nakedcapitalism.com/2021/10/200pm-water-cooler-10-27-2021.html