BRi Global News - Record US Warehousing Demand to Continue Through 2021
Dear all Valued Customers
Demand for warehouse and distribution space in the US continues to grow at record levels as e-commerce retailers and shippers seek larger facilities with more yard space to handle growing inventories. Coming off of the strongest quarter ever for leasing of warehouse space, the US industrial real estate sector projects that strong demand for distribution facilities at seaports, inland rail hubs, and near airports will continue through 2021 and beyond.
According to industrial real estate professionals who addressed the JOC’s virtual TPM21 conference last week, that demand will be driven by e-commerce fulfillment and a pressing need by retailers to keep more inventory on-hand because of supply chain uncertainties.
All regions of the country are experiencing increased demand for industrial space. According to the CBRE report, the top three locations last year for net absorption were Southern California’s Inland Empire, Dallas-Fort Worth, and Atlanta. The top three growth markets in terms of net absorption as a percentage of existing inventory were Savannah, Charleston, and California’s Central Valley. The top three markets for industrial properties under construction were Chicago, Atlanta, and Dallas-Fort Worth.
BRi USA has strategically-placed warehouses for your distribution needs.
Surprise Demand Sent Container Rates Soaring
Container line CEOs and others told the JOC's TPM21 conference that carriers have been doing their best to adjust to volumes that surged to record levels in the second half of 2020 after plummeting during early COVID-19 lockdowns.
Container lines, who were just as surprised as the rest of us at the V-shaped volume recovery that followed COVID-19 lockdowns last spring, returned all withdrawn capacity to the trans-Pacific trade and deployed 150 extra loaders in the second half. In sharp contrast to the last major drop in demand seen during the 2008–09 financial crisis - which was their only recent point of reference - the trans-Pacific recovery was halting at first.
House Republicans and Democrats Voice Concerns to FMC That Ocean Carriers Decline to Ship U.S. Agriculture Exports
Earlier this week, a group of Democratic and Republican Congressional representatives led by John Garamendi (D-CA) and Jim Costa (R-CA) announced that they authored a bipartisan letter to Michael A. Khouri, chair of the Federal Maritime Commission (FMC), voicing concern over reports that certain vessel-operating common carriers (VOCCs) are declining to ship U.S. agricultural commodity exports from U.S. ports.
Over 100 congressional representatives signed the letter to the FMC asking for monthly updates on the matter, and the Agriculture Transportation Coalition (AGTC) has taken a leadership role urging the FMC to take action against ocean carrier practices that hurt U.S. exporters.
Hot US Truck Market Emerges from February Freeze
The US truck market is rebounding after weeks of below-freezing temperatures and winter storms across most of the country, including key freight markets and inland hubs such as Dallas-Fort Worth and Memphis. This March has become a hot month for contract freight, with higher-than-expected freight demand.
ONE Apus Almost Ready to Leave Japan
The Ocean Network Express-operated ONE Apus is getting ready to depart Japan after operations to discharge collapsed and damaged containers after its record-setting cargo loss in the Pacific Ocean last year.
A Customer Advisory dated March 10 said the ship is tentatively schedule to depart Kobe on or around March 15. If so, the vessel will have an arrival date in Long Beach of around March 30, however, ONE warns that the schedule is subject to change and is without guarantee.
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As a valued customer, we hope that you will continue to trust us to source the best options for your supply chain needs now and into the future. Should you have any questions regarding this News, please contact your Customer Solutions Representative.
Keeping you updated,
BRi Customer Solutions Team.
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