G4 Logistics News

Container imports to US ports have dropped. West coast imports were down 26% in October. As labor issues out west push containers to more stable labor pools in gulf and east coast ports, the average price per container from Asia to the US settles around $3,200 per FEU (forty-foot equivalent unit). Just three months prior we were seeing $8,500 per container. Things are different this year with this 62% drop in container price from August to November (Peak Season). We find a few interesting points when digging deeper to see what this can mean for our clients. 

As of this point in 2022, there are over 20,000 private warehouses in the US according to the Bureau of Labor Statistics. The average annual growth in the number of warehouses in the US has been 3.2% per year over the last 5 years. This means the US has added over 3,000 warehouses in that period. Over the same 5-year period, e-commerce growth has significantly outpaced warehouse growth with an average annual growth rate of 16.5%. Today, only 14.5% of sales are made via e-commerce so that leaves a solid runway for continued warehouse demand. Normalizing for tangible goods vs virtual goods, it appears warehousing construction will continue to grow year over year.