Warehouse Space is Scarce

Warehouse Space

US Supply Chain Worsening Warehouse Shortage

The global supply chain is clogging US ports and pushing warehouses to capacity. Products are arriving at their final destination out of season which means they must be stored or sold at a significant discount. Panic buying is causing some seasonal items to be ordered extra early but now that product is sitting with last season’s products too.

The pandemic started a chain of events which now combined, are hindering the supply chain: labor shortages, e-commerce with more disposable income, and an infrastructure that can’t keep up.

The vacancy rate in cities like LA are at only 1% resulting in higher rents. Developers can’t build fast enough, especially with material being unavailable due to the shortages.

A study by CBRE states that for every $1 billion increase in online sales, an additional 1 million square feet of warehouse space is needed.

KTI LTD is a family-owned asset-based 3PL based in the southeast and is rapidly growing. Headquartered in Pulaski, VA, KTI offers flexible storage and asset-based transportation. Additional locations include Bluefield, VA and Greenwood, SC. Currently, KTI is preparing other locations to be leased near the ports and across Virginia and North Carolina to help with the challenges our customers are facing.

For more information on our services or to request a quote, please visit our website https://www.ktiltd.com/test or call 540-994-9899 for immediate assistance.

Source: US Supply Chain Issues Are Making Warehouse Shortage Worse – Bloomberg

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3PL Provider – Warehousing, Transportation, Logistics, Plastics Processing, and Consulting