Even though imports are not coming as fast, and inventories are already high, demand for warehouse space has not slacked off. Read some conjectures as to why.
The Inland Empire is seeing rates as high as $100/square foot. Even the slowdown in Amazon warehouse openings, where they have chosen to rent out their space rather than occupy it, has not affected the demand.
This article gives lots of measures of factors contributing to supply chain cost. There are good graphs indicating the changes.
But these are contributing hidden costs to products, and those costs will be borne by consumers of the final products. That’s inflation.
It may be the first time that inflation is influenced by marine supply chain problems since the incessant wars on the seas in the 17th and 18th century. And in those days, frequent shooting wars guaranteed recessions; it was leisure goods like tea that had inflated prices. World Wars I and II also caused inflation, and shortages, but these were only partly caused by pillaging of marine traffic on the high seas. In most cases price controls were put into effect to resist inflation for ordinary people; and the extra goods were needed for the soldiers. We don’t have those now.
Somehow in the US and EU we need to find people to do the hard jobs in the supply chain to keep goods moving— warehouse jobs and driving jobs.
Greg Miller, Senior Editor Friday, October 22, 2021
A new application from MIT attempts to correct issues of inventory shrinkage ‘in the bins’ as they say. They use a drone to read the RFID tags on items without sending a human out to scan the bins.
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Supply Chain and Logistics 