Last week the Wall Street Journal, in there newly minted “Logistics Report”, published an article outlining the continually reducing warehouse capacity in the surrounding areas of the New York / New Jersey Port Terminals. With a 10.5% year over year volume increase through the end of June, we’re already seeing the warehouse capacity shrink in the market. As many people in the logistics business know, part of the 10.5% grow is due to shifting volumes from the West Coast ports in an effort to lessen the impact of the strikes earlier this year. Some estimates show that 50% of the volume gained from the strike induced volume shift will continue to move through the NY/NJ ports.
On top of this volume increase, there’s the ever-looming Panama Canal expansion which is scheduled to be completed in April of next year. The completion of the expansion is expected to bring both larger ships and more volume to the NY/NJ Ports.
The entire WSJ article can be found at: East Coast Ports Face Warehouse Crunch