Skip to content

Snarled Supply Chain Is Making U.S. Warehouse Shortage Worse

  • Landlords Blackstone and Prologis are winners as rents soar
  • With no space, goods sit on docks, crews work in parking lots
Warehouses in the area known as the Inland Empire in Redlands, Calif.
Warehouses in the area known as the Inland Empire in Redlands, Calif.Photographer: Roger Kisby/Bloomberg

Record numbers of cargo ships bob in the waters off Southern California, unable to unload. A late shipment of patio furniture gets moved -- three times -- before finding a home for the winter. With no warehouse space, a crew assembles holiday displays in a parking lot in an effort to get them to clients on time. 

It’s all fallout from the global supply-chain crisis that’s clogging U.S. ports, pushing warehouses to capacity and forcing logistics managers to scramble for space. And it’s making already scarce warehouse space even more valuable.