On this episode of Midday Market Update, Kevin Hill and Michael Vincent talk about today’s top headlines, what inventory crunches mean for industrial real estate and how the air markets are faring.
Headlines
Project44 has announced its acquisition of Ocean Insights with hopes to provide more visibility to clients and manage the severe congestion plaguing West Coast ports. The merger will allow for real-time tracking of ocean freight, both with ships in transit and at anchor.
Retailers are continuing to struggle with inventory replenishment as consumer demand stays high. FreightWaves’ Todd Maiden reports efforts to replenish warehouses and store shelves is keeping demand for trucking capacity high as well.
The FMCSA has released data showing more truck drivers are heading back into the workforce after drug violations. Trends reveal more drivers are taking necessary steps to be reinstated as eligible workers.
Air cargo update withEric Kulisch
FreightWaves Air Cargo Editor Eric Kulisch joined the show to talk about the state of both passenger air and air cargo markets. “Air cargo is back,” said Kulisch, even though the passenger side is still struggling.
“The bad news is capacity is so constrained and that is what’s hurting shippers,” he said. Kulisch linked the continued passenger decrease and resulting lack of belly space in passenger jets as one of the reasons for capacity tightness.
How retail inventories impact warehouses
The last guest on the show was Laurance Alvarado, CEO of WARECAP, who discussed how inventory shortages are impacting the warehouse real estate market. Alvarado said right now there is simply not enough stuff moving through supply chains to warrant people buying up full warehouse space.
Alvarado said now is a great time for companies to think about “pop-up warehouses” or utilize refrigerated trailers or parking lots as temporary freight storage.
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