LA-LB port warehousing nears limits

New warehousing capacity can not come online fast enough in Southern California. Photo credit: Shutterstock.com.

New warehousing capacity can not come online fast enough in Southern California. Photo credit: Shutterstock.com.

The recent development raises the concern that even though new distribution capacity nationwide in 2018 exceeded absorption for the first time in eight years, logistics space in the two largest gateways of Los Angeles-Long Beach and New York-New Jersey may be operating now at maximum utilization. Two developments are driving this trend, increasing imports and double-digit growth in online shopping.