Chinese logistics operators are getting into US warehousing
Subscribe to enjoy similar stories. Logistics operators with roots in China are taking on more warehouse space across the U.S. amid broad changes in sourcing, manufacturing and global trade flows.
Prologis, the world’s largest industrial real-estate operator, said it estimates China-based third-party logistics providers and e-commerce companies accounted for 20% of net new warehouse leasing across the U.S. this year through the third quarter, which company officials say is up sharply over recent years. Chris Caton, the company’s managing director for global strategy and analytics, said Prologis has long leased space to Chinese retailers and logistics operators and the demand “has clearly accelerated this year." Industrial real-estate experts said some of the companies are based in China, while others have their headquarters in the U.S.
or elsewhere and primarily handle logistics from China to the U.S. Many of the logistics operators have focused on leasing space in major U.S. logistics markets near ports in Southern California, New Jersey and Savannah, Ga.
In New Jersey, logistics companies based in China leased 5.6 million square feet of warehouse space through the third quarter, nearly three times the amount of space those companies leased in that region in all of 2023, according to real-estate services firm JLL. Chinese e-commerce giants Alibaba Group and JD.com have been expanding their warehousing presence in the U.S., and third-party logistics firms including Western Post, Lecangs and Elogistek have also stepped up leasing. Western Post’s website lists an address in Shenzhen, China.
Read more on livemint.com
