For most companies, today’s dysfunctional supply chains are a headache and a cost. For warehouse owners like Prologis , they are yet another tailwind.
Global air and sea freight routes have become more expensive and less reliable during the pandemic. In March, just 7% of sea shipments from Asia to North America arrived on time, while 6% were on time for the Asia-to-Europe route, eeSea data shows. Even big companies with bargaining power can expect to pay contract freight rates around five times higher than in 2019. Fresh Covid-19 lockdowns in China and coming wage negotiations with West Coast dockworkers in the U.S. spell further trouble ahead.
