There’s a new inflation warning for consumers coming from the supply chain

Logistics managers are warning of persistent supply chain inflation in warehousing, which is sustaining upward pressure on warehouse rates, according to a report in FreightWaves. Bloated inventories due to a lack of consumer demand are one reason for the imbalance between warehouse supply and demand, with the lack of new facilities coming into the market also cited as a factor. “National warehousing capacity remains low and will remain tight for the foreseeable future as US industrial construction starts have fallen considerably year-over-year due to rising interest rates,” said Chris Huwaldt, vice president of solutions at WarehouseQuote. Bourke noted that rate levels for international air and ocean and domestic trucking fell back in 2022, but inflationary pressures remain in 2023, where demand outpaces supply. Consumers should prepare for the effect inflation will have on their wallets, according to the report.