Flexe Releases Spot Warehousing Index, Reveals Stagflation in Warehousing
Flexe has released the 'Spot Warehousing Index' at the Reuters Supply Chain Conference, indicating stagflation in the North American warehousing market characterized by a continuous increase in vacancy rates for 16 consecutive quarters, while rents rose by 22%. The index aims to provide supply chain managers with more transparent warehousing cost data.
What are the key facts?
- 1Market phenomenon: Warehousing stagflation (rising vacancy rate alongside rising rents)
- 2Rental increase: 22% (over the past 16 quarters)
- 3Issuing entity: Flexe
What happened?
Data from Flexe shows that despite rising vacancy rates, rental costs remain high. The index helps businesses make better decisions between fixed and flexible spot warehousing based on real transaction data.
What does this mean for cross-border sellers?
Cross-border sellers should reassess their warehousing cost structures and consider adopting more flexible warehousing solutions to mitigate the profit squeeze caused by rising rents.