The U.S. Is Running Out of Warehouse Space, Intensifying Supply Chain Bottlenecks and Adding to Inflation

Man in blue polo and jeans working on a warehouse on his laptop

Available warehouse space near significant distribution hubs fell to historic lows in the third quarter of 2021, placing even more pressure on supply chain bottlenecks and increasing inflation, according to The Wall Street Journal.

Demand for industrial real estate in the third quarter outpaced supply by 41 million square feet, increasing the vacancy rate to 3.6%, down 0.7% from Q3 2020 and marking the lowest level since 2002, according to data from CBRE, the WSJ reported.

Warehouses near the Los Angeles and Long Beach ports in California, some of the most important distribution points of entry in the country, reached a vacancy rate of 1% in Q3 this year, according to the WSJ. During the same quarter in 2020, the vacancy rate was 2.3%.

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Amazon to Employees: We’ll Pay You to Quit and Haul Packages

  Amazon, which is racing to deliver packages faster, is turning to its employees with a proposition: Quit your job and we’ll help you start a business delivering Amazon packages. The offer, announced Monday, comes as Amazon seeks to speed up its shipping time from two days to one for its Prime members. The company sees the new incentive as a way to get more packages delivered to shoppers’ doorsteps faster. Amazon says it will cover up to $10,000 in startup costs for employees who are accepted into the program and leave their jobs. The company says it will also pay them three months’ worth of their salary. The offer is open to most part-time and full-time Amazon employees, including warehouse workers who pack and ship orders. Whole Foods employees are not eligible to receive the new incentives. Seattle-based Amazon.com Inc. declined to say how many employees it expects to take them up on the offer. The new employee incentive is part of a program Amazon started a year ago that lets anyone apply to launch an independent Amazon delivery business. It is part of the company’s plan to control more of its deliveries on its own, rather than rely…

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Walmart Makes Big Move To Keep Up With Amazon

Walmart Makes Big Move To Keep With Amazon

by Vandana Rambaran   Walmart is introducing a new same-day delivery service called Jetblack through its Store No. 8 incubator, which rivals competitor Amazon’s services like Amazon Prime and Prime Now. Jetblack, which has launched in New York City and will be rolling out to the rest of the country throughout the coming year, requires a $50 a month membership fee, but allows consumers to purchase directly from the retail conglomerate, Jet.com and other rival retailers via text message. The service will offer same-day and next-day delivery at no additional cost. The new Walmart resource will also send shoppers text messages to remind them of products that they are about to run out of, suggestions the service makes based on artificial intelligence gathered about purchase history, said co-founder and chief executive of Jetblack Jenny Fleiss in an interview with Reuters. Jetblack, a pricier alternative to its competitor Amazon, which offers Amazon Prime delivery for $12.99 a month, makes shopping suggestions to consumers based on their personal wants and needs via texts.  “Powered by conversational commerce, the future of retail will bring convenience and high-touch personalization to the forefront for consumers everywhere,” Marc Lore, Walmart’s head of e-commerce said in a statement to CNBC about Jetblack. In…

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