Some importers who still receive shipments rush to rent space in a deposit buildings where they hope to buy time so that pricing tensions will support.
As steep prices on imports launch ports in the Los Angeles region in the rental of industrial property and industrial property rental, a rare building type is suddenly on demand – linked warehouses where goods can be stored without paying prices until they are removed.
Key staff in bonded warehouses must undergo checks of the history and the operator must establish an obligation to protect potential income from state rights. Customs obligation usually starts at around $ 100,000.
The prices are otherwise evaluated as soon as imported products affect American soil and the current tariff rate of 145% on Chinese products and 10% prices that apply to almost all nations considerably reduce imports At the ports of Los Angeles and Long Beach in the coming weeks.
But some importers who still receive shipments rush to rent space in deposit buildings where they hope to buy time so that the pricing tensions support themselves, said industrial real estate broker Danny summaries of JLL.
“There has been an absolutely crazy increase in the demand for linked space,” said summons. “Everyone wants to bring their goods here before it hopes to be a resolution” of the tariff war.
Importers aim to keep their goods in these warehouses for a month or two until the trade conflict is settled, he said. At worst, importers expect to withdraw their goods from the warehouses a little at the same time and to pay the prices as and when, while moving away from the rest of their imports from the tax man.
Unfortunately for importers, only a “tiny” fraction of approximately 2 billion square feet of industrial property in the region is endorsed by customs and the protection of American borders, said summaries.
As a general rule, endorsed warehouses are used by importers who bring goods from one country before grouping them and shipping them to another country without having to pay prices. Importers can also carry out a limited meeting or other goods improvements in deposit warehouses.
Although many importers cancel orders or refer goods to China before unloading it, others choose to bite the ball and pay to bring their orders back to the ground because they do not want to tend their hard -won relations with huge national retailers by not giving them the goods they promise or trying to increase their prices wholesale, said summons.
“Suppliers eat a lot of these prices,” he said. They assume that the tariff war will finally relax, and if the shelves are bare in certain stores because the import has become too expensive, suppliers want to have their products nearby when the prices are reduced.
“Everyone wants to bring their goods here and store them on the Southern California market, depending on the fact that this will be resolved in the next 30 to 60 days.”
Rights can be deferred up to five years and are paid according to the rates in force at the time of the withdrawal of a guaranteed warehouse, which is the main attraction for companies that try to avoid being financially drained by current rates.
“Trump administration pricing considerably reshapes import costs A recent report on linked warehouses. “With basic prices on most imports and increases in targeted prices for specific countries, companies are faced with substantial challenges with cost management and optimization of cash flows.”
Warehouse operators who wish to bind to their buildings to serve the sharp increase in demand will probably not be able to go through the process of any time.
The request process can take several months, said Geodis. Properties must meet certain physical requirements for entry and exit, as well as fire and safety safety requirements.
Geodis has more than 50 million square feet of warehouses in the United States, but none of them is endorsed-which the company is looking to change, said Brian Riley, vice-president of customs brokerage.
“The problem is that the duration takes it, compared to the need for this if the prices in China were to fall to 10% like all the other reciprocal prices,” he said. “Then, I would bet that the interest in endorsed would drop considerably as well.”
Currently, however, “the interest in the guaranteed warehouse has skyrocketed compared to what it was a year ago”. Said Riley.
Another way to delay tariff payments is to import goods directly into the foreign trade areas approved by the federal government. A key difference with bonded warehouses is that rights prices are generally locked up at the rate applicable at the time of admission to an external commercial area, said Geodis. The areas, however, allow the goods to be stored indefinitely.
The overall demand for warehouses used to move goods in the Ports of the County of Los Angeles is go down While generalized prices take effect, potentially naming the economic vitality of one of the largest industrial real estate markets in the world.
The rental of the buildings used to collect and distribute imported goods has slowed down the least temporarily while businesses are waiting to see if the prices are held at their rates announced or to their ease thanks to negotiations.
Port managers predict a spectacular drop in trade in the coming days. Gene Seroka, Executive Director of the Port of Los Angeles, told the council of Harbor Commissioners last week That “arrivals will drop by 35%, because most of all China expeditions for large retailers and manufacturers have ceased, and cargoes leaving Southeast Asian sites are much soft than normal”, “
The effect of these prices is different from supply shocks which suddenly modify the supply of goods or services, such as natural disasters, wars or epidemics of diseases, according to a real estate economist.
“Unlike a real shock of the offer, the higher prices of prices will not lead companies to rush for an additional inventory”, the economist Shawn Moura
Naiop real estate trade group said in a report.
“Inventory levels were already higher by importers looking for a stamp against prices and are likely to make a decline. If companies have not fully determined where they get a new offer when current stocks are exhausted, short -term shortages can contribute to higher prices, in addition to price increases due to prices.
“The shortages can arrive earlier than expected if consumers rush to buy goods before prices adapt completely to new prices,” said Moura. “The disturbed supply chains can also contribute to short -term shortages and delayed deliveries of building materials.”
