Joe Santaularia

"From 2018 to 2020, the top 12 U.S. seaports were handling roughly 46 million twenty-foot equivalent units of cargo, known as TEUs. Then, during 2021 and 2022, volumes skyrocketed to more than 53 million TEUs, leading to an infamous bout of congestion and logistics delays. In 2023, volumes at the top 12 ports normalized above pre-pandemic levels, reaching 46.67 million TEUs, just above the 2019 record. How will 2024 volumes shape up?" https://lnkd.in/e8tegrxB

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Some interesting quotes from this write up by Freightwaves on a CSCMP "State of Logistics" report 1) "volatility is the normal condition for supply chains" 2) "projected a tightening of capacity and potential upturn in rates by the second half of this year" 3) "ocean volumes recently surged during normal quiet season for shipping" On the industrial real estate side, we have seen a few slower quarters of leasing velocity in the Charleston market, but notice an acceleration as we turn the corner into the second half of 2024. It seems inevitable that tighter market conditions are on the horizon for warehouse and transload space, but as it stands now, there are some great options for tenants to meet the growing demand. https://lnkd.in/e9uVSWPh

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The upcoming talks among the three North American trading partners are anticipated to be more intricate than those in 2018 when the USMCA came into effect, replacing Nafta. Key topics on the agenda include discussions on trade with China and the necessity for higher North American content in goods entering the U.S. tariff-free. #cfos #westmichigan #economicoutlook #logisticmanagement #mhs #westmichigan #westmichiganbusiness #realestatedevelopment #economicoutlook #outlook2024 #business  #grandrapids #holland

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In response to anticipated tariffs on Chinese imports, U.S. 🇺🇸 companies are proactively increasing their inventory levels, a strategy highlighted in a recent The Wall Street Journal article. This shift towards maintaining higher ‘strategic stock’ is poised to significantly impact industrial and warehouse leasing across North America. By pulling demand forward, businesses may seek additional storage solutions to accommodate their expanded inventories. This trend couls drive increased demand for industrial and warehouse spaces, presenting substantial opportunities for real estate developers and investors in the logistics sector. As companies prioritize supply chain resilience, the emphasis on strategic stockpiling underscores the critical role of robust warehousing infrastructure in supporting business continuity. This development not only bolsters the industrial real estate market but also highlights the evolving strategies businesses are adopting to navigate global trade uncertainties. Now the question remains for Canada 🇨🇦… Will we a similar trend with “near-shoring” inventories? https://lnkd.in/gfM2YSab

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This negotiation scenario is poised to become a compelling case study in business schools and economics programs, showcasing the application of game theory in multi-party negotiations. The situation involves a diverse range of stakeholders, extending beyond the immediate parties to encompass small businesses, supply chain entities, and political figures eyeing upcoming elections. To some extent the long-term futures of both direct parties are joined at the hip. They should be able to find a Nash equilibrium, benefiting all involved through a new agreement that incorporates salary increases for workers while minimizing disruptions. Recent reports suggest progress, with port authorities offering a 50% raise, juxtaposed with workers advocating for a 61.5% increase. That sounds like progress...for the sake of the U.S. economy hopefully it continues. #ports #gametheory #industrial #cre

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🌟 Texas: A Rising Star in Nearshoring 🌟 The shift towards nearshoring is transforming supply chains, and Texas is reaping significant benefits! 🚀 According to a recent article on Supply Chain Dive, companies are increasingly moving their manufacturing operations closer to home, and Texas is emerging as a key player in this trend. By relocating production to nearby regions like Mexico, businesses are reducing transportation costs, improving lead times, and enhancing supply chain resilience. Why Texas? Strategic Location: Proximity to Mexico offers logistical advantages and faster market responses. Economic Growth: Nearshoring is driving job creation and boosting the local economy. Innovation Hub: Texas is becoming a hub for manufacturing innovation and collaboration. Statistics & Case Studies: 62% of manufacturers have started nearshoring or reshoring their production capacities closer to the U.S., according to Deloitte. Averitt Express has expanded its operations in Texas to support the nearshoring boom, ensuring seamless cross-border operations and enhancing supply chain efficiency. McKinsey reports that 81% of companies have implemented dual-sourcing strategies, and 44% are developing regionalized supply networks to boost resilience. As companies continue to embrace nearshoring, Texas stands out as a prime location for sustainable growth and competitive advantage. Let’s keep an eye on how this trend shapes the future of manufacturing in the Lone Star State! 🌟 #Nearshoring #SupplyChain #Texas #Manufacturing #Innovation #EconomicGrowth #CRE

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Road Rage and so-called debates, what is the solution? Mortimer Adler describes the absolute need for the West to reclaim the rich and beautiful traditions of the western world, by reintroducing a true liberal arts education. in the 1950's Adler warned that if the USA did not do so, the consequences would be a nation a materially rich specialists with no connection to their past/history/traditions, and absolutely incapable of happiness despite material abundance. This apparent #roadrage is just another example of people unhinged from themselves, neighbors, and world. What of the "debate" the other night? There must be a better way to live. But just complaining about issues without solutions isn't helpful. Identifying issues and solutions is how we advance human excellence. We are called to use our freedom of choice to pursue and obtain the freedom of excellence (#CausaSui). An integral part of this path is reading, wrestling with the great ideas in the books of Western Civilization. #GreatBooks #ClassicalEducation

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Insightful Report on US Logistics from CBRE Research: 📦 Container Volume Exceeding Pre-Pandemic Levels 👷‍♂️ Labor Contracts for 45K Workers Expire in September 🌉 Francis Scott Key Bridge finally re-opens Final point: "Nearshoring" of manufacturing has arrived. Lázaro Cárdenas, Mexico had the highest YOY container volume increase (34.7%) in Q1.

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Same store NOI declined in Q1 at many large operators. This was inevitable. Slashing street rates will flow through the portfolio rapidly as half the tenants turn over each year. NOI declines may accelerate throughout 2024. Need revenue maximization strategies instead of minimization strategies. Use #commonsense when setting prices. Don’t follow the crowd in a race to the bottom. Offer higher quality service and improve the value of your assets. Appraising properties in this environment is nothing more than guesswork. How can you decide whether to use in-place rents or street rates? #selfstorage #investing #cre #pricing

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The Lodging Analytics Research & Consulting (LARC) quarterly webinars are must attend events to learn about the outlook for the U.S. hotel industry and specifics relative to the more than 60 submarkets that are covered. Best of all, the valuable intelligence is free! Email [email protected] or click the link in the comments to learn more and/or to register for the Tuesday December 10, 2024, 2:00 pm ET LARC 4Q-2024 U.S. Lodging Industry Outlook webinar. #hospitalityindustry #hoteltrends #hotelinvestment #lodginganalytics

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The major question is whether the threats are a negotiating ploy to wring concessions on trade and other policy priorities from U.S. trading partners, or the start of a sustained campaign to reshape global trade and the American economy. #westmichigan #cfos #westmichiganbusiness #realestatedevelopment #economicoutlook2024 #business #westmichigan #grandrapids #holland

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As freight markets stabilize, the logistics sector is seeing a surge in mergers and acquisitions. With more reasonable valuations and steady earnings, companies are exploring new opportunities for growth. Lower interest rates are also fueling this activity, particularly among private equity firms. Read more via The Wall Street Journal: https://bit.ly/3CBmFOY. 

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High interest rates got you down? How about a well Located Assumption and a very reasonable price point with great upside? Click the link below

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China-based third-party logistics and e-commerce companies account for 20% of new warehouse leasing in the U.S. What is driving the invasion of the U.S. e-commerce market by Chinese companies and why are Americans so enamored with products from Chinese e-commerce platforms? These sites have struck a chord by offering an unbeatable combination of affordability, variety, and convenience. Fast-fashion leader Shein has become famous for quickly turning the latest trends into affordable items. The scale and speed of Shein’s inventory are remarkable, with over 600,000 products available and around 6,000 new items added daily. It has an inventory turnover rate of just 40 days and an unsold inventory rate of less than 2%. https://lnkd.in/gjipxm4q

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As Lineage makes headlines with the year's biggest IPO, it's clear that the demand for efficient cold storage and logistics solutions is at an all-time high. For cold storage 3PLs competing with giants like Lineage, and food companies grappling with capacity constraints, there are unique opportunities to stand out and grow. Our Cold & Food Facilities team specializes in providing tailored real estate solutions that help cold 3PLs and food companies optimize their supply chains. Whether it's finding the right existing facilities to expand capacity, developing new cold storage capacity, or creating the right strategic partnerships to facilitate innovative solutions, our team is here to support your growth. With the rise in e-commerce and the evolving food consumption habits, having a robust cold storage strategy is not just beneficial—it's essential. Let's connect and explore how we can help your business stay ahead of the curve, ensuring you have the connectivity, facilities, efficiency and capacity needed to meet market demands and deliver excellence. Together, we can create a competitive edge in this rapidly expanding and evolving industry. #ColdStorage #3PL #SupplyChain #FoodIndustry #CommercialRealEstate #Logistics #Innovation https://lnkd.in/gmixyW5i

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Important shift to keep in mind ahead of tonight's debate: New data show the US-Mexico border situation cooling off compared to the late 2023 surge. Monthly border apprehensions fell further to 117K in May from 129K in April and a peak of 250K last December. The drop in border activity coincides with Mexico’s crackdown on unauthorized transit starting in December. DHS Secretary Mayorkas says border encounters have fallen more than 40% since the new asylum restrictions enacted in early June. However, it's still too early to see any effects in this data. So look for a sharper drop when June data is released. Notably, apprehensions are moving opposite the seasonal trend up. #demographics #immigration #jbrec

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https://lnkd.in/emvETDK7 The Panama Canal could be back at nearly full capacity in time for this year’s peak season if current rainfall forecasts prove to be accurate. The Panama Canal Authority (ACP) yesterday released a new schedule for the number of daily transits it expects to be able to handle over the coming months. The canal has a design capacity of 36 transits a day, although this is typically expressed as 34 to 38, but is currently allowing just 27. There were fears last year, when the country was in the depths of an El Nino-induced drought, that daily transits could fall to as low as 18 in February, but a series of mitigation efforts by the ACP kept the level above 20. The ACP said that, from 16 May it expects to offer 31 transits a day, and from 1 June that will increase to 32, meaning that the canal will, effectively, be operating at around 90% capacity. The ACP added that it hoped to return to full capacity by the beginning of 2025. “Current forecasts indicate that steady rainfall will arrive in late April and continue for a few months. If this is the case, the canal plans to gradually ease transit restrictions, allowing conditions to fully normalize by 2025,” it said in an advisory. “All modifications to restrictions will be contingent on forecasts. If rains fall short of expectations, the canal could retain or apply further restrictions to transits or draughts.” But it added: “However, moderate precipitation is expected to arrive later this month and grow in intensity, which would allow the Canal to progressively increase daily slots back to the 36 daily transits typically offered during the rainy season.” The news is likely to be particularly welcomed by US shippers on the east coast that saw some Asia-USEC services initially diverted through Suez to avoid Panama, then diverted again, around the Cape of Good Hope, to avoid Suez, incrementally increasing transit times considerably. The gradual increase in the canal’s ability to handle vessels also recently saw Maersk announce it would resume transits by its Oceania-North America east coast service after the restrictions forced it into using the Panama Canal Railway as a landbridge between Panama’s Pacific and Atlantic ports. Hapag-Lloyd and MSC both charter slots on the string, which is set to see its next Panama Canal transit in mid-May. The resumption of vessel traffic on the string also allows an extra call at the Colombian hub of Cartagena restored to the schedule.

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Honolulu 🏝 is the western metro area where 1-bedroom rent has gone up 📈 the most in a year. Rent in the state went up by 3.3% from $1,783 in 2023 to $1,841 in 2024. That’s up 18.9% from April 2019, when the average rent was $1,548. That's a 3.78% annual increase on average. Stead appreciation and rent growth are the underlying reasons why investors seek assets in Hawaii. Given the lack of supply and overwhelming demand, these economic drivers will not change. https://lnkd.in/gzMZKAh5 #multifamily #commercialinvesting #colliers

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