TAG Industrial Watch: October 5, 2024
For the first time since 1977, the International Longshoremen’s Association (ILA) went on strike this past week after its demands for a 77% hike in wages over a six-year contract and a ban on automation was denied by the U.S. Maritime Alliance (USMA). The historic strike was short-lived as the two sides reached a temporary contract extension until January 15th. If the ILA and USMA fail to reach a long-term agreement in the meantime, the 45,000 unionized workers across 36 ports along the East and Gulf Coasts (including the Port of Houston) will be ready to strike again (CNBC, Fox 26 Houston).
In the event of an extended strike, ships that usually leave from Asia to the East and Gulf Coasts via the Panama Canal would be redirected to West Coast ports, primarily in L.A. and Long Beach. Ships leaving Europe and Africa would travel through the Panama Canal to offload on the West Coast. This redirection would not only boost trucking and rail shipping activity from the West Coast to the East Coast but also short-term warehouse demand in Western port markets. As the CEO of Prologis (the world’s largest industrial property developer) indicated, an extended strike would unfortunately be a windfall for warehouse demand. While the increase in demand would primarily benefit big-box warehouses, small, mid-size, and industrial outdoor storage properties could also get a boost.
I N D U S T R I A L N E W S
Port Strike Ends As Workers Agree To Tentative
Deal On Wages And Contract Extension
CNBC – October 3, 2024
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Port Strikes Will Benefit My Industry, CEO Says
Newsweek – October 2, 2024
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Community Banks Show Resilience
Amid CRE Lending Concerns
GlobeSt.com – October 2, 2024
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The Secret Life Of Product Returns
Could Boost Industrial Leasing
Bisnow – September 25, 2024
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Stellantis Sales Declined In The
Third Quarter. This Is How Much
The Detroit News – October 2, 2024
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R E G I O N A L N E W S
Houston Port Strike 2024: Dockworkers
Demand Higher Pay, Fight Automation
Fox26 Houston – October 1, 2024
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Mars Wrigley Taps Developer For
Candy Factory Redevelopment
Connect CRE – September 25, 2024
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Gauge Real Estate Begins Construction On
192,660 SF Industrial Project In Southeast Houston
REBusiness – September 26, 2024
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Harbor Capital Breaks Into The DFW Market
With Landmark Acquisition In Denton
PR Newswire – September 5, 2024
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ARCO Design/Build Breaks Ground On
Speculative Industrial Facility In Laredo, TX
PR Newswire – September 18, 2024
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