Why is yard storage cost skyrocketing around the country at various port and rail ramp cities? There are a multitude of reasons. Here’s what our experts say.
1. Supply and demand.
There is simply more demand than we’ve ever seen. When you have to lease temporary space or additional space to store containers, it simply costs more.
Here’s an example: four acres near Long Beach WITHOUT a building is $130,000 per month and you have to sign a longer term lease.
Limited space means yard storage is scarce, which drives prices higher and higher. But that’s not the only reason we’re seeing increased prices.
Are you sick of the word congestion yet?
Yard congestion means poorer utilization and more jockeying. Yard hostelers are continually moving non-returnable empties around to maintain yard operations.
A yard full of empties equals grid lock. If your yard can hold 100 containers and you have 100 non-returnable empties, your operation grinds to a halt.
With the appointment system for pick up from the terminal, appointments for warehouse delivery, and appointments to terminate empties, almost every container hits the yard. A yard full of empties means overall slower operations and poorer driver utilization.
4. Last minute bookings
We’ve been seeing an increase of last minute rolled bookings with containers that have already been loaded at the shipper’s location. These types of bookings are taking up extra yard space.
For more consistent updates on the state of the ports, rails, and trucking make sure you’re following us on LinkedIn.