{"id":30901,"date":"2024-12-05T11:12:06","date_gmt":"2024-12-05T11:12:06","guid":{"rendered":"https:\/\/sflworldwide.com\/?p=30901"},"modified":"2024-12-06T09:56:27","modified_gmt":"2024-12-06T09:56:27","slug":"the-influence-of-chinese-logistics-operators-in-u-s-warehousing","status":"publish","type":"post","link":"https:\/\/www.sflworldwide.com\/blog\/the-influence-of-chinese-logistics-operators-in-u-s-warehousing","title":{"rendered":"The Influence of Chinese Logistics Operators in U.S. Warehousing"},"content":{"rendered":"\t\t
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In recent years, Chinese logistics companies and e-commerce giants have significantly expanded their footprint in the U.S. warehousing market, a trend that continues to gather momentum in 2024. These operators, including well-known e-commerce names such as Alibaba and JD.com and third-party logistics (3PL) providers like Western Post, Lecangs, and Elogistek, are not only securing extensive warehouse space across key U.S. logistics hubs but also reconfiguring supply chains to serve American consumers more efficiently.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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This strategic shift addresses rising demand for Chinese goods, leverages changing global trade policies, and prepares for potential tariff increases on Chinese imports. Here, we explore the motivations behind this movement, its impact on the U.S. warehousing sector, and what the future may hold.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Surge in Warehouse Leasing by Chinese Logistics Operators<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Data from Prologis, the world\u2019s largest industrial real-estate operator, reveals that Chinese logistics companies accounted for approximately 20% of new U.S. warehouse leases in 2024 through the third quarter, marking a significant increase from previous years. This uptrend is particularly evident in locations near major U.S. ports, including Southern California, New Jersey, and Savannah, Georgia. For instance, in New Jersey alone, Chinese logistics companies leased an astounding 5.6 million square feet of warehouse space in 2024, nearly triple their leasing volume in the region compared to all of 2023.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Prologis Vice President Cassie Hanavich noted that Chinese 3PLs accounted for 63% of year-to-date leasing activity in Savannah\u2019s industrial market, highlighting the strong presence and interest of Chinese operators in specific U.S. regions. This wave of Chinese involvement fills a gap left by U.S.-based retailers like Amazon, Home Depot, and Lowe\u2019s, which scaled back their warehousing expansion following the pandemic-driven demand surge.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Key Players: From Alibaba to Temu<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Several prominent Chinese companies are leading this warehousing expansion in the U.S. market. E-commerce giants such as Alibaba Group and JD.com, as well as 3PL firms like Western Post, Lecangs, and Elogistek, have been particularly active in securing warehouse space. Western Post, headquartered in Shenzhen, China, provides a range of services including warehousing, ocean freight, and customs handling. Meanwhile, Lecangs, a third-party logistics subsidiary of Chinese furniture manufacturer Loctek, operates from a location in Perris, California. Elogistek, with a presence in both the U.S. and China, also specializes in supply-chain management, focusing on seamless logistics between the two countries.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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These companies are capitalizing on their logistical expertise to support the rapid growth of Chinese-founded retail platforms such as Shein and Temu. Both Shein, a fast-fashion retailer based in Singapore, and Temu, a low-cost e-commerce platform owned by PDD Holdings, have established a strong U.S. presence. By partnering with 3PL providers and leasing warehouses domestically, these retailers are aiming to meet rising U.S. demand and streamline fulfillment processes.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Why Chinese Companies are Expanding U.S. Warehousing Operations<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Several factors drive the recent surge in U.S. warehouse leases by Chinese companies, from operational efficiency to navigating a shifting regulatory landscape.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Increased Demand for Chinese Products<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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U.S. consumers have shown strong interest in budget-friendly Chinese retail platforms like Shein and Temu, spurring demand for quicker shipping and better fulfillment options. Prologis Managing Director for Global Strategy and Analytics, Chris Caton, pointed out that companies with rapid annual growth rates, such as Shein and Temu, require extensive supply chains to maintain their pace. For example, when a company\u2019s market value jumps from $10 billion to $20 billion, it must scale its logistical network to match this growth, prompting investment in warehousing and logistics infrastructure.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Adapting to New Tariff Policies<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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With the U.S. political landscape increasingly favoring tariffs on Chinese goods, storing goods domestically helps Chinese companies circumvent potential trade disruptions. Recent remarks by Jason Tolliver, head of logistics and industrial real estate at Cushman & Wakefield, underscore that both major U.S. political parties support tariffs on China. By establishing warehouses in the U.S., Chinese companies are positioning themselves to manage cost increases that may arise if new tariffs or trade policies are enacted.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Regulatory Challenges and the De Minimis Rule<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Another critical factor is the Biden administration\u2019s move to tighten the de minimis rule. This rule previously allowed packages valued under $800 to enter the U.S. without customs screening or duty fees, benefitting Chinese e-commerce platforms with direct-to-consumer shipping. By leasing warehouse space in the U.S., companies like Shein and Temu can stock inventory locally, reducing their reliance on direct shipping from China and mitigating potential delays due to customs procedures.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Enhanced Supply Chain Efficiency<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Historically, fast-fashion and low-cost retailers have shipped goods from Asia, which often takes a week or more to reach U.S. customers. This extended delivery time puts these companies at a disadvantage compared to U.S.-based retailers like Amazon, Walmart, and Target, which typically offer shorter shipping times. By securing warehouses near U.S. ports, Chinese companies can reduce delivery times, improve customer satisfaction, and better compete with established American retail giants.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Impact on U.S. Industrial Real Estate<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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The influx of Chinese logistics companies has provided a much-needed boost to the U.S. industrial real estate sector. As demand from domestic retailers cools, international leasing by Chinese companies has filled some of the void left in the wake of the pandemic. Prologis data reveals that the U.S. industrial real estate vacancy rate rose to 6.4% in the third quarter of 2024, a noticeable increase from 4.6% a year earlier. However, leasing activity by Chinese operators has helped stabilize vacancy rates in key logistics markets, ensuring ongoing growth in the sector.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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In addition to stabilizing vacancy rates, the demand from Chinese companies has prompted further investment in logistics infrastructure in high-demand areas such as Southern California and New Jersey. Real-estate experts at JLL have highlighted the rising trend of Chinese logistics companies leasing space in proximity to U.S. ports, an essential component of efficient goods distribution across the country. This leasing activity not only supports real estate growth but also creates jobs and fosters economic stability in these regions.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Get Quote and Save UPTO 70% on your next shipping<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Conclusion<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Chinese logistics operators are reshaping the U.S. warehousing market by leasing vast amounts of industrial space in high-demand regions, driven by a combination of consumer demand, regulatory changes, and a shifting trade landscape. Companies like Alibaba, JD.com, Shein, and Temu are adapting their supply chains to meet U.S. consumer needs while navigating evolving political and economic conditions.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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This expansion offers a lifeline to U.S. warehouse owners in a softening market, filling spaces previously leased by domestic giants. However, it also raises questions about the future of U.S.-China trade relations and the potential for increased friction between the two economic superpowers. As logistics companies evolve to meet demand and circumvent regulatory hurdles, the U.S. warehousing landscape will continue to adapt, balancing opportunity and challenge in a complex global market.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

In recent years, Chinese logistics companies and e-commerce giants have significantly expanded their footprint in the U.S. warehousing market, a trend that continues to gather momentum in 2024. These operators, including well-known e-commerce names such as Alibaba and JD.com and third-party logistics (3PL) providers like Western Post, Lecangs, and Elogistek, are not only securing extensive […]<\/p>\n","protected":false},"author":3,"featured_media":30920,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ocean_post_layout":"right-sidebar","ocean_both_sidebars_style":"","ocean_both_sidebars_content_width":0,"ocean_both_sidebars_sidebars_width":0,"ocean_sidebar":"","ocean_second_sidebar":"","ocean_disable_margins":"enable","ocean_add_body_class":"","ocean_shortcode_before_top_bar":"","ocean_shortcode_after_top_bar":"","ocean_shortcode_before_header":"","ocean_shortcode_after_header":"","ocean_has_shortcode":"","ocean_shortcode_after_title":"","ocean_shortcode_before_footer_widgets":"","ocean_shortcode_after_footer_widgets":"","ocean_shortcode_before_footer_bottom":"","ocean_shortcode_after_footer_bottom":"","ocean_display_top_bar":"default","ocean_display_header":"default","ocean_header_style":"","ocean_center_header_left_menu":"","ocean_custom_header_template":"","ocean_custom_logo":0,"ocean_custom_retina_logo":0,"ocean_custom_logo_max_width":0,"ocean_custom_logo_tablet_max_width":0,"ocean_custom_logo_mobile_max_width":0,"ocean_custom_logo_max_height":0,"ocean_custom_logo_tablet_max_height":0,"ocean_custom_logo_mobile_max_height":0,"ocean_header_custom_menu":"","ocean_menu_typo_font_family":"","ocean_menu_typo_font_subset":"","ocean_menu_typo_font_size":0,"ocean_menu_typo_font_size_tablet":0,"ocean_menu_typo_font_size_mobile":0,"ocean_menu_typo_font_size_unit":"px","ocean_menu_typo_font_weight":"","ocean_menu_typo_font_weight_tablet":"","ocean_menu_typo_font_weight_mobile":"","ocean_menu_typo_transform":"","ocean_menu_typo_transform_tablet":"","ocean_menu_typo_transform_mobile":"","ocean_menu_typo_line_height":0,"ocean_menu_typo_line_height_tablet":0,"ocean_menu_typo_line_height_mobile":0,"ocean_menu_typo_line_height_unit":"","ocean_menu_typo_spacing":0,"ocean_menu_typo_spacing_tablet":0,"ocean_menu_typo_spacing_mobile":0,"ocean_menu_typo_spacing_unit":"","ocean_menu_link_color":"","ocean_menu_link_color_hover":"","ocean_menu_link_color_active":"","ocean_menu_link_background":"","ocean_menu_link_hover_background":"","ocean_menu_link_active_background":"","ocean_menu_social_links_bg":"","ocean_menu_social_hover_links_bg":"","ocean_menu_social_links_color":"","ocean_menu_social_hover_links_color":"","ocean_disable_title":"on","ocean_disable_heading":"default","ocean_post_title":"","ocean_post_subheading":"","ocean_post_title_style":"","ocean_post_title_background_color":"","ocean_post_title_background":0,"ocean_post_title_bg_image_position":"","ocean_post_title_bg_image_attachment":"","ocean_post_title_bg_image_repeat":"","ocean_post_title_bg_image_size":"","ocean_post_title_height":0,"ocean_post_title_bg_overlay":0.5,"ocean_post_title_bg_overlay_color":"","ocean_disable_breadcrumbs":"off","ocean_breadcrumbs_color":"","ocean_breadcrumbs_separator_color":"","ocean_breadcrumbs_links_color":"","ocean_breadcrumbs_links_hover_color":"","ocean_display_footer_widgets":"default","ocean_display_footer_bottom":"default","ocean_custom_footer_template":"","ocean_post_oembed":"","ocean_post_self_hosted_media":"","ocean_post_video_embed":"","ocean_link_format":"","ocean_link_format_target":"self","ocean_quote_format":"","ocean_quote_format_link":"post","ocean_gallery_link_images":"on","ocean_gallery_id":[],"footnotes":""},"categories":[151],"tags":[],"class_list":["post-30901","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","entry","has-media"],"yoast_head":"\nThe Influence of Chinese Logistics Operators in U.S. Warehousing - SFL Worldwide<\/title>\n<meta name=\"description\" content=\"Chinese logistics firms like Alibaba and Shein expand U.S. warehouse space to meet demand, adapt to regulations, and prep for potential tariffs on imports.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.sflworldwide.com\/blog\/the-influence-of-chinese-logistics-operators-in-u-s-warehousing\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Influence of Chinese Logistics Operators in U.S. Warehousing\" \/>\n<meta property=\"og:description\" content=\"Chinese logistics firms like Alibaba and Shein expand U.S. warehouse space to meet demand, adapt to regulations, and prep for potential tariffs on imports.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.sflworldwide.com\/blog\/the-influence-of-chinese-logistics-operators-in-u-s-warehousing\" \/>\n<meta property=\"og:site_name\" content=\"SFL Worldwide\" \/>\n<meta property=\"article:published_time\" content=\"2024-12-05T11:12:06+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-12-06T09:56:27+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.sflworldwide.com\/wp-content\/uploads\/2024\/12\/The-Influence-of-Chinese-Logistics-Operators-in-U.S.-Warehousing.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"833\" \/>\n\t<meta property=\"og:image:height\" content=\"468\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Tammy Waller\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Tammy Waller\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.sflworldwide.com\/blog\/the-influence-of-chinese-logistics-operators-in-u-s-warehousing#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.sflworldwide.com\/blog\/the-influence-of-chinese-logistics-operators-in-u-s-warehousing\"},\"author\":{\"name\":\"Tammy Waller\",\"@id\":\"https:\/\/www.sflworldwide.com\/#\/schema\/person\/3f0cad82c3ce07dec041a224612092ff\"},\"headline\":\"The Influence of Chinese Logistics Operators in U.S. Warehousing\",\"datePublished\":\"2024-12-05T11:12:06+00:00\",\"dateModified\":\"2024-12-06T09:56:27+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.sflworldwide.com\/blog\/the-influence-of-chinese-logistics-operators-in-u-s-warehousing\"},\"wordCount\":1155,\"publisher\":{\"@id\":\"https:\/\/www.sflworldwide.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.sflworldwide.com\/blog\/the-influence-of-chinese-logistics-operators-in-u-s-warehousing#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.sflworldwide.com\/wp-content\/uploads\/2024\/12\/The-Influence-of-Chinese-Logistics-Operators-in-U.S.-Warehousing.jpg\",\"articleSection\":[\"blog\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.sflworldwide.com\/blog\/the-influence-of-chinese-logistics-operators-in-u-s-warehousing\",\"url\":\"https:\/\/www.sflworldwide.com\/blog\/the-influence-of-chinese-logistics-operators-in-u-s-warehousing\",\"name\":\"The Influence of Chinese Logistics Operators in U.S. Warehousing - 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