In a suite of predictions for 2024 business conditions, the logistics real estate firm Prologis has forecast that the global freight recession will reverse, demonstrated by double-digit growth in port and truck traffic, the firm said Monday.
In Prologis’ view, the Southern California region is likely to be among the first to benefit from that shift, as import volume at Los Angeles and Long Beach ports will exceed pre-pandemic levels. That will push Southern California logistics real estate demand to rank in the top 5 U.S. markets, reaching the highest level since 2021.
Already, the combined ports have seen a 46% resurgence in imports since their trough in February 2023, as temporary factors such as contract negotiations with dockworkers represented by the ILWU and the post- pandemic “bullwhip effect” faded as anticipated, Prologis said.
Overall, the firm delivered a sunny view of economic conditions in the coming year, saying “Our outlook highlights 2024 as a year of healthy demand growth, constrained supply, technological evolution of logistics facilities, and a turning of the capital markets cycle.”
In all, Prologis made seven broad business predictions for the coming year, including six more:
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