Warehouses in high demand towards year end

Warehouses in high demand towards year end

Retailers have begun to fill their warehouses ahead of end of year peak sales.

A new warehouse under construction. The occupancy rates for warehouses in HCM City and Hà Nội reached 90 per cent in the first two quarters of 2022. Photo doanhnhansaigon.vn

HÀ NỘI — The demand for warehousing space is increasing dramatically as consumers' purchasing power is hiking up as the year comes to a close.Cushman & Wakefield, a global commercial real estate services company, reported that the occupancy rates for warehouses in HCM City and Hà Nội reached 90 per cent in the first two quarters of 2022.

The rates are expected to hit 100 per cent in the following months as retailers have begun to fill their warehouses ahead of late-year peak sales.

"Retailers have looking for new warehouses since June to prepare for holiday sales. Unfortunately, warehouses are in tight supply in the two cities", said Trang Bùi, General Director of Cushman & Wakefield Việt Nam.

A representative from the ecommerce platform Lazada said that it is normal for an ecommerce platform to have their warehouses stretched at the end of the year.

He said Lazada has leveraged technology edges to enhance its warehouse efficiency, easing the pressure on its logistics management.

"We have a large number of self-driving vehicles and over 300,000 sqm of AI-powered warehouses and sorting centres, which enable us to cut delivery time in peak seasons," said the representative.

TikiNOW Smart Logistics, a logistics firm affiliated with the ecommerce platform Tiki, went so far as to deploy robots to execute tasks. The robotic automation improves its warehouse efficiency significantly.

"Technology allows us to perform the most complex tasks on the platform and saves the sellers between 30 to 40 per cent of their costs", said a Tiki representative.

Lê Thị Ngọc Diệp, Commercial Director of the SLP Vietnam, remarked that warehouses in Việt Nam are not of high standards and scattered unevenly throughout the country.

She said the under-representation of warehouses in the North has been a major hindrance to the movement of goods nationwide, adding costs to supply chain management.

"Warehouses have been built predominantly in the south and only 30 per cent are in the north. Such uneven geographical scattering is a setback for the transportation of goods across the country," she said.

A report of the Ministry of Industry and Trade showed that more than 70 per cent of warehouses in Việt Nam cluster tightly around economic centres in the south.

As the demand for warehousing space is on the rise amid tight supply, rental rates are soaring. Some firms have had to use townhouses as a substitute for warehouses even though the former are not cut out for cold storage.

Trang Bùi said the deployment of robots, drones and sensor systems would considerably improve inventory management and fire safety in warehouses.

She also underscored the tight supply of professional warehouses as a great opportunity for firms to invest in ready-built warehouses to pick up the slack.

"Firms who have read-built warehouses, robots, drones and sensor systems in hand, as well as the capability to make accurate calculations along the supply chain, are the winner," she said.

A CBRE study showed that every US$1 billion of ecommerce revenues in Việt Nam requires 93,000 ha of warehousing space. That means the country will need over 2 million ha of warehousing space by 2025 for the focast revenues of $39 billion. — VNS

 

vietnamnews.vn

Ý kiến bạn đọc
Chủ đề liên quan
Có thể bạn sẽ quan tâm

What is FCL/LCL?

An FCL/LCL contract is a mode of shipment by ocean freight, also called “pier/house”. The charger takes the packages in a container and delivers a cargo which is destined for several different recipients. On arrival to the port destination, the packages are separated. They are then put at the disposal of the different recipients or delivered to them.

VIMC plans to divest from big seaports

CMSC recommended that VIMC divest capital in seaport enterprises, but only to a 65 per cent ownership rate.

North American logistics business in slow growth

The boom period for North American logistics companies is predicted to come to an end as economic activity cools down, slowing growth in 2023.

Efficiency advances in logistics only accessible with digitalisation

With Vietnam’s logistics industry estimated at $80 billion and with an increase of 14-16 per cent annually, the adoption of digital transformation and automation is expected to drive more efficiency in the sector.

Hai Phong - regional logistics service center - Last post: Human resource development levers

Hai Phong has been offering breakthrough policies and solutions, capturing new ideas to further promote advantages, enhance the role of logistics services in the economic structure of the city, strengthen connectivity and create diffusion in the region. However, human resources for this industry are still modest, requiring a sustainable development strategy.

Reduce logistics costs, increase import and export capacity

The Vietnam Association of Logistics Service Enterprises (VLA) has just reported on logistics activities in Vietnam, in which it is worth noting that logistics costs are equivalent to about 20-22% of annual GDP, significantly higher than Thailand (19%), China (18%), Malaysia (13%) and nearly three times higher than countries such as the US, Singapore (8%).

8 Golden rules when loading and transporting goods by container

PRINCIPLE 1: CLEAN THE CONTAINER, DEODORIZE BEFORE LOADING THE CONTAINER There are many items that are smelly, and a lot...

Local logistics industry aims for green development

Việt Nam needs solutions to develop green logistics to take advantage of free trade agreements (FTAs), especially new generation FTAs to help the industry develop, support market expansion and promote exports.

China Southern to list air cargo capacity on Freightos market

WebCargo unit penetrates Chinese market in a first for airfreight booking platforms

Logistics and fintech combine to solve Africa’s transport challenges

Key to unlocking value chains, especially in the tech start-up space is the ability of large established corporates to work effectively with small agile start-ups.