3PL Market Roundup – December 2023
Hello 2024! We’ve bid farewell to another year, but not to some of the challenges that 2023 threw our way. December was a quieter month for warehousing requests with many of our network members working hard to stretch existing capacity and test the rubber wall theory! What we have noticed is that rates around the country appeared to level out.
Inflation has been topical over the last 12 months having a strong effect on rental rates and storage in general. Inflation is still running high but indications from the RBA is this is heading back towards the target range which will be a welcome relief for the logistics sector.
The summer peak period is well and truly over. Third-party logistics (3PL) providers and product providers alike are turning their focus to budgets, inventory, and storage plans for the year ahead – hoping for a return to normalisation in consumption. Perhaps we are seeing an early sign of this with the levelling out of storage rates across Australia?
Warehouse capacity remains available in the major markets across Australia. It’s too early to tell what 2024 will have in store for the 3PL landscape, but we do anticipate costs remaining at these levels for some time as many 3PL providers locked into new medium- and long-term property deals across the country.
With the recent Black Friday, Cyber Monday, and Boxing Day spending sprees* of consumers, we might see storage demand rising again in the medium-term. In the short-term, there are still competitive warehouse storage rates in the market for product providers looking to secure a longer-term 3PL partner.
*ARA expected Boxing Day sales of approx. A$23.9B across Australia in 2023! Almost 2% up on 2022.
Storage prices around the country
Our recorded pallet storage prices can vary widely based on factors such as location, warehouse size, services provided, duration of storage, and the specific businesses we're dealing with. Below is a high-level summary of current average market rates around the country. The data is collated from our recent market activity.
The National average storage rate has increased slightly, to $4.59 mark pppw1.
It's important to note that these figures are based on uTenant’s network of 3PL providers and will change over time. To get accurate and current pricing information, we recommend contacting us directly to discuss your specific 3PL and storage needs.
- uTenant PalletMatch Team
uTenant has an extensive 3PL provider network that is able to place clients in warehouse space specific to their current or growing needs. uTenant's purpose-built PalletMatch platform matches those looking for warehouse space, with those who have it – across Australia and New Zealand. Get in touch with us today to find out more about PalletMatch and how it can help you.
If you have warehouse space to fill, get in touch with the uTenant team now.
If you are looking for warehouse space click the button below to start your search with uTenant.
Need warehouse space?
1Benchmarked on per pallet per week (pppw) or part thereof.
Published: 17 January 2024