It’s the same story that’s been told over the last few months, and it seems like it might not be changing any time soon. Demand for space continues to remain subdued and rates around the country reflect this current market.
Peak season is well and truly here, and whilst there has been a nice upswing in consumer spending through Black Friday and Cyber Monday it hasn’t been reflected in a material change in demand for overall storage suggesting businesses in general have been proactive this year. We see this theme continuing through Christmas and Boxing Day selling.
Some future stability in the market will be welcome, as there is still a sense of unpredictability in what’s to come in the medium-term. For now, the short-term will continue to provide some comfort to decision makers and capacity remains available in the major markets across Australia; however, it is unlikely that operating costs for 3PL providers will ease. How this plays out for storage rates is yet to be seen. There is an opportunity to secure some great rates if your volumes and tenure are appealing.
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 gathered through exclusive insights from our pallet matching work, undertaken with our network of 3PL providers and their customers.
Heading out of peak period we may potentially see increased competition between the higher tier 3PL providers currently in the market looking to secure contract work, as peak period did not hit forecasts.
Around the country, we saw Brisbane's and Perth's ranges narrow with the highs coming down and the lows levelling up. The two regions in highest demand, Sydney and Melbourne, have both come down in November, possibly indicating 3PL providers needs to quickly fill their sheds in the short-term to make up for peak period short-fall. Whilst Adelaide was the only region to see a spike. Overall, the National average storage rate has dropped slightly, to $4.55 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.
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1Benchmarked on per pallet per week (pppw) or part thereof.
Published: 12 December 2023