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West Coast ports to rally while Houston stands resilient

Failed dockworker union negotiations on the West Coast have led to further diversion of US imports toward the East and Gulf Coasts, supporting warehousing demand in those markets for longer than expected. We expect a degree of this demand to persist into the medium term given the significant investments underway in a number of East and Gulf Coast ports. But, with contract disputes likely to be resolved soon and China’s re-opening, we expect the West Coast ports to regain market share this year.

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