How COVID-19 Increased Demand for Storage Containers

The coronavirus pandemic has had an impact on every sector and industry around the world. One industry that has seen both negative and positive implications is the shipping industry. While shipping processes became dicey and were even put on hold for months once the virus came to light, as time progressed it took an interesting shift. This is most noted in the increasing demand for storage space and storage containers. Here’s how COVID-19 caused a domino effect in demand for storage containers.

Shipments Stalled

One of the first impacts was a stall on countries willing to receive shipments from overseas. As the outbreak became apparent, many shipping companies were faced with challenges as more countries imposed travel restrictions. This in turn impacted the movement of goods from country to country.

Supply Chain Management

As the movement of goods stalled, both manufacturers and the retailers who usually receive their goods were in a sticky situation including:

  • Restrictions shut down non-essential services including retailers and warehouses

  • Retailers were closed so had no need for their inventory, and also faced full capacity warehouses since product wasn’t moving in stores

  • Retailers could not collect cargo from shipping yards as their warehouses were full or closed

  • With warehouses at full capacity, demand for port storage facilities began to rise

  • This, in turn, reduced space for incoming cargo shipments

  • Port closures reduced staff to manage the cargo overload and challenges

  • All of this led to delays which further impacted the domino effect on storage challenges

As all of this was underway, business strategists and investors started to spot big-time opportunities.

Investment in Storage

Big players began to see the pattern forming and started investing in logistic opportunities. This was most noted in cold storage facilities to help prolong life of perishable goods. Investments in large lots of land to help accommodate shipping container storage demand also rose in the industrial real estate market. In fact, self-storage and onsite storage container storage solutions portfolios also became more attractive to investors. Now experts estimate Canada’s self-storage industry could see growth of 5.3 per cent by 2027.

However, it is the storage container and self-storage industry that stands to see the most growth. COVID has refocused shipping opportunities with the demand for industrial space to support storage requirements as more stores lockdown or shut down permanently. There has to be somewhere for liquidators to store goods.

Handling Storage Demand

With little space available for all this stockpiled inventory, there is not only interest in large storage space. Investors are also looking at affordable options found in the self-storage onsite storage, storage container purchases and storage container rentals. These sectors offer ample opportunity to bring in income with the ongoing demand for temporary storage space for larger amounts of goods. Size, location, and flexibility of onsite storage container storage solutions make it a highly desirable option for companies in need of temporary or even longer-term storage solutions with an emphasis on:

  • Flexible or smaller sized units

  • Cross-market external storage options

  • Storage container systems for easy automated retrieval and space usage optimization

As a result, humble storage container and onsite storage container storage solutions are becoming in high demand in the age of COVID.

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