Space needed for bigger inventories

Global trade uncertainty will lead to increased demand for storage space, according to the United Nations Conference on Trade and Development (Unctad) September trade update. “Unpredictable trade policies significantly increase the cost and complexity of cross-border commerce,” Unctad warns. Companies are forced to carry excess inventory, hedge against losses and constantly reconfigure their supply chains – all of which reduce efficiency and raise operational costs. This has long-term implications. “The knock-on effect is weaker for long-term investments in critical areas such as factories, technology and workforce development. “The impact is especially severe for small firms and vulnerable economies. When access to major markets becomes uncertain due to shifting policies, these actors struggle to attract capital, sustain export strategies and build the productive capacity needed for growth.” It warns that as of 2025, trade policy uncertainty has escalated to unprecedented levels. The surge reflects a mix of economic and non-economic factors: industrial policy and competition for critical raw materials are driving rounds of supportive trade measures, while persistent concerns over trade imbalances are increasing calls for corrective trade measures. “Trade policy is also increasingly used to pursue domestic political, security and environmental goals unilaterally, thus prompting responses from trading partners. With rule- based trading systems weakened, there is little to constrain these shifts.” ER