European Warehouses Fill Up as Retailers Brace for Supply Chain Uncertainty

By Maria Kalamatas | July 21, 2025

Section: International / Logistics & Storage Trends

Hamburg, July 21 — Warehouses across Europe are nearing full capacity as retailers stockpile goods ahead of what many expect to be a volatile autumn for global supply chains, driving up storage costs and reshaping distribution strategies.

“Occupancy in some of our sites has reached 95 percent,” said Lars Petersen, managing director at EuroStorage Solutions, which operates facilities in Germany and the Netherlands. “Retailers are bringing in products early, from apparel to electronics, because they don’t want to get caught short later this year.”

Early stocking trend

The rush to secure warehouse space has been fueled by concerns over ocean shipping reliability, rising transport costs, and geopolitical disruptions. Many companies are moving inventory into Europe weeks earlier than usual, locking in storage contracts through October.

“We usually see this kind of build-up closer to September,” Petersen noted. “This year, it started in late June.”

Impact on costs and operations

With available space tightening, rental rates for short-term storage have climbed by as much as 15 percent since the start of July. Logistics providers are also reporting longer wait times for cross-docking and value-added services as facilities run near their limits.

“It’s not just about space — it’s about labor and throughput,” Petersen explained. “Handling thousands of pallets quickly becomes a challenge when every square meter is filled.”

Retailers hedge against disruption

Some companies are even booking secondary warehouse space farther inland to buffer against potential port congestion in August and September. While this adds cost, many see it as a necessary precaution.

“Carrying extra inventory isn’t cheap, but empty shelves are worse,” said Claudia Weber, supply chain director for a European apparel chain. “We’re treating storage as a form of insurance.”

What’s next

Analysts expect demand for space to remain elevated through mid-autumn, particularly if shipping delays worsen or consumer demand spikes. Operators are exploring temporary sites and modular storage solutions to keep pace.

“Flexibility is the only way to manage a season like this,” Petersen said. “The market is already tight, and we’re not even at peak yet.”

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