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Prologis has raised its 2026 development forecast as demand for warehouse space strengthens, driven by e-commerce, advanced manufacturing, and data center infrastructure.

The logistics real estate giant beat third-quarter earnings expectations, with revenue rising 8% year over year to $2.39 billion.

The company said customers have reduced excess inventory capacity, supporting demand for warehouse space. However, elevated construction costs, inflation, and higher interest rates continue to constrain new development.

Let's dive into the top news.

Parcel shipping costs are on track to hit record highs in 2026 as FedEx, UPS, and other carriers keep raising rates and adding fees for fuel, delivery areas, and additional services.

Key Details: The latest TD Cowen/AFS Logistics Freight Index projects ground parcel costs per package to reach 43.3% above January 2018 levels in the fourth quarter, up 5.8% year over year and 3.2% from the previous quarter. Express parcel costs are also projected to set a fifth-quarter record, rising 13.8% year over year.

Fuel surcharges have become a major cost driver. They climbed from 7.75% of transportation rates in early 2021 to 30% in September 2026. Even if diesel returned to its 2021 price of $2.91 per gallon, the current surcharge would still stand at 23.75%, roughly three times its earlier level.

Added Costs: Peak-season surcharges are adding another layer of expense. DHL eCommerce, Amazon Shipping, OnTrac, FedEx, UPS and the U.S. Postal Service have announced seasonal fees or other pricing changes. Meanwhile, smaller carrier Gofo plans to introduce a nationwide 4% emergency fuel surcharge on Oct. 26.

PhilaPort is set to receive $837 million in public and private investment to expand cargo-handling capacity, upgrade equipment, and support job creation. The funding includes more than $371 million from Pennsylvania, $266 million in federal grants, and $200 million in private investment.

What’s Happening: A key project is a new 2,000-foot berth at the Southport Marine Terminal, the first new berth at the site in 50 years. The investment will also fund dredging, waterfront reclamation, and new cranes and equipment. Combined with the port’s acquisition of the 152-acre Mustin Yard, the expansion is expected to increase its capacity to handle automobile and container cargo.

Further upgrades are planned at Tioga Marine Terminal to improve its ability to handle barges carrying bulk liquids. State officials estimate the investments will create more than 6,000 jobs and generate $45 million in additional tax revenue.

Big Picture: The port generated $1.2 billion in economic output for the state, and a World Bank study found that its performance improved more than that of any other U.S. port between 2020 and 2025.

U.S. industrial real estate demand accelerated in the third quarter of 2026, with occupiers absorbing 76.6 million square feet of warehouse and industrial space — the strongest quarterly total since early 2023.

Year-to-date net absorption exceeded 203 million square feet, as demand outpaced new supply for a second consecutive quarter, according to Cushman & Wakefield.

Key Details: The national industrial vacancy rate fell to 6.8%, its lowest level since the end of 2024. New leasing exceeded 200 million square feet for the second consecutive quarter, while approximately 810 million square feet of leases were signed over the past four quarters.

Hot-Spots: Inland markets accounted for around 80% of year-to-date net absorption, although demand also strengthened in port markets including Houston, New Jersey, the Inland Empire, Savannah and Miami.

What’s Next: New supply remains comparatively subdued. Developers completed about 185 million square feet of industrial space in the first nine months of 2026, down 13% year over year.

Ultra, a Brooklyn-based startup that leases robots to warehouses, has raised $62 million and expanded its partnership with AI robotics company Physical Intelligence. The funding includes a $50 million Series A led by Framework Ventures, with participation from Y Combinator, and a previously raised $12 million seed round backed by Y Combinator and Next View.

Automatic Workers: Ultra builds robots that automate the packing of goods for shipment, deploying them at third-party logistics (3PL) facilities. The company says its robots have packed more than 500,000 orders.

The company’s business model allows warehouses to adopt automation without making a large upfront investment in equipment. Customers pay an integration fee for installation, followed by a monthly fee covering hardware and software support.

Disruptions at critical supply chain chokepoints cause greater economic damage than comparable shocks elsewhere, according to a new Bank for International Settlements (BIS) report.

What’s Happening: The report finds that a one-standard-deviation increase in disruptions at key supply chain nodes is associated with a 50% larger decline in global industrial production growth than an equally large disruption at less critical nodes. Within a year, these chokepoint disruptions also raise downstream producer prices by about 70 basis points.

Critical Points: Risks are growing as geopolitical tensions, trade restrictions, and conflicts expose vulnerabilities in global supply networks.

The BIS identifies critical inputs and production hubs, including semiconductors, German machinery manufacturing, Chinese electrical machinery, and Middle Eastern fertilizer production. These nodes are hard to replace quickly because they serve multiple industries or are concentrated in a few countries.

The U.S. Department of Transportation is investing $200 million to expand truck parking across 12 states, addressing a persistent shortage that forces drivers to spend time searching for safe places to rest.

Key Details: The largest projects include $24.5 million for Iowa to modernize and expand six rest areas along Interstate 80, $15 million for 106 additional parking spaces across two Wisconsin rest areas on Interstate 41, and $11.95 million for a commercial truck parking area at Georgia’s Port of Savannah, which plans to provide nearly 300 spaces.

Other projects will receive funding in Texas, North Carolina, Arkansas, California, Connecticut, Illinois, Minnesota, Nebraska, and Tennessee.

Big Picture: Truck drivers can lose 56 minutes a day searching for parking, costing them an estimated $5,600 annually. Truck parking ranked fourth in the American Transportation Research Institute’s latest annual survey of trucking industry issues.

Overhaul has expanded its exclusive partnership with BNSF Railway to improve freight security across the railroad’s 32,500-mile network. The collaboration builds on nearly a decade of work, combining BNSF’s security technology and police department with Overhaul’s real-time risk intelligence teams to identify threats and intervene before cargo is lost.

Key Details: The expanded arrangement gives BNSF customers access to Overhaul’s integrated security services exclusively through the railroad.

BNSF operates more than 32,500 route miles across 28 U.S. states and three Canadian provinces, transporting consumer goods, agricultural products, industrial materials, and other freight.

Big Picture: The partnership highlights a broader shift in cargo security: moving from responding to theft after it happens toward identifying risks while freight is still in transit.

U.S. freight shipments rose for the second consecutive month in September, signaling a gradual recovery in the freight market as manufacturing activity strengthened and retailers replenished inventories.

Key Details: The Cass Freight Shipments Index increased 1.9% year over year to 1.062, its highest level since November 2024, following a 2.1% annual increase in August.

Demand Drivers: Manufacturing provided a key boost. S&P Global’s U.S. Manufacturing Purchasing Managers’ Index climbed to 55.9 in September from 53.9 in August, reaching its highest level since May 2022.

Stronger new orders prompted factories to increase production and hiring, with demand rising across several industries, including government and technology-related sectors.

Rising Costs: However, rising freight demand is coming with higher transportation costs. The Cass Freight Index’s shipper expenditure component rose 6.7% month over month in September and 20.4% year over year, accelerating from increases of 5.8% and 18.3%, respectively, in August.

The Ports of Los Angeles and Long Beach handled a combined 2.04 million TEUs in September, the busiest month on record for the San Pedro Bay gateway. Importers brought forward shipments amid greater certainty around tariffs and rerouted cargo to avoid disruptions at the Panama and Suez Canals.

What’s Happening? The Port of Los Angeles processed 1.04 million TEUs, surpassing its previous record set in July 2025. Loaded imports rose 18.6% year over year to 545,696 TEUs, while exports increased 9.6% to 125,751 TEUs.

Long Beach handled 997,177 TEUs, up 25% from September 2025. Imports surged 31.3% to 509,390 TEUs, exports rose 7.8% to 91,747 TEUs, and empty containers increased 22.1% to 396,040 TEUs. Across both ports, loaded imports totaled 1.06 million TEUs, up 24% year over year.

Big Picture: Los Angeles port executive director Gene Seroka expects Los Angeles to handle around 900,000 TEUs in October, with most holiday merchandise arriving by early November.