Small wholesalers across California, Oregon, and Washington are facing a new wave of financial pressure as inventory costs surge to their highest point in nearly five years. According to a new report from Bloomberg Markets, rising import fees, elevated warehousing rates, and increased transportation expenses are squeezing already-tight margins for thousands of regional businesses.
Much of the cost pressure comes courtesy of higher port fees and ongoing congestion at major entry points, including the Ports of Los Angeles, Long Beach, and Oakland. Importers report that tariffs on certain categories have climbed steadily since late 2024, while shortage-driven storage fees have pushed warehouse rates to new highs.
“Every part of the supply chain is becoming more expensive again,” said one Los Angeles–based distributor interviewed in the Bloomberg report. “We’re paying more to bring product in, more to store it, and more to ship it out.”
For many small wholesalers—particularly those operating with lean profit margins—these added expenses leave little room to adjust. Some have resorted to raising prices, while others are cutting back inventory to avoid paying for additional storage.
Industry analysts note that while overall supply chain conditions have improved since the disruptions of 2020–2022, the cost environment remains volatile. Fuel price fluctuations, container shortages, and increased demand for warehouse space continue to create unpredictable financial strain.
Despite the challenges, some wholesalers remain cautiously optimistic. Many believe that improved shipping routes and new regional warehouse developments could help stabilize costs later in 2025.
For now, though, small business owners across the West Coast are bracing for a difficult inventory cycle—one that could shape pricing, staffing, and profitability throughout the year.