Weekly Logistics Report - Week of Oct. 19th

Weekly Logistics Report

Introducing ShipHawk's brand new Weekly Logistics Report! In this update you'll find short summaries on some of the most important news updates in fulfillment, logistics, and supply chain.

This week's update contains 3 choice article summaries:

Overcapacity leads to massive surcharges for customers using UPS and FedEx
Same day delivery services + enterprise companies = pain for smaller businesses
Warehouse jobs are hot! So how does that impact eCommerce companies?

Peak Season Pain Looms for FedEx and UPS Shippers

Source: Freight Waves - read the article here

Summary

With the holiday seasons approaching, shippers should expect shipping rates to surge as much as 50% over the 2019 peak
On Nov. 2, FedEx will shift a percentage of deliveries from 2-day to 3-day delivery but still show shipment as 'on-time'
Shippers might want to consider shipping with a less-than-truckload (LTL) carrier

Commentary

Carriers are charging you more but taking longer to ship your items. UPS and FedEx parcel surcharges continue to hike as we get closer to the holiday season. With the holiday shipping demand, eCommerce shippers should expect prices to "surge by as much as 50% over the 2019 peak". Surcharges were only applied to higher volume shippers earlier this year, but will also apply to the lower volume shippers now.

Shippers who rely on holiday seasons for their annual revenue may face challenges due to increased shipping costs. Alternatives include continuing to negotiate better rates or shipping with regional carriers.

Bed Bath & Beyond Partners with Instacart, Shipt for Same-Day Delivery

Source: Retail Dive - read the article here

Summary

Both Bed Bath & Beyond and Buy Buy Baby are offering same-day delivery at $4.99 on orders over $39 by partnering with Instacart and Shipt
Consumers can access Bed Bath & Beyond and Buy Buy Baby products on Instacart and Shipt websites and mobile apps.

Commentary

As larger companies set unrealistic delivery expectations, smaller merchants face increased pressure to compete. While Bed Bath & Beyond grows through partnerships, small to mid-sized eCommerce businesses can still thrive with optimal shipping solutions.

Warehouse Employment is at an All-Time High

Source: Supply Chain Dive - read the article here

Summary

Warehouse employment has reached the highest level ever recorded according to the Bureau of Labor Statistics
Increased workforce demand and social distancing measures drive warehouses toward robotics
Major companies are adding thousands of seasonal employees: DHL (7,000), XPO (25,000), FedEx (70,000), UPS, and Amazon (100,000)

Commentary

With the booming eCommerce sector, companies are searching for warehouse employees while adhering to social distancing guidelines. While some are exploring robotics, many eCommerce companies can benefit from implementing automated shipping solutions to streamline operations.