Warehouse Wisdom. Weekly. 09/27/2024

Happy Friday!

The big logistics news this week comes in the form of Hurricane Helene and an east coast port strike that is dangerously close to becoming a reality – both of which pose some serious risks for supply chains. If you’re in logistics, it might feel like you’re getting run over by a freight train, which, coincidentally, is how an Arizona State University employee feels this week as well. A delivery robot at Arizona State University ran into her and then drove over her again. Ouch. Hopefully the east coast will be in much better shape over the coming weeks.

Other than Hurricane Helene and the east coast strike, we also cover a looming Montreal longshoremen strike, FedEx’s new “Hold-to-Match” program, Walmart and Amazon employee litigation, and more. Let’s dive in.

Freight and Shipping

A strike and a hurricane are bearing down on the east coast

Oh, things are getting heated in the East and Gulf Coast ports. East and Gulf Coast port employers on Thursday with the International Longshoremen’s Association, are asking the National Labor Relations Board to order the union back to bargaining.

And with just a few days until a potential strike date of October 1, ports and terminals are making plans to help shippers, truckers and other logistics providers through the aborning supply chain crisis. Ports are advising shippers to move quickly over the coming days to clear out cargo, and some are offering extended gate hours and other accommodations. Most warned that refrigerated cargo won’t be monitored after Sept. 30.

But the US isn’t the only fertile ground for port strikes. Montreal longshoremen voted to approve a potential strike as talks intensify.

Meanwhile, Hurricane Helene is bearing down on Florida and its ports and has caused significant damage - now expanding into Georgia. And FedEX, USPS are halting some Florida delivery routes.

Finally, FedEx is implementing yet another cost-cutting measure – this time code-named “Hold-to-Match”. The new program holds ground packages slated for early delivery if another package is going to the same destination the following day. FedEx will still ensure that the packages are delivered on time.

Warehouse and Logistics Jobs

More warehouse worker claims hit Walmart and Amazon

Nearly 60 percent of its warehouse workers said the level of monitoring at Walmart exceeds that of their previous employer, and 56 percent said keeping up with the pace of work in the warehouse has proven challenging. And Amazon Logistics is under investigation for alleged violations of labor laws, including the city’s ordinance requiring paid sick time for gig workers that went into effect this year.

Logistics Vitals

Online e-comm and paid search will rule the holidays

The race for e-commerce holiday sales is on, and Adobe predicts a big jump in sales for online commerce – 8.4% growth in fact. Here’s some of the numbers:

• $240.8 billion – the expected U.S. online sales this year

• 12.8% - expected sales on mobile devices (53.2% share of all online sales)

• 16.9% - Cyber Weeks’ projected share of holiday sales (the biggest shopping day of the year)

• 28% - Percentage of projected revenue driven paid search

Warehouse Tech

AI combats porch piracy and GXO launches new Reflex Robot

What’s the latest use for AI in the logistics industry? Apparently, combating porch piracy and ensuring more precise shipping time estimates. And GXO is partnering with Reflex Robotics to develop a new type of warehouse robot. The multi-purpose humanoid can transition seamlessly between repetitive tasks, from tote transfers between other kinds of automation to product picking. Apparently, the robot also learns fast - it can be operational within 60 minutes of deployment.

Online Marketplaces

TikTok defies the odds; adds new search ad product

Just in time for the holidays, Amazon unveiled Ameli AI, which is an “always-available, expert partner,” that can perform tasks, answering questions like “What are the top things I need to do to prepare for the holiday season? What are the top things I need to do to prepare for the holiday season?”

Deep dive into TikTok’s US sales show something counterintuitive…no major brands with significant share of sales. Most of the top sellers have implemented a unique strategy on the platform, and oftentimes they highly leverage affiliates, which is encouraging for SMBs.

Speaking of TikTok, the company just announced a new Search Ad product on its platform. The new service will allow brands to place their ads in search results based on relevant keywords – with even more control and advanced targeting capabilities.

Warehouse Quick Deliveries

DHL makes big changes, shipping reaping havoc on sustainability, and more…

• DHL is focusing on fast-growing sectors while simplifying its legal structure as it aims for 50% revenue growth by 2030

• Shipping off track to meet 5% zero-emission fuel target by 2030

• California’s legal landscape gives a peak at the direction of retail privacy, labor standards, and logistics sustainability