Warehouse Wisdom. Weekly. 11/15/2024

Happy Friday!

How crazy has the world of logistics and supply chain management been lately? Well, East Africa is sitting on enough tea to caffeinate the galaxy (7.5 billion cups, to be precise), Amazon might soon have its drivers seeing the world through data-driven goggles that "shave seconds" (but probably not dignity), and wholesale inventories have fallen for the first time in six months as businesses channel their inner fortune tellers—and see cloudy skies.

But that’s only the tip of the proverbial iceberg for the week. In this edition of Warehouse Wisdom, we cover the ongoing strike issues in Canada, Amazon’s new “Haul” program, a new Port opening in Peru, and more. Grab your clipboard, your sense of humor, and maybe a cup of that surplus tea; it’s time to dive in.

Freight Strikes

Strikes, stalemates, and Santa’s side hustle

Ottawa has stepped in to end the port strikes in Canada, bringing some much-needed relief to the supply chain, at least temporarily. While the government’s intervention signals a return to productivity in B.C. and Montreal, it also underscores the fragility of labor relations in a sector already stretched thin. For shippers, it’s a sigh of relief—but let’s not pop the champagne just yet. When it comes to logistics, "resolved" usually means "see you again in six months."

In the ongoing drama of labor negotiations, the International Longshoremen’s Association (ILA) walked away from talks over East Coast port contracts, with automation once again being the deal-breaker. The union’s stance against robot incursions isn’t new, but it’s certainly consistent. For now, the ports are still operational, but the stalemate highlights a bigger question: How much longer can the industry delay its inevitable collision with technology? Spoiler: not long, unless robots suddenly decide to unionize too.

Just as Canadians prepare to embrace the season of giving, the country’s postal union has issued a 72-hour strike notice and today, employees officially walked off the job. Timing, as they say, is everything—and nothing says "happy holidays" like supply chain disruptions for your Christmas cards and online shopping. If the two sides can’t come to agreement soon, Santa may need to subcontract to Amazon drones. Let’s hope cooler heads (and maybe a few mugs of East Africa’s tea surplus) prevail.

Freight and Shipping

Global logistics plays chess and unlikely partners strike alliance for sustainability

China’s latest venture in Peru—a sprawling new port—is more than just an infrastructure project. The $3 billion Chancay port aims to streamline trade routes between Asia and Latin America, and, let’s be honest, it’s also a strategic flex in the global logistics chess game. For Peru, it’s a potential economic lifeline; for China, it’s another notch in its Belt and Road Initiative. As for the rest of the world? It’s one more reason to brush up on Mandarin shipping terms.

With water levels at the Panama Canal sinking to historic lows, officials are exploring the idea of a "land bridge" to move containers across the isthmus by rail or truck. It’s an innovative, if slightly ironic, solution for a canal. While the land bridge could help alleviate shipping bottlenecks, it’s also a stark reminder of the environmental challenges facing global trade. For now, the world watches and waits—though some ship captains might already be Googling “alternate routes to anywhere.”

In a rare display of unity, Amazon, IKEA, and other shipping giants are banding together to demand greener fuels for ocean cargo. The alliance is aiming to accelerate the development and adoption of sustainable alternatives, which is good news for the planet—and probably bad news for companies hoping to coast on old fuel standards. Whether this initiative sparks real change or just a PR-friendly ripple remains to be seen, but hey, at least it’s a step in the right (low-emission) direction.

Logistics in the Middle East just got more complicated, as U.S. forces launched strikes on Houthi targets in Yemen following a string of regional attacks. While the focus is on military conflict, the ripple effects on global shipping can’t be ignored. The region’s strategic waterways are critical to global trade, and any disruption sends a chill down supply chain managers’ spines.

Logistics Vitals

High pay, high stakes, and a decade of climbing the digital ladder for e-commerce directors

E-commerce directors are raking in impressive salaries as companies compete to attract top-tier talent in an increasingly digital-first marketplace. With demand for skilled leaders surging, businesses are finding they need to offer competitive compensation packages—or risk being left behind in the e-commerce race.

• The average annual salary for an e-commerce director nationwide is now $149,552, with some roles reaching over $300,000 depending on the company size and market.

• 70% of e-commerce directors are male, with 30% being comprised of women.

• For those wondering – on average, it takes about 9-10 years to become a director of e-commerce!

Online Marketplaces

Amazon slows down, Shopify speeds up, and Google plays holiday grinch

Amazon’s new “$20 or Less Haul” program is their latest strategy to win over bargain hunters by offering slower delivery options. The idea is simple: attract customers looking for deals by channeling their inner Temu. While it may seem like an odd pivot for a company synonymous with two-day shipping, the move underscores Amazon’s willingness to adapt—or maybe just to remind us that patience is a virtue. Either way, it’s a gamble that could pay off, assuming customers don’t forget what they ordered by the time it arrives.

Shopify’s recent quarterly results are making waves, with sales surging past expectations and reinforcing its reputation as the go-to platform for independent e-commerce. Whether it’s small businesses or side hustlers fueling the growth, Shopify is proving that David can still thrive in a world of Goliaths. As competitors scramble to keep up, it seems Shopify has taken the supply chain chaos of recent years and turned it into pure profit—proving yet again that nothing sells better than resilience and a good API.

Just when e-commerce sellers were starting to recover from October’s spooky season, Google dropped its November 2024 Core Update. While the full impact is still rolling out, early signals suggest it could shuffle search rankings yet again. For online retailers, this is another reminder that Google giveth, and Google taketh away—sometimes just in time for the holiday rush. If you haven’t updated your SEO strategy recently, now’s the time—or risk being buried under a mountain of irrelevant cat memes.

Warehouse and Logistics Operations

Plastic soup and lone robot troopers

Scientists reviewing data around major ports have uncovered something most of us already suspected but didn’t want to think too hard about: these hubs of global trade are hotspots for microplastic pollution. While no one expected ports to be pristine oases, the sheer scale of the problem highlights yet another environmental cost of our insatiable appetite for goods. The takeaway? Those container ships might not just be delivering products—they’re also sprinkling in a side order of plastic soup. Bon appétit.

Forget the robot revolution for now—there’s just one humanoid autonomous robot actually working in warehouses and earning a paycheck. Digit remains the lone machine proving that robots can do more than look futuristic in a lab or serve coffee at a tech conference – at least for now. While Digit is picking boxes and walking the aisles, the rest of the robot workforce seems to be on an extended lunch break. For warehouse managers, the future of automation looks promising… just as soon as the rest of the bots decide to clock in.

Warehouse Quick Deliveries

Job cuts, profits soar, and 3PLs take over the neighborhood…

• Pitney Bowes cuts 2,300 jobs.

• Higher demand and freight rates push German shipping company Hapag-Lloyd to profits.

• 3PLs are gobbling up more commercial real estate leases.