Warehouse Wisdom. Weekly. 4/12/2024

Only the most relevant news for SMBs to improve logistics – picked, packed, and delivered without the bias.

Author

Will Schneider
April 12, 2024

Happy Friday!

As we inch closer to the dreaded Tax Day in the US, we hope you're not drowning in forms and calculations and last-minute anxiety. Hopefully you won't need to dial in with any tax questions because calling in for help from Uncle Sam can take days! Unlike Best Buy, who is trying its’ ‘best’ to lessen the hassle of calling in as it adds tech to its customer service. Adding AI to your customer service tech stack is worth looking into!

But not to dwell too long on gloomy topics like taxes, there are some bright news topics in the logistics world, starting with signs that growth remains in the economy. While not ‘spectacular’ growth potential, it represents some hope.

And in other more spectacular news this week, we will catch you up on some positive updates on ocean freight and shipping rates, positive signs in the logistics job sector, and good news for purchasers of LTL and Truckload shipping services. Let’s get this week’s newsletter started so you can polish off those tax forms.

LOGISTICS VITALS

WHY 7 OUT OF 10 SHOPPERS DITCH THEIR CART

A recent report by Statista found that rates of abandoned shopping carts are remarkably high, soaring to 70% across the board and peaking at 85% for users on mobile devices. People just can't seem to commit to hitting that "Buy Now" button! Let’s look at the top reasons why shoppers ditch their carts:

  • High shipping costs - High shipping fees might be off-putting to customers, particularly those who are used to Amazon's free shipping, discouraging them from checking out.

  • Complex checkout processes - These issues include missing items from the cart and poorly made checkout forms.

  • Payment security concerns - Consumers believe there needs to be security for their financial information.

By addressing high shipping costs, simplifying the checkout procedure, utilizing advanced technology like AI for customization and payment enhancement, and promoting transparency, you've got yourself a winning formula for a seamless and fun shopping experience that will increase sales!

OCEAN FREIGHT

OCEAN FREIGHT SHOWS POSITIVE GROWTH & SHIPPING RATES REMAIN STABLE

The latest Global Port Tracker report shows that inbound cargo volume at major container ports is expected to surpass 2 million units in May - a first since last fall. Despite some supply chain hurdles, imports are climbing! Retailers are slowly but surely overcoming the challenge at Panama Canal, Red Sea, and the Port of Baltimore.

But don’t freight (pun intended) too much about Baltimore! As per a press release on Thursday, the U.S. Army Corps of Engineers anticipates opening a limited access channel to the Port of Baltimore by late April, and the Baltimore port is set to fully open by the end of May. The opening of the limited access channel means smoother sailing (literally) for barge container service, roll-on/roll-off vessels, and car transport. And even though vessels can't dock just yet, trucks are still welcome at the marine terminals.

And here is some more good news on ocean freight! Despite the chaos throughout the ocean freight industry, shipping rates remain stable. According to Xeneta, ocean freight container shipping rates are holding steady. We are more than happy to get a pricing break amidst all of the inflation!

LTL AND TRUCKLOAD SHIPPING

LTL AND TRUCKLOAD RATES AVOID HIKES, BUT PARCEL RATES INCREASE

According to the research conducted by AFS Logistics and TD Cowen, LTL and truckload rates have held steady since Q2 last year, but parcel rates are increasing. As fuel surcharges are rising, extra fees are making a grand entrance, causing parcel rates to grow during the first and second quarters of 2024 despite a limited overall demand. Tom Nightingale, CEO of AFS, says that while truckloads and LTLs are sticking to the status quo, parcel peeps are shaking things up that aim at increasing revenue. UPS and FedEx are pulling out all the stops with accessorial charges to beef up their revenue. So, watch out for those fuel, demand, and delivery area surcharges - they're on a mission to make profits look better this year!

WAREHOUSE LABOR

TRANSPORTATION JOBS SURGE & SUPPLY CHAIN SALARIES AND JOB SATISFACTION SOAR

Truck transportation jobs have been on a rollercoaster ride lately, but in March, transportation jobs saw the second-largest surge in 15 months! Despite some ups and downs since 2023, the Bureau of Labor Statistics reports a 5,100-job increase. Thanks to some revisions in the reports from February and January, we're up a total of 15,800 jobs from last August. We might still be 20,600 jobs behind by January 2023, but hey, progress is still progress!

Meanwhile, the Peerless Research Group survey shows that the supply chain industry is on the rise, with salaries and job satisfaction reaching new heights amid the ongoing evolution of global supply chains. While average salaries have remained steady from 2023 to 2024, findings indicate that 58% of professionals report salary increases over the past year. It's clear that the supply chain world is full of exciting changes and opportunities.

But, apparently, 87% of manufacturing workers think benefits are just as crucial as their salary. And get this: 60% say they work overtime because of labor shortages, which impacts with their work/life balance. Talk about work stress. It's not just affecting them emotionally (65%), physically (59%), mentally (57%), but also financially (50%). But if companies offer the right voluntary benefits that support their health and their well-being, it's a win-win situation for everyone involved.

With all of the good logistics job news, just make sure you’re not keeping too sharp of an eye on your staff’s every move. Amazon and Walmart are both under heavy scrutiny because of their excessive surveillance.

WAREHOUSE TECH

ROBOTS ARE WORKING WITH (NOT AGAINST) HUMANS IN WAREHOUSES

Mobile robots and AI are shaking things up in the world of logistics, but not by taking over human’s jobs. Instead, the newest robot assistant, Carter, is more of a collaborative robot than a job thief. With the ability to be used to support human workflows in addition to going solo, Carter is part of a new breed of warehouse tech geared to support workflows and increase warehouse throughput.

Speaking of the future of warehouse tech, Amazon has also just launched a new mega warehouse in North Andover, Massachusetts, where 1,500 new jobs will be created, and warehouse workers will work in tandem with robots. This place is a well-oiled machine, using robots named Hercules, Robin, and Pegasus to get things done smoothly. Boston University's Gordon Burtch even says these little guys are keeping warehouse associates safe.

More robots are still coming to warehouses, as Siemens, Universal Robots (UR), and Zivid have teamed up to create a cool new solution for warehouse automation. It's like bringing together the dream team of technology! With Siemens' SIMATIC Robot Pick AI, robots can now do tasks that used to require humans. And Universal Robots' UR20 is there to do all the heavy lifting (literally). Top it off with Zivid's crazy 2+ M130 camera that can see through transparent packaging! This trio is revolutionizing the warehouse game, trying to make e-commerce and fulfillment a breeze!

WAREHOUSE OPERATIONS

RETAILERS STRUGGLE WITH REAL-TIME INVENTORY ACCURACY

It seems like retailers are having trouble with real-time inventory accuracy. According to a report by Manhattan Associates, only 68% of retailers claim to have an accurate view of inventory across all operations. Another interesting finding - only a measly 4% claim to have 100% accuracy - a rare breed indeed! Looks like the dream of seamless integration between online and offline shopping experiences is still a bit of a fairy tale!. No doubt, retailers must up their game and get with the times before it's too late!

WAREHOUSE QUICK DELIVERIES

EBAY AND BEST BUY ADD AI TO THEIR SERVICES, AMAZON LAUNCHES BAZAAR IN INDIA, AND MORE…

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“In 2024's challenging economic landscape, where consumers are more hesitant to part with their money, the necessity for a frictionless shopping experience has never been more pronounced.”

- Raghav Sibal, Manhattan Associates