ONT8 warehouse explosion intensifies! Popular FBA warehouses are difficult to book and build warehouses

Popular FBA warehouses are difficult to book and build warehouses , and ONT8 warehouse explosions are exacerbated

Since a cargo ship blocked the Suez Canal, freight forwarders and sellers have been particularly concerned about the status of logistics. Whether it is air or sea delivery, price increases and warehouse explosions have been the main themes of logistics in a short period of time ...

The latest situation of warehouse overflow is that, on the one hand, there is warehouse overflow on the US-Canada line, with queues for cabin space until the end of April, and most of the cabin space is booked ; on the other hand, Amazon's popular warehouses are overflowing, with slow listing and difficulty in warehousing, such as ONT8, FTW1, IND9 , etc. These warehouses are congested and hot, and the warehouse overflow is so serious that sellers cannot even choose ONT8 when building shipments .

Amazon warehouse ONT8, as one of the most popular FBA warehouses in the United States, has the advantage of a large warehouse area, but the disadvantage of being overwhelmed. ONT8 allows sellers to experience the feeling of "pain and happiness".

Some sellers reported that one month had passed and their goods had been lingering on ONT8 for a month and had not been put on the shelves yet. They didn’t know when they would be able to be put on the shelves…

There are also a large number of sellers who have been harmed by ONT8. It is common for their products not to be put on the shelves for a month or not to be accepted for two weeks.

A freight forwarder also stated that Amazon’s warehouses are severely overwhelmed, especially ONT8. Both the listing and receipt have been delayed, and the back-end delivery has also been affected. Now sellers cannot allocate ONT8 when building warehouses .

In addition to ONT8, a freight forwarder said that Amazon has canceled all appointments for FWT1 for the week. Because the United States has distributed money, promoted vaccines, and the mask order has been cancelled, Americans have a much stronger desire to shop, causing the FBA warehouse to postpone the appointment time again, and the drivers have been waiting for more than 24 hours to unload...

In addition to the popular warehouses, according to feedback from sellers, warehouses such as GYR3, LAX9, MDW9, IND9, and ONT2 also have situations of cancellation of appointments, late listing, and slow signature.

In addition to the FBA warehouse overflow, some freight forwarders also said that the US-Canada routes were also full, and the queues for space were until the end of April. Most of the space was booked. For example, a shipping company said that from April 15, the freight rates from Tianjin to the United States and Canada would increase by GRIUSD800/1000/1125/1266USD, and the peak season surcharge PSS would be 480/600/675/760USD.

Some cargoes are diverted to air transport, and the congestion at US ports is expected to ease

Previously, many news showed that the air freight prices to the United States have ushered in a new round of skyrocketing. According to previous news from Yien, a freight forwarder reported three consecutive increases from the 17th to the 19th, which were 30, 39, and 44 respectively! It can be said that the price changes every day, and the prices are higher every day. Seeing this price increase, the sellers can't help but sigh that it really refreshed their understanding of air freight.

While complaining about the rapid increase in air freight prices, many sellers are also wondering why air freight prices have risen so much when it is currently the off-season?

Previously, there were reports that there were two main reasons behind this wave of price increases. One was that airlines had taken on a large number of COVID-19 reagents; the other was that Apple, Asus and other companies had large shipments of electronic products.

In addition to the above reasons, according to the information obtained by the editor on the external network, it is very likely related to the diversion of some goods shipped by sea to air.

According to CNBC, data from Freightos, an online international freight market, shows that although air freight is currently more expensive than sea freight, it has been falling in recent months. Therefore, some companies have turned to air freight to avoid congested ports and get popular or seasonal products on the shelves faster.

“While air cargo experienced volatility in the early months of the pandemic, such as a 400% increase between February and April 2020, ocean freight has become a bottleneck in the global supply chain, making air freight a more viable option in certain situations, ” said Eytan Buchman, chief marketing officer at Freightos.

“We’re regularly shipping 65-inch TVs from China to the U.S. by air,” said Shawn Richard, Eko’s vice president of global air freight. “We saw a 40% increase in air freight in December. Larger items like hot tubs are also being shipped . Our ocean freight team is now selling air freight. ”

Richard added that large home entertainment items like ping-pong tables and exercise equipment like treadmills, which are usually shipped by sea due to cost, are now being shipped by air as demand surges as the pandemic has locked people indoors and looks for ways to stay healthy and have fun outdoors .

“ Barbecues and related items like lawn /patio furniture, inflatable pools, filtration equipment, anything that can be used to enhance the home living experience and replace a family vacation are now being flown in , ” he said .

In addition, due to the narrow sales window of seasonal products, sellers of such products also choose air transportation to meet the inventory needs brought about by the increase in orders.

It is conceivable that the rerouting of the above-mentioned series of products to air transport will play a certain role in alleviating port congestion. In addition, as more dock workers are vaccinated against the coronavirus, it will also play an important role in unblocking the port.

Only 5% of dockworkers have been vaccinated so far, said Gene Seroka, executive director of the Port of Los Angeles , who added that the port is lobbying "all levels of government" for more vaccines to help ease congestion.

The resurgence of the epidemic forced a large number of FedEx employees in Hong Kong to evacuate

As an international aviation hub, Hong Kong is of great significance to sellers. However, due to the recent resurgence of the epidemic, Hong Kong has further tightened the quarantine measures for people arriving in Hong Kong, requiring crew members entering Hong Kong to undergo mandatory quarantine for 14 or 21 days.

This has made the work of international express delivery companies difficult to a certain extent. FedEx told the US Department of Defense that the quarantine measures that require crew members entering Hong Kong to be isolated in hotels for 14-21 days make it "unable" for them to maintain local operations, so FedEx was forced to transfer 180 pilots from Hong Kong to San Francisco to maintain the stability of its operations.

This measure caused great dissatisfaction in the United States, which expressed its intention to take retaliatory measures.

Washington has warned it may restrict flights by local airlines such as Cathay Pacific Airways over objections to Hong Kong's quarantine rules, which it says deny "fair and equal opportunity" to U.S. airlines .

The U.S. Transportation Department said in an order it was considering retaliation against Hong Kong over its flight crew quarantine rules, which forced U.S. cargo company FedEx to move 180 pilots out of the city to protect its flight schedule from future disruptions.

The US agency also asked Cathay Pacific to submit schedules of all its US flights within seven days so that it can assess whether they may "violate applicable laws or have an adverse impact on the public interest."

logistics