Out of stock warning! Multiple Amazon warehouses are out of stock

As expected, the warehouse was liquidated again during the peak season.

The peak season in the second half of the year is approaching, and sellers have already started to prepare goods in advance. However, at this critical juncture, problems have arisen in the logistics link. Amazon warehouses are once again full, and some warehouses have no time to put goods on the shelves. Warehouses are full and refuse to accept, and contracts are postponed. Even Kapai has been completely paralyzed.

Amazon's multiple warehouses are seriously overwhelmed

Recently, many sellers have reported that Amazon warehouses are seriously overcrowded, especially the two new warehouses ABQ2 and PSC2.

Specifically, PSC2's new warehouse is full, and there are no direct delivery appointments. Refusal and cancellation of appointments are serious. ABQ2 is also full, and large-scale appointments are cancelled. Amazon Logistics cannot make appointments, and all appointments have become pending. There are also freight forwarders who say that except UPS and FedEx, all vehicles are no longer allowed to unload.

In this regard, many sellers expressed their empathy: "One ticket has been waiting for two months, and the customs inspection delayed it for half a month. Now it has been half a month since we received it, and there is no sign of putting it on the shelves." Another ticket has been waiting for a week since it arrived at the port for pick-up, but the freight forwarder said that Amazon has not released the number and cannot make an appointment.

Some sellers said that they had waited for half a month but still had no response, and it was useless to open a case. According to sellers’ feedback, the unsplit goods shipped in the past few months were basically sent to these two warehouses, and many people paid to buy this warehouse, but the reality has dealt a heavy blow to many sellers.

"When allocating warehouses, they just do it without thinking, and push it to the popular warehouses. When the goods arrive, they start to close the warehouses," some sellers complained. According to feedback from industry insiders, the earliest appointments from these two warehouses will be after October, and the timeliness will fluctuate by 1-2 weeks. It is recommended that sellers avoid these two points when shipping.

Judging from the feedback from sellers, warehouse explosions not only cause problems such as slow listing and out-of-stock, but may also result in warehousing defect fees. Some sellers have already been charged: "Whether it is divided into two warehouses, three or five, as long as the warehouse entry time of the same batch of goods differs by more than 30 days, a warehousing defect fee will be incurred." Under warehouse explosions, the warehousing time is extended and the seller's cost may increase by another 10%.

In addition to the two new warehouses mentioned above, many warehouses have experienced varying degrees of warehouse explosions. Sellers are advised to prepare in advance. Warehouses including LGB8, ONT8, LAS1, SMF7, SJC7, SCK1, AZA4, etc. have experienced serious warehouse explosions, and the floor is about 3-7 days away . Let's take a look at some specific warehouses ↓

The satellite warehouse IUSP will be liquidated, the floor will take about 3 weeks, and the board will take about 10 days ;

SBD1 , LGB8 , and LAS1 unloading is slow, and floor and direct delivery unloading is longer ;

GYR2 and LGB8 are slow to unload and there will be delays in putting them on the shelves ;

FTW1 flooring takes about 10 days, IND9 , FWA4 and other floors take about 5-7 days ;

Amazon's Eastern and Savannah warehouses have an average appointment time of 4-8 days ;

Some relatively stable warehouses have also recently shown signs of overloading, such as LAX9, MEM1, MQJ1, etc. Large-scale overloading has caused sellers to unload goods for 3 hours or even more than 6 hours. In addition, according to freight forwarders, Los Angeles terminals will be congested in the near future, and drivers will have to wait in line for a long time to pick up containers .

Peak season is approaching, surcharges are rising again

When warehouses are overwhelmed , the costs of logistics are also raised, and sellers' costs are increased again.

Take Amazon as an example. Starting from mid-October, it will charge a fee of $50 for each Prime exclusive discount submission. For sellers participating in the promotion, the promotion cost will increase sharply, which will also squeeze the sellers' profit margins.

At the same time, the platform will also increase related fees in terms of distribution and warehousing. The announcement shows that from October 15, 2024 to January 14, 2025, Amazon's small standard parts increased by 0.19 to 0.22 US dollars, and large standard parts increased by 0.24 to 0.41 US dollars. However, relatively speaking, the increase in large and oversized items is higher.

October to December every year is Amazon's peak season, and the storage fees during this period are often 1-2 times higher than usual. For standard-sized products, for example, the monthly storage fee per cubic foot is $0.75 at other times, but from October to December, the monthly storage fee per cubic foot becomes $2.40.

At the same time, DHL, Fedex and UPS are also raising surcharges. Among them, DHL plans to implement a peak season surcharge from September 15, 2024 to January 31, 2025, and the specific fees will be adjusted according to the route.

FedEx plans to impose demand surcharges starting September 16. FedEx claims that when the volume of shipments increases, the demand for capacity increases, operating costs rise, and its operating network faces other pressures, FedEx may charge demand surcharges, as follows↓

UPS announced that it will increase the surcharge twice during the peak season. The first increase will take effect on September 15, and the surcharge will increase from US$3.5 to US$7.75; from mid-November to November 24, UPS will increase the surcharge for the second time, to US$9.95.

In this regard, some sellers said that this is the largest price increase except for masks. Both the platform and the back-end logistics delivery are raising various fees, increasing sellers' costs, and these costs will most likely be passed on to consumers in the end. It is not ruled out that consumers will adjust their shopping habits, shopping time, or even change delivery methods and shopping platforms.

Freight rates have rarely plummeted, are container freight rates entering the off-season?

Compared with the rising costs of the back-end logistics links, perhaps the only thing that makes people happy is the recent sharp decline in the container shipping market. On September 12, the WCI composite index fell, and data showed that the weekly decline reached 13% to US$4,168 per 40-foot container.

Specifically, freight rates from Asia to Northern Europe and the Mediterranean fell by 14% and 12% respectively, and trans-Pacific rates fell by 15%. Among them, Shanghai-New York fell by 21% to $6,661/FEU ; Shanghai to Rotterdam and Los Angeles also fell significantly. At the same time, affected by the transfer of goods from the East Coast of the United States, spot freight rates in the East Coast of the United States have also dropped significantly. Industry insiders expect that freight rates will fall further in the next few weeks.

It can be seen that even though container shipping companies have taken measures to suspend sailings to maintain freight rates, freight rates have still declined due to factors such as workers' strikes and shippers' risk aversion. Some carriers have even begun to attract shippers by offering discounts. MSC has lowered its online quotes to 2930/4890 in late September, and YML has lowered its offline quotes to 2650/4650 in late September.

According to foreign media feedback, potential strike actions by the Canadian railway system and port workers on the eastern and Gulf coasts of the United States may launch a strike in early October. At that time, a large amount of cargo is likely to flow into the eastern United States, causing congestion and possibly reversing the freight rate trend.

In the future, sellers will still need to adjust their shipping times based on their own and market changes to maximize their profits.

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