Multiple Amazon warehouses continue to out of space
The Amazon fall promotion has ended, but the warehouse congestion has not eased; instead, it has worsened, and new warehouse congestion has become normalized. The situation has been exacerbated by events such as the strike on the U.S. East Coast and the upcoming Prime Day sale, with widespread incidents of shipment refusals and schedule adjustments. There are even rumors of a new round of shipping rate increases.
As the peak season approaches, Amazon sellers are frequently encountering challenges in logistics.
The fall promotion fell short of expectations, inventory transfer and stock-out errors during the promotion have become complaints among sellers, and the term “warehouse congestion” is also frequently mentioned in seller communities. Among these issues, the problems with new Amazon warehouses in the U.S. are the most common this year.
According to industry insiders, the severe congestion at the newly established ABQ2 and PSC2 warehouses in September continues, with ongoing risks of not accepting appointments, continuous cancellations, postponements, and even refusals to receive shipments. Even when shipments are accepted, they are often rerouted to other warehouses. Additionally, the new QYX5 and JOT1 warehouses have remained in a state of not accepting appointments.
Moreover, the situation at some of the popular warehouses in the U.S. is also not optimistic. On the West Coast, widespread warehouse congestion has been reported. Specifically, SBD1 is congested, with appointments available only four weeks later. Although the situation at LGB8 has slightly improved, appointments are still two weeks away, and cases of refusals or missed appointments remain frequent. At ONT8, appointments are available only in early November.
The phrase “either already congested or heading toward congestion” aptly describes the West Coast warehouses. Warehouses like MCE1, XLX7, and GYR2 have also experienced some degree of congestion, with appointment times ranging from a week to even longer, greatly increasing the possibility of delivery delays.
In the Central U.S., the situation has slightly improved. Congestion at FWA4 and MDW2 has eased, with appointments available in two weeks. Popular warehouses like FTW1, IND9, and DEN2 have appointment times of about a week. Unloading times vary, typically ranging from 15 to 48 hours.
Compared to the West and Central U.S., the East Coast is relatively better off. Congestion at CLT2 has eased, with appointments available in two weeks, though unloading times can exceed 10 hours. A few warehouses, such as ABE8, have seen worsening congestion, with appointments available in three weeks, while TPA2 and AVP1 have appointments about a week out.
The above situations make it clear that many Amazon warehouses are once again grappling with appointment cancellations and missed appointments. The situation is severe, and it will take time to return to normal operations.
On one hand, warehouses have just finished receiving fall promotion goods and are now starting to receive Black Friday and Cyber Monday goods, leaving no “breathing room” and creating operational challenges. On the other hand, frequent issues with new warehouses have occurred. Amazon’s original intention of opening new warehouses to solve the problem has not worked as expected, as they are not only expensive and remote but also have not received positive feedback from sellers.
Many sellers complain that inventory management fees have been charged, shipping costs have increased, and listing times are getting slower. Furthermore, the effects of the East Coast port strike in New York are still being felt. According to foreign media, New York’s port remains congested, and it may take around 20 days for normal operations to resume.
In fact, the situation is not just grim in the U.S.; Europe and Canada are facing similar issues.
“There is severe congestion at the DPD terminal in Europe, and warehouse P2 has been closed,” reported one seller. Freight forwarders have also noted that congestion at Amazon warehouses in Europe has caused goods to be undeliverable, resulting in a backlog. Consequently, DPD has decided to close its warehouse, and deliveries will be halted until October 16th local time.
Additionally, BHX4, LBA4, and WRO5 are also severely congested, with goods at LBA4 needing to wait at least two weeks before they can enter Amazon.
Warehouses overwhelmed, new round of price hikes coming
In Canada, several warehouses are facing severe congestion due to factors like workers stopping overtime shifts. Warehouses such as YYZ4, YOO1, YOW1, and YOW3 are experiencing serious congestion, while scheduling appointments at YYC6 and YEG2 has become increasingly difficult. Recently, dockworkers at the Montreal port have resumed an indefinite overtime stoppage, which could further worsen the local congestion situation.
Warehouse congestion is causing stress for countless sellers ahead of major promotions, and fluctuations in the sea freight market are also affecting their costs.
Currently, the trans-Pacific shipping market is seeing widespread container rollovers. For example, COSCO in South China experienced severe rollovers at the end of September, and this situation worsened in the first week of October. Container rollovers at Yang Ming and Evergreen are also intensifying. Meanwhile, shipping companies like Maersk and Hapag-Lloyd have announced new rounds of rate adjustment plans, impacting routes to the Mediterranean and South America.
Maersk is expected to increase the FAK (Freight All Kinds) rate for the Far East to Northern Europe and the Mediterranean starting November 4th. The rate for a 40-foot container on the Far East to Northern Europe route will rise to a maximum of $4,900, and to Northern Europe to a maximum of $5,700. Hapag-Lloyd, CMA CGM, Wan Hai, and others have also announced FAK rate hikes. UPS, FedEx, and DHL Express have also announced rate increases for end shipments, which will further increase sellers’ costs.
However, some have noted that current rate fluctuations are significant, and whether these price hikes will succeed remains uncertain, depending on cargo volume and booking levels by the end of the month.
In logistics, sellers are also facing challenges beyond congestion and shipping costs, such as stricter customs inspections. Recently, U.S. Customs has been scrutinizing FBA labels, with many containers being detained due to this issue, and some have remained unresolved for over a month.
This is related to customs’ increased scrutiny of multiple consignees. It has been reported that many freight forwarders often use their company name as the consignee, leading to the “SHIP TO” field on FBA labels displaying the logistics company’s name instead of the seller’s. If customs notices this, they may require the corresponding company’s importer tax number, or the goods could face the risk of being rejected and returned.
This news has led to divided opinions among sellers. Some believe that customs inspections of multiple consignees are rare and unlikely to occur on a large scale. However, some clients and marketers have reported that some competitors are now advising against including company or personal names in the “Ship to” field of FBA labels.
Customs inspections of consignees have always been present and occur from time to time. Some sellers have previously faced rejections due to this issue, with their shipments being delayed indefinitely. Therefore, it is advisable for sellers to strictly follow the relevant requirements, regardless of whether the news is true or not.
