The Shipping, Logistics & eCommerce News Feed

Welcome to the Easyship eCommerce and logistics news feed! This is your place to catch up on all the must know shipping, logistics and eCommerce news impacting your business. Each month we'll provide updates on prices increases, logistics delays, eCommerce trends and other news we discover that we know will be important for you as you grow your business.

December 1, 2020

2020 Peak Season Port Congestion

With peak season underway, merchants relying on ocean shipping to get their goods into Europe and North America from Asia are facing serious congestion at many ports, causing significant delays and hampering their ability to stay fully stocked with inventory. Merchants can expect increased rates and surcharges that might last until early next year.

The current congestion is attributed to the surge in demand after the COVID19 pandemic shut down whipping earlier in the spring. With economies opening back up during the summer, merchants and retailers rushed to stock up to keep up with consumer demand, largely driven by eCommerce. This has created a perfect storm heading into peak season with staffing shortages contributing to the delays at some ports.

Here are a few important ports to know about and what delays merchants can expect with ocean shipping.

• Los Angeles / Long Beach, US - Delay days: Unknown: Many vessels are arriving outside of LAX ports but cannot dock. ETA (Estimated Arrival) delays are around 1-2 weeks depending on carriers. Once a vessel is docked, cargo unloading can also be delayed for 1 week. There’s a serious chassis shortage and limited appointments at the ports, and with the increasing volume of containers coming in, the congestions and delays are likely to get worse heading into January. It may take a couple of months for the congestion to clear up after the peak season.
• Felixstowe, UK - No longer accepts freight booking until further notice.
• Ocean freight booking to the UK will now be destined at London Gateway.
• Melbourne, AU - Delay: ETA 5-7 days
• Ningbo / Shanghai, China - Delay: ETD (Estimated Departure) 3-7 days

What can merchants do?

We always recommend that merchants are fully transparent with their customers so they can understand why the product they are looking to purchase is out of stock. It's best to communicate early and often when you know there might be logistics issues on the horizon. This helps build trust with your customers which is fundamental to creating a lasting brand.

In the long term, it's best to review your fulfillment strategy to understand how you can avoid these type of issues in the future. Granted, this is an unusual year with the pandemic leading to unforeseen delays, but it has also demonstrated some of the vulnerabilities in the supply chain, especially for merchants relying on manufacturing in China.

It's worth considering spreading your fulfillment network and implementing a multi-warehouse strategy. It's more affordable than you might think. With Easyship and our partners, there are no minimums for inventory and you can save money on shipping costs because your product is often closer to your customers.

If you'd like to learn more about our fulfillment services, get in touch. We're happy to help provide a quote and develop an effective strategy for transitioning.

October 23, 2020

Canada Import Tax Changes

Big news from up north: The Canada Border Services Agency (CBSA) released information regarding the Import Tax Changes from the The Canada-US-Mexico Agreement.

The release states that under the trade agreement, Canada has agreed to maintain a threshold of at least $150 for customs duties and $40 for taxes at the time or point of importation of goods shipped by courier from the US or Mexico. There are otherwise no changes to Canada’s existing de minimis framework. There are exceptions to this rule, like when tobacco products and alcohol are shipped by mail.

Shipments sent by mail from the US, Mexico or any other country will still have a customs duty and tax remission threshold value of up to $20.

These new thresholds apply as of July 1, 2020, which is when the trade agreement went into effect.

Easyship Analysis: We're starting to see some of the changes that will occur as a result of the The Canada-US-Mexico Agreement. These changes from Canada shouldn't have too much of an impact on eCommerce but then again, you never know how these things can play out. International trade will continue to be a big topic with some potential major changes in the next few years. The name of the game is agility and adaptation.

Holiday Season Warning Signs

If you’ve been following the news, you know that big things are expected for this holiday season. And by big things, we mean more online orders than ever before, with consumers feeling uneasy about visiting brick and mortar stores due to the ongoing pandemic. The problem, however, is that the supply of shipments cannot exactly meet the anticipated demand.

In a newly released trend forecast, Salesforce speculated that global demand will exceed the shipment supply by 5% at the peak, leading to increased shipping rates and higher incidences of delays, Freight Waves reported. This will hit shippers where it hurts. Retailers can expect to see $40 billion in peak season surcharges between November 15 and January 15, according to Salesforce

The problem is simple: Many of our buying habits completely changed in the pandemic, and our delivery networks cannot keep up. You might already have encountered this with week long delays on some Amazon orders or waking up at 4 a.m. to get an open slot from a grocery delivery company.

Salesforce’s findings were corroborated by GlobalTranz Enterprises LLC, a 3PL provider. GlobalTranz surveyed 150 supply chain professionals about COVID-19, and, across the board, there were concerns about meeting customer’s needs and turning profit around this year’s bigger than ever peak season.

“The economic disruption experienced in the last several months has pushed business leaders to make quick adjustments to meet new consumer demands and mitigate delivery problems,” Bob Farrell, GlobalTranz chairman and CEO, said in a statement provided to DC Velocity. “Businesses remain challenged by new demands on their supply chain and need partners that can help them solve issues around sourcing, fulfillment, and final-mile delivery.”

These renewed concerns come after FedEx and UPS have struggled for months under the weight of impulsive online orders with everyone homeward bound due to COVID that may not have happened otherwise. These couriers have already struggled through past holiday seasons. Last month, both carriers announced additional hires in the hundreds of thousands to accommodate for the expected rush, which is par for the course compared to years past.

Easyship Analysis: This will be the most unique holiday season in memory but it will not be without some challenges, and the warning signs definitely need to be heeded. The merchants and sellers that put the effort into preparing and transparently communicating to their customers about shipping deadlines will be best positioned for success.

Future of eCommerce is “New Retail”

Influence is important — but it’s not everything. Let’s not mince words. Affiliate marketing is a powerful tool. And there’s a reason why brands spent $8 billion on influencer marketing in 2019 — consumers trust people in their networks, even if it’s just a blue check.

But what’s next for retail? We’ve seen how influencer marketing has changed not only the social media landscape, but also commerce. Importantly, it’s changed the way we shop. With platforms like Instagram allowing shoppers to “Get the Look” of the influencers they like with the click of a button — no need to scroll through pages and pages of product images to find something that closely resembles the coveted outfit.

Still, the future isn’t one-size-fits all — there will be multiple revenue streams. As Gavin Baker wrote in Medium, experts have long predicted a return to form and their predictions are coming true: Brick and mortar stores in the form of DTC popups. This, of course, is in a perfect world wherein there is no pandemic or health protocols are followed so visting these sores is safe.

Still, at the root of this trend is eCommerce Giant Amazon, which began opening “Amazon Go” stores in 2019 and is on track to open 3,000 by 2021. They are specialty stores, unlike the behemoth site: A bookstore or a Whole Foods. This is comparable to DTC brands like Casper and Warby Parker having brick and mortar stores in cities. Jack ma calls this phenomenon "New Retail.”

eCommerce is King

Let’s address the elephant in the room: We are in the middle of a pandemic that has turned the way we live upside down. Since the spring of 2020 when there were widespread stay at home orders and stores closed to keep workers safe and slow the spread of the virus, the retail industry in the US has taken a hit.

While in-person sales may have been doused, eCommerce jumped in Q1 and Q2. And that’s expected to continue throughout the year through peak season. A report from PwC 65% of shoppers are concerned about catching covid while holiday shopping, Retail Dive reported.

When all is said and done, the International Council of Shopping Centers estimates that eCommerce sales will grow by 25%, following 2019’s 13% growth.

Here are the stores that have had the biggest boost due to the eCommerce surge:

• Gamestop: 800%
• Ulta: 200%+
• Kohl’s: 60%
• Macy’s: 53%

USPS Peak Season Rate Increases

ICYMI: Peak season is starting in mid-October this year. And with peak shopping season, so too comes peak shipping prices. The peak season prices will be effective from October 18th- December 27.

Clients will see the increase in pricing to USPS Domestic services, Priority Mail and First Class.

Priority Mail: all zones and weights have increased by $0.40

First Class: all zones and weights have increase by $0.25

This will also affect the following international services, as they are multi-legged and rely on USPS services to provide the first-mile domestically. Shipments less than 1 pound use First Class as the first-mile provider, while shipments greater 1 pound use Priority Mail.

But will the increases be enough to #SaveTheUSPS? It’s unlikely, according to a study from Charles River economists Debra Aron and Justin Lenzo reviewed by Freightwaves. The economists said that “above-market increases at significant lower levels” wouldn’t be enough to please the Trump administration. Instead, it would be Big. This would essentially “divert most or all of the package delivery business from the Postal Service” to other couriers like UPS. UPS would then, hypothetically, have free reign to “substantially increase their own prices and still retain the entire market,” they wrote.

Easyship Analysis: It’s been a tumultuous year for the USPS, to say the least. The combined surge from the US presidential election and the holiday season, both of which will be making use of the postal service more than usual due to health concerns associated with in-person events because of the COVID-19 pandemic.

Still, merchants can rest assured that their deliveries will arrive to customers on time provided they follow the cut-off dates, leave ample lead time and communicate clearly with their customers. Plus, it seems that USPS is bulking up its seasonal staff ahead of peak season, taking cues from carriers like FedEX and UPS.

October 9, 2020

Peak Season is Here and Its Going to be Longer Than Ever

The beginning of October used to mark the beginning of Autumn. This year it will mark something different: The start of holiday shopping season, with Amazon Prime Day scheduled for October 13-14. Typically, the major eCommerce event is held in July, but it was rescheduled due to the uncertainty around the COVID-19 pandemic.

“Amazon is creating the 75-day peak season,” Carson Krieg, cofounder and director of strategic partnerships for Convey, told Freight Waves. Amazon did not respond to the outlet’s request for comment.

This year, Prime Day is expected to bring in sales worth $26 billion worldwide and $6 billion in the US, according to Axios. This effectively pushes forward 10% of sales from Thanksgiving, Black Friday and Cyber Monday by about a month, according to the outlet.

Revenue from eCommerce stores is predicted to increase by 90%, as people report a reluctance to shop in brick and mortar stores during the pandemic. The orders placed are predicted to be a mix of delivery in-store pickup. For more on Prime Day and what it means for eCommerce merchants, click here to read our full guide

Holiday cutoffs from DHL eCommerce and USPS

DHL eCommerce and USPS have announced cutoff dates ahead of the 2020 holiday season. The full domestic and international DHL eCommerce cut offs can be viewed here and USPS in their announcement here.

We’ll be sure to keep you posted about all the new courier cut offs as theycome in. After all, no one wants to receive an all-important package — especially one containing a gift — in mid-January when their co-worker White Elephant is going to happen over Zoom in December (don’t ask how).

Easyship Analysis: The competition is going to be stiffer than ever for eCommerce merchants this peak season. But, as any experienced seller knows, the key to nailing the holiday season is prepare — more and earlier than you think you need to. Ahead of the holiday season, your shipping policy should be ready for publication. Only then can you move on to other foundational planning like fortifying tech, stocking inventory and seasonal hiring of your own. This, combined with transparent, frequent customer communication and a watchful eye on logistics news will give you a competitive edge solely by virtue of attention to detail. After all, a BOGO sale is meaningless if the products ship on January 3.

Warehouse Demand Rides the eCommerce Wave

Demand, meet supply. Between Q1 and Q2, eCommerce sales made a significant jump: 32% which leveled off to $212 billion. But perhaps that’s not so startling, as people around the world remain home due to the pandemic with nothing but a credit card and internet access. While global eCommerce merchants rejoice, it has caused a bit of a disruption in the supply chain.

With a new need to grow rapidly to meet demands during the third quarter of, a need for warehouses reached a record-high in the UK during Q3, Marketwatch reported. This 111% increase in demand (across the pond, at least) starkly contrasts the downturn seen in commercial real estate.

So, how will the warehouse employees meet new deadlines during this extended surge. Well, 61% of warehouse operators say they plan to make use of technology with which to “augment” their employees, according to a recent Warehousing Vision Study. Moreover, and perhaps less dystopic, 77% of operators agreed that in order to meet the current demands, the warehouses themselves will need to be outfitted with modern tech and equipment, per TechRadar.

At a time where many remain privileged enough to work from home amid the pandemic, the US Bureau of Labor Statistics has recorded 1.25 million warehouse workers — more than before the pandemic. What’s more, the Wall Street Journal reported that warehousing and storage payrolls added 32,000 jobs, per the most recent figures from the BLS. This comes after an additional 34,400 logistics jobs were added in August.

On the whole, employment numbers in the US remain below the pre-pandemic threshold. At its peak this year, unemployment hit 14.7% in April. In September, it dropped to 7.9%, however that’s still nearly double February's rate of 3.5%.

Easyship Analysis: The economic impact of the coronavirus pandemic will have impacts on the supply chain and logistics industry for a long time to come. There's no doubt now that the shift to eCommerce has accelerated rapidly this year with every industry adjusting and moving up their long term plans. Warehouses play an integral role in the supply chain, so the moves these companies makes can give us further glimpse of where the industry is headed.

September 25, 2020

The Holiday Shopping Season Has Already Started (and that could cause delays)

It’s not even October yet, and 50% of Americans have already started their holiday shopping online according to a survey from payment solu