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Carrier Update: Amazon Prime Day, Peak 2022 Surcharges, Shipping Delays

 

Amazon

  • For the first time, Amazon is holding its second Prime Day shipping event in a year. The move is seen as a bid to reverse declining sales. Amid Prime Membership cost increases, as high as 40% in some markets, sales have declined for 2 quarters in 2022.
  • In addition to this move, Amazon has backtracked on some logistics expansion plans. Closures and canceled openings impacted 50 facilities in the US.

Peak 2022

  • While capacity limitations were commonplace for carriers in 2020, and even 2021, many of the conditions that created them have eased. Coupled with the current economic conditions, projections are that excess capacity will exist this peak season in the carrier networks.
  • In addition, peak surcharges may encourage retailers to entice buyers early, resulting in further capacity between cyber Monday and the holidays.

Hurricane Ian

  • Although most carrier locations have resumed operations or designated alternate locations, the transit impact is still noted in several states, primarily FL, but other areas throughout the south have also seen a blip.

Around the Globe

  • Delays are reported to some international destinations for a variety of reasons. In Australia, there is a backlog in customs clearance resulting in significant delays for inbound parcels. Likewise, planned Royal Mail worker strikes in the UK, with upwards of 115,000 workers involved, may disrupt delivery flow in October and November.