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1/23/23 Monday Parcel News Update

Jan 23, 2023

2 min read

1. Amazon Sellers Can Bid for Additional Storage With New Capacity Management System

Amazon is making moves to increase productivity within their warehouses, and a large part of that is competitively pricing storage fees and rewarding sellers of fast-moving products. Starting March 1, 2023, Amazon will introduce a new capacity management system that allows third-party Fulfillment by Amazon (FBA) sellers to bid for additional storage space. Extra storage goes to the highest bidder of a per-cubic-foot reservation fee. “Performance credits” offset up to 100% of the fees, meaning the extra capacity won’t cost merchants if their products are selling at a high enough rate.

Article from Max Garland, Supply Chain Dive.

 

2. Warehousing and Fulfillment Rents Expected To Raise in 2023

On a similar note, logistics real estate company Prologis’ leadership are expecting logistics rent prices across the market to rise in 2023. In 22Q4, Prologis’ warehouses held a 98% occupancy rate. With little available space and high demand, they’re predicting warehousing rents to rise 10% in the U.S. this year, and 9% globally.

Article from Todd Maiden, FreightWaves.

 

3. UPS Releasing Q4 Results January 31

UPS will announce their Q4 earnings and results on Tuesday, January 31, per a release from the company. CEO Carol Tomé and CFO Brian Newman will lead the investor conference call, which is open to the public via a webstream.

Release from UPS.

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