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.