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1/23/23 Monday Parcel News Update

by Grayson Gilbert

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.

Grayson Gilbert

Grayson is the Marketing Specialist at Sifted. He leads our earned media efforts, podcast production, and review generation, all the while tracking industry news for our team and clients. His media relations skills have landed Sifted’s thought leaders in top publications like FreightWaves, Supply Chain Dive, PARCEL Magazine, and Yahoo! Finance. Connect with Grayson on LinkedIn here.
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