Amazon warehouse bursts ahead of schedule! 200,000 containers piled up at ports

Amazon warehouse bursts ahead of schedule! 200,000 containers piled up at ports

According to foreign media reports, as of October 18, there are about 200,000 containers of goods piled up near the coast of Los Angeles! Many of them are shipped to e-commerce platforms such as Amazon and Target, and more than a quarter of them have been piled up for at least 13 days!

The person in charge of the port said that although the Biden administration recently required the port to operate a 24-hour shift system to handle cargo non-stop, the capacity gap has not been alleviated, especially the urgent shortage of truck drivers. Many cargoes have been waiting for more than ten days without a driver to transport them. In addition, it is currently the last few months of 2021, which is a crucial peak season for traditional e-commerce and a period when consumers are in urgent need of various seasonal and daily products. The work of alleviating the backlog of containers is urgent, and the port is currently giving priority to seasonal cargo that needs to leave the port as soon as possible.


The congestion at the port is caused, on the one hand, by a shortage of various jobs, including a lack of skilled dock workers, truck drivers and railroad workers to load and unload containers. Port officials said this largely reflects a shortage of workers caused by the Delta variant, but also a shortage of drivers, especially truck drivers, due to retirement.


Another reason is that consumers have become more pragmatic in their spending since the pandemic, reducing their travel and entertainment budgets to buy necessities. According to data, Americans are spending more and more money on shopping rather than going on vacation or eating out. Overall, demand for consumer goods is 22% higher than before the pandemic (February 2020 vs. August 2021). The arrival of important holidays such as Black Friday, Cyber ​​Monday and Christmas has also significantly increased the transportation volume of festive supplies and daily necessities.


What’s even more terrible is that it’s not just the ports that are experiencing problems; Amazon’s warehouses are also a cause for concern.


Amazon faces massive labor shortage


A recent survey by an overseas data agency shows that the number of workers willing to take on the usually hard work has greatly decreased, and the phenomenon of workers leaving the warehouse industry is very common. Due to the widespread shortage of products and transportation delays, the pressure on workers and delivery personnel in major warehouses in the United States has increased, resulting in many workers leaving, especially Amazon and Walmart, the two retail giants.



Amazon has taken emergency measures to expand warehouse worker positions twice in a month. Amazon said on Monday that they will recruit 150,000 seasonal employees in the United States to cope with the holiday shopping peak. Less than a month ago, Amazon just announced the expansion of 125,000 permanent and seasonal jobs. This shows that despite the large number of recruitments last month, the labor gap is still large. In comparison, at this time last year, Amazon only recruited 100,000 warehouse positions, which has more than doubled this year. This gap is a bit scary.

The average starting salary for these positions is $18 per hour, and they are responsible for loading, picking, packing, and shipping in Amazon's distribution network. In addition, the company offers a $3,000 signing bonus in some areas, as well as an additional $3 per hour. Faced with a tightening labor market, Amazon has introduced incentives such as signing bonuses and free college tuition. With such conditions and such a large gap, this year's peak season is expected to be difficult, and the warehouse explosion will be more serious than at any time in previous years.


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