According to the company’s planning documents, the UK arm of the retail company is expected to place orders with customers at least four weeks before Christmas due to the global supply crisis. Even prime customers, who pay for fast delivery, may experience some delays with their order.
“We’re trying to change the big push of orders before mid-December,” said a source familiar with Amazon’s operations. “Despite our resources, it is difficult to estimate the level of supply disruption we are facing. This is going to be a long, arduous road for a new normal and air freight.
Reminders will start with “Quick Shopping” banners on its site and app, before the email campaign as it tries to move most of the Christmas orders to the end of November, the second and third weeks of December. I compared it to the usual peak.
The online store, like other businesses, is plagued by global supply chain disruptions that threaten economic recovery after epidemics. G7 leaders pledged on Wednesday that they would join forces in resolving issues facing global trade.
Pictures of queues outside the world’s largest ports illustrate the scale of the problem. Nevertheless, some of the issues that challenge the UK are specific to the UK, the planning document says.
Its perspective on the depth and longevity of the supply crisis is particularly important, as according to the company’s own internal estimates, Amazon accounted for more than a third of the UK’s online retail activity this year. As one of the world’s largest companies in terms of revenue, it is confident that supply shortages and port constraints will go well by 2022, a disturbing signal for global growth. Furniture retailer Ikea has taken a look at this.
The shortage of UK HGV drivers, exacerbated by changes in the UK’s post-Brexit immigration and tax laws, has stopped Amazon and other companies from fighting backlogs at container ports. Rising demand amid tensions over delivery networks has also made it difficult to secure warehouse space.
“Ports are capable of moving ships and loading and unloading ships. The problem is moving goods to the port. Major Ports Group chief executive Tim Morris said.. “We have to manage the storage space very carefully. Problems start when it fills up.”
Amazon’s planning document illustrates how companies that have enough money to invest in high-tech logistics capabilities can’t avoid queuing at ports. In the company’s view, there is not even enough transportation, so that orders can be routed through large quantities by air freight to minimize the impact of other transportation problems, although it is used to deliver prime orders. It will be done in an effort to achieve the goals.
Amazon noted that requests for planning permission for more warehouse space have also been blocked by the delay of the Covid 19. And despite being offered higher wages, Amazon, like other firms, is struggling to recruit enough warehouse workers for its operations.
The only person familiar with the company’s operations said Amazon’s UK management was concerned. Negative reports The working conditions in the company’s warehouses made it difficult to recruit additional staff.
An Amazon spokesman declined to comment on the details of the planning document but noted that the company was recruiting 20,000 temporary positions across the UK “during the festive season”.
He added that they provide a safe environment for workers and that “competitive wages start between £ 10 and 11. 11.10 per hour depending on location”.
The planning document also notes that some estimates of when the disruptions in the supply chain will be reduced were very optimistic.
At an August meeting of central bankers in Jackson Hole, Wyoming, Jerome Powell, chairman of the US Federal Reserve, said “supply issues are beginning to be resolved” and suggested that this pressure, which is a major factor in board rooms Have become a concern. The world will soon be easier.
However, that has not been proven, with US President Joe Biden announcing on Wednesday that the port of Los Angeles is a 24/7 operation. To deal with the crowd. The demand for paint-up after epidemics has been met with limited capacity. Delivery, Amazon plans, and, according to outside experts, to increase costs in the market, which often takes at least two years to increase capacity.
“We have a stock backup for weeks,” said Phil Chaseworth, managing director of Midland Pallet Trucks, an industrial equipment supplier. “Containers arriving this week will no longer be delivered until November. That’s terrible.”
The cost of shipping containers has risen sharply, which could have cost the ship 3 3,000 before the outbreak, which is now 20,000. “In our opinion, a container can only cost £ 36,000,” said Mr Chaseworth.
Mr Chaseworth said some of the Midland’s cargo was stuck in China because shipbuilding firms were opting for lighter cargo, which was more profitable for the ship. “We are behind the line.” Warehouse problems have increased the bill.
Small high street retailers are also feeling the pain.
Kenny Keniko, owner of the London Tree House in Notting Hill, London, said he had waited two months in some cases for stocks to arrive, while toy prices had risen.
He told Free: “Things have been hard to get – when I get it I get what I want, but it goes too fast and it’s hard to get it back. It takes up to two months, and some things have not yet reached the big companies.
He said: “I am a small shop. I have to cater to a wide range of children. I do not have space to store so I only order as many small quantities as I can. I try to order, but you can’t figure out how much you need.
Representatives at the port of Felix Stowe, which accounts for 36% of the UK’s freight container traffic. Free Containers spent an average of 10 days at the site, which is double the average before the epidemic.
Meanwhile, data from shipping statistics company Project 44 shows that some containers from China to Europe are delayed by up to 30 days.
Josh Brazil, Vice President, Supply Chain Insights at Project 44, said: Department of Transportation
“These supply chain problems are not going away, as maritime delays are getting worse, and rising cargo prices mean ships will not be able to buy their way.
According to container tracking data, the reliability of maritime carrier schedules continues to decline, with the worst-affected China-EU routes delayed by 30 days and China-US west coast routes delayed by 21.94 days in September. At the same time, Mr Brazil added: “If these conditions continue, we will see many empty shelves for the holiday shopping season and beyond.”
Additional reporting by Ben Chapman, Holly Bancroft and Chiara Giordano.