2 Billion Out-of-Stock Messages
Online shoppers in October were looking for goods but instead found 2 billion out-of-stock messages according to an Adobe Analytics study. That is quadruple what it was in October of 2019. In November of this year, the out-of-stock messages surged 258% compared to November of 2019. The discounts offered were also lower than previous years.
The highest out-of-stock items were:
- Electronic goods
- Home and Garden
- Pet Products
It isn’t only online stores that have empty shelves. However, many businesses have tried to beef up their in-store inventory ahead of the holidays. Some are anticipating more in-person shoppers this year as consumers may be nervous about product shipping times. People can also look for alternatives easier in person if they face out-of-stock messages about what they were originally looking for.
Shipment congestion in ports has been making headlines but it also is translating into warehouse issues as well. Warehouse space was already scarce and now is in even more demand. Warehouse vacancy has reached a record low at 3.6% according to CBRE. This is so low that it really isn’t efficient. You need to have a little bit of availability to operate smoothly. Just like a lot of other price increases we are seeing, warehouse rent has gone way up. The net asking rent is at a record $8.92 per square foot. That is a 10.4% annual increase. This is likely to be an issue in 2022 and 2023.
As a result of the shortage of warehouse space, storage trailers are also extremely hard to find. Shippers and manufacturers are ordering more overseas products ahead of time to combat the congestion and delays on container shipments. Storage trailers have been a useful method to keep additional stock on-site without overcrowding their facilities. However, trailer manufacturers are unable to fulfill their orders which is compounding the issue and creating a rise in the cost of both new and used trailers.
What’s New in Trucking Sustainability
There has been a lot of build-up and talk around electric vehicle (EV) growth in the commercial truck and van space. And while there are some recognizable names such as Tesla, Volvo, Freightliner, Peterbilt, Mack, etc., there are some original equipment manufacturer (OEM) newcomers on the market. There are certainly some challenges ahead and EV adoption is still very low. But that doesn’t mean it isn’t coming. Daimler Trucks North America had vowed to have carbon-neutral truck lineups by 2039. And Volvo Trucks North America is aiming for the same by 2040. It will be interesting to see how these zero-emissions technologies compare as more players join in the game.
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