Stord Acquisitions, Rail Gains, and Amazon's Hiring Wave

Stord Acquires AMS Fulfillment

Stord has announced its acquisition of AMS Fulfillment, a move that adds over one million square feet of space to its network, including key hubs in Los Angeles, Salt Lake City, and Philadelphia. This acquisition, which includes AMS’s advanced automation and put-wall technologies, significantly bolsters Stord's capabilities in the premium beauty and wellness sectors.

Why it matters: For brands using smaller 3PLs, this signals continued consolidation in the market. If you are a brand owner, ensure your current provider is keeping pace with the technology and footprint of larger competitors.

The Shift from Trucking to Rail

As trucking bid season approaches, major carriers like Knight-Swift are signaling intentions to push for double-digit rate increases. Meanwhile, railroads including Union Pacific, Norfolk Southern, and CSX are reporting profit growth, supported by a distinct rise in domestic intermodal volumes as shippers seek alternatives to high-cost truckload transit.

Why it matters: If your freight contracts are expiring soon, expect aggressive pricing from truckload carriers. Diversifying your strategy by testing intermodal options can provide vital leverage during renewal negotiations.

Amazon’s Massive Seasonal Workforce Push

Amazon has initiated its seasonal hiring drive, seeking 300,000 workers for its fulfillment network. Starting in 2027, the company will introduce day-one healthcare for seasonal staff working at least 30 hours a week, a move that heightens competition for labor in local markets already vying for talent.

Why it matters: If you rely on seasonal labor or staffing agencies, you are competing directly with Amazon’s massive hiring incentives. Evaluate your own non-wage benefits and operational efficiency to remain an attractive employer.

Port Volumes Hit Historic Highs

The Ports of Los Angeles and Long Beach just experienced their busiest month in over a century. This surge in volume has negatively impacted dwell times, with local truck-bound containers sitting for over three days and rail-bound containers facing delays exceeding seven days.

Why it matters: High dwell times mean slower inventory replenishment. Brands should factor these port delays into their holiday planning and safety stock calculations to avoid stockouts.

Automation and Security Updates

UPS has reached a milestone with 68.5% of its U.S. volume moving through automated facilities, resulting in significant cost reductions and a continued shift away from manual processes. Simultaneously, a security vulnerability has been identified in wireless barcode scanners, where a lack of authentication between the scanner and base station could potentially allow unauthorized access to warehouse computer systems.

Why it matters: Automation increases the need for high-quality packaging and labeling to avoid automated sorting errors. Furthermore, verify your warehouse IT security to ensure your wireless scanners are properly segmented from critical WMS networks.

Trade and Ocean Freight Signals

Canadian trade tariffs are undergoing legal challenges and government modifications, affecting a range of products from flooring to cocoa powder. Meanwhile, ocean carriers are canceling sailings to artificially prop up rates, even as the global container ship orderbook remains at record levels.

Why it matters: Supply chain managers importing from Asia must prioritize early bookings and maintain close communication with forwarders to navigate potential sailing cancellations.

What to Watch Next

• Rate Negotiations: Monitor how aggressively regional carriers match the national carriers' bid for double-digit hikes.
• Labor Retention: Watch for how non-Amazon warehouses adjust their benefits packages to keep staff through the peak season.
• Dwell Times: Keep an eye on port congestion metrics as we approach the height of the holiday shipping season.

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