UPS Inc. and packaging giant Sealed Air Corp. said they have teamed up to help shippers streamline their packaging processes and reduce shipping costs, a task that has taken on more importance in light of recent moves by UPS and rival FedEx Corp. to make it more costly to ship parcels that contain excess packaging.
The announcement, made Monday, formalizes a partnership that began in 2015. UPS customers will gain access to package-engineering intelligence through Sealed Air's "Packaging Application Centers," which provide design, testing, and packaging performance analysis at 27 global locations. Sealed Air will offer packaging systems and materials to small to mid-size UPS shippers through the Atlanta-based transport and logistics company's "Customer Technology Program" (CTP), which connects those UPS customers to an array of its vendors. Sealed Air will also open a customer showroom in early 2017 on the Louisville campus of UPS Supply Chain Solutions, a UPS unit.
The initiative will initially focus on leveraging Sealed Air products and services in the "package filler" segment, which addresses issues involving parcel integrity and damage prevention, said Glenn Zaccara, a spokesman for Atlanta-based UPS. Sealed Air also offers services that focus on package size and design, both of which affect a parcel's dimensional weight and, by extension, the formula used by UPS and other carriers to price delivery services based on a parcel's dimensions rather than its actual weight.
UPS, its chief rival, Memphis-based FedEx Corp., and other parcel-delivery firms have pushed shippers for years to streamline their processes to reduce surplus packaging embedded around the goods. UPS and FedEx claim that bulky, high-cube parcels occupy a disproportionate amount of space aboard vans and truck trailers. For this reason, FedEx and UPS have expanded the universe of parcels subject to pricing based on their dimensions, a more costly formula than pricing parcels based on their actual weight.
Despite those efforts, the carriers are still struggling with an increase in package cube, a problem that has been exacerbated by the explosive growth of e-commerce and the resulting increase in parcel traffic. According to consultancy eMarketer Inc., worldwide e-commerce sales will reach $1.92 trillion in 2016 and exceed $4 trillion by the end of 2020. A forecast by global technology company Pitney Bowes Corp. said parcel shipping volumes from 12 major countries, including the U.S., will grow 5 to 7 percent annually from 2016 to 2018, paced by growth in cross-border shipping.
In addition, as online ordering expands to include a broader range of products, carriers are straining to handle items like kayaks and ping pong tables, which their infrastructures were not designed for. FedEx Ground, FedEx's ground-delivery unit, which ships much of the company's domestic e-commerce volume, is close to running out of capacity due to sheer volume and an increase in orders of outsized commodities, according to a person familiar with the matter.
Ken Chrisman, president of Sealed Air's product care division, said in an e-mail that the e-commerce surge has led many retailers and carriers to opt for a "one size fits all" approach to packaging practices, which leads to what Chrisman called "too-big boxes stuffed with fillers. "The repetitive 'stuff-fill-repeat' model is fast, simple, and requires minimal training, but is an inefficient use of resources," he said.
An objective of the UPS partnership is to "dispel the notion" that cost and speed have to be sacrificed to gain package efficiency, Chrisman said in an e-mail. "It's entirely possible to minimize packaging material while still providing appropriate protection against damage and without slowing down packaging speed," he said. Smarter packaging practices can also be more affordable without compromising package integrity or packaging velocity, he added.
Sealed Air is perhaps best known for its 1960 invention of the ubiquitous "Bubble Wrap" packaging.
Nearly one-third of American consumers have increased their secondhand purchases in the past year, revealing a jump in “recommerce” according to a buyer survey from ShipStation, a provider of web-based shipping and order fulfillment solutions.
The number comes from a survey of 500 U.S. consumers showing that nearly one in four (23%) Americans lack confidence in making purchases over $200 in the next six months. Due to economic uncertainty, savvy shoppers are looking for ways to save money without sacrificing quality or style, the research found.
Younger shoppers are leading the charge in that trend, with 59% of Gen Z and 48% of Millennials buying pre-owned items weekly or monthly. That rate makes Gen Z nearly twice as likely to buy second hand compared to older generations.
The primary reason that shoppers say they have increased their recommerce habits is lower prices (74%), followed by the thrill of finding unique or rare items (38%) and getting higher quality for a lower price (28%). Only 14% of Americans cite environmental concerns as a primary reason they shop second-hand.
Despite the challenge of adjusting to the new pattern, recommerce represents a strategic opportunity for businesses to capture today’s budget-minded shoppers and foster long-term loyalty, Austin, Texas-based ShipStation said.
For example, retailers don’t have to sell used goods to capitalize on the secondhand boom. Instead, they can offer trade-in programs swapping discounts or store credit for shoppers’ old items. And they can improve product discoverability to help customers—particularly older generations—find what they’re looking for.
Other ways for retailers to connect with recommerce shoppers are to improve shipping practices. According to ShipStation:
70% of shoppers won’t return to a brand if shipping is too expensive.
51% of consumers are turned off by late deliveries
40% of shoppers won’t return to a retailer again if the packaging is bad.
The “CMA CGM Startup Awards”—created in collaboration with BFM Business and La Tribune—will identify the best innovations to accelerate its transformation, the French company said.
Specifically, the company will select the best startup among the applicants, with clear industry transformation objectives focused on environmental performance, competitiveness, and quality of life at work in each of the three areas:
Shipping: Enabling safer, more efficient, and sustainable navigation through innovative technological solutions.
Logistics: Reinventing the global supply chain with smart and sustainable logistics solutions.
Media: Transform content creation, and customer engagement with innovative media technologies and strategies.
Three winners will be selected during a final event organized on November 15 at the Orange Vélodrome Stadium in Marseille, during the 2nd Artificial Intelligence Marseille (AIM) forum organized by La Tribune and BFM Business. The selection will be made by a jury chaired by Rodolphe Saadé, Chairman and CEO of the Group, and including members of the executive committee representing the various sectors of CMA CGM.
The global air cargo market’s hot summer of double-digit demand growth continued in August with average spot rates showing their largest year-on-year jump with a 24% increase, according to the latest weekly analysis by Xeneta.
Xeneta cited two reasons to explain the increase. First, Global average air cargo spot rates reached $2.68 per kg in August due to continuing supply and demand imbalance. That came as August's global cargo supply grew at its slowest ratio in 2024 to-date at 2% year-on-year, while global cargo demand continued its double-digit growth, rising +11%.
The second reason for higher rates was an ocean-to-air shift in freight volumes due to Red Sea disruptions and e-commerce demand.
Those factors could soon be amplified as e-commerce shows continued strong growth approaching the hotly anticipated winter peak season. E-commerce and low-value goods exports from China in the first seven months of 2024 increased 30% year-on-year, including shipments to Europe and the US rising 38% and 30% growth respectively, Xeneta said.
“Typically, air cargo market performance in August tends to follow the July trend. But another month of double-digit demand growth and the strongest rate growths of the year means there was definitely no summer slack season in 2024,” Niall van de Wouw, Xeneta’s chief airfreight officer, said in a release.
“Rates we saw bottoming out in late July started picking up again in mid-August. This is too short a period to call a season. This has been a busy summer, and now we’re at the threshold of Q4, it will be interesting to see what will happen and if all the anticipation of a red-hot peak season materializes,” van de Wouw said.
The report cites data showing that there are approximately 1.7 million workers missing from the post-pandemic workforce and that 38% of small firms are unable to fill open positions. At the same time, the “skills gap” in the workforce is accelerating as automation and AI create significant shifts in how work is performed.
That information comes from the “2024 Labor Day Report” released by Littler’s Workplace Policy Institute (WPI), the firm’s government relations and public policy arm.
“We continue to see a labor shortage and an urgent need to upskill the current workforce to adapt to the new world of work,” said Michael Lotito, Littler shareholder and co-chair of WPI. “As corporate executives and business leaders look to the future, they are focused on realizing the many benefits of AI to streamline operations and guide strategic decision-making, while cultivating a talent pipeline that can support this growth.”
But while the need is clear, solutions may be complicated by public policy changes such as the upcoming U.S. general election and the proliferation of employment-related legislation at the state and local levels amid Congressional gridlock.
“We are heading into a contentious election that has already proven to be unpredictable and is poised to create even more uncertainty for employers, no matter the outcome,” Shannon Meade, WPI’s executive director, said in a release. “At the same time, the growing patchwork of state and local requirements across the U.S. is exacerbating compliance challenges for companies. That, coupled with looming changes following several Supreme Court decisions that have the potential to upend rulemaking, gives C-suite executives much to contend with in planning their workforce-related strategies.”
Stax Engineering, the venture-backed startup that provides smokestack emissions reduction services for maritime ships, will service all vessels from Toyota Motor North America Inc. visiting the Toyota Berth at the Port of Long Beach, according to a new five-year deal announced today.
Beginning in 2025 to coincide with new California Air Resources Board (CARB) standards, STAX will become the first and only emissions control provider to service roll-on/roll-off (ro-ros) vessels in the state of California, the company said.
Stax has rapidly grown since its launch in the first quarter of this year, supported in part by a $40 million funding round from investors, announced in July. It now holds exclusive service agreements at California ports including Los Angeles, Long Beach, Hueneme, Benicia, Richmond, and Oakland. The firm has also partnered with individual companies like NYK Line, Hyundai GLOVIS, Equilon Enterprises LLC d/b/a Shell Oil Products US (Shell), and now Toyota.
Stax says it offers an alternative to shore power with land- and barge-based, mobile emissions capture and control technology for shipping terminal and fleet operators without the need for retrofits.
In the case of this latest deal, the Toyota Long Beach Vehicle Distribution Center imports about 200,000 vehicles each year on ro-ro vessels. Stax will keep those ships green with its flexible exhaust capture system, which attaches to all vessel classes without modification to remove 99% of emitted particulate matter (PM) and 95% of emitted oxides of nitrogen (NOx). Over the lifetime of this new agreement with Toyota, Stax estimated the service will account for approximately 3,700 hours and more than 47 tons of emissions controlled.
“We set out to provide an emissions capture and control solution that was reliable, easily accessible, and cost-effective. As we begin to service Toyota, we’re confident that we can meet the needs of the full breadth of the maritime industry, furthering our impact on the local air quality, public health, and environment,” Mike Walker, CEO of Stax, said in a release. “Continuing to establish strong partnerships will help build momentum for and trust in our technology as we expand beyond the state of California.”