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- Warehousing - Market Currents #4
Warehousing - Market Currents #4
Freight Trends
October 07, 2024
Table of Contents
This Month’s Topic: Warehousing
The global warehousing market is projected to grow at about 8% through 2030, with North America accounting for the largest revenue generation and 31.3% of the entire warehousing market.
But it’s more than just finding a safe place to keep your stuff.
Our Outlook
From Elliot:
The future of warehousing is shaped by automation and innovative technology—trends designed to empower, not replace, human workers. Repetitive tasks like sorting, picking, and transporting materials are being automated, rapidly transforming operations. Autonomous mobile robots (AMRs) are being deployed to make processes faster and more accurate, showcasing the advanced capabilities of modern warehouse technology. Watching these AMRs at work also makes one feel a bit like we’re in the future!
An ideal future of warehousing integrates the Internet of Things (IoT) for smarter inventory management and real-time data visibility. Technologies like Augmented Reality (AR) tools, such as smart glasses, guide workers in picking items, improving productivity and reducing errors. Over time, robots will take on much of the physical workload, allowing workers to focus on higher-value tasks like quality control and process optimization. Upskilling initiatives are crucial to help employees adapt to new technology, enhancing job satisfaction and creating new career opportunities.
Warehousing is yet another area of the logistics industry undergoing rapid transformation through exciting new technology. With a deliberate focus on enhancing the nature of human work rather than eliminating it, the future of warehousing looks bright for both efficiency and employee empowerment.
From Curtis:
When I think about warehousing - it’s less from a point of storing product, and more from the perspective around what that unlocks with consolidation and cross-docking.
When a warehouse location - big or small - becomes a launch site for more efficient transportation strategies - I believe that is the holy grail of freight efficiency. Clean, safe storage space is required however building the tools and layers on top of that to sort, assemble, and quantify the freight going out the door and into freight carrier’s trailers is what will set your company apart.
Process:
Having the flow of product, then freight, that’s right for you and your carriers won’t be found accidentally. With the average warehouse having millions of available cubic feet for storage (floor to ceiling), and 10’s of thousands of potential touch points, the design, configuration, and utilization of your warehouse needs to be process driven, data let, and well designed for happiness and flow.
Tools:
Technology…the right ERP, WMS, tech stations, and communication flow is key.
Hardware…forklifts, scales, stretch wrap machines, dimensioners, scanners, label printers, safety gear (camera’s, trailer wheel locks) - all of these items are definitely a financial investment, however will pay dividends to your internal costs as well as external partnerships.
Space:
The warehouse staging floor transforms into another form of trucking capacity during the portion of the shipping timeline which falls after tendering, but before pick-up.
Having the space to stage and organize your freight without there being damage or loss concerns present seems like common sense - and is - but brings with it a noticeable boost in value for that critical first step of shipping. It also reduces complexity and chaos involved with loading carriers timely and accurately.
Nailing your MEW (minimally effective warehouse) is not something to be taken lightly - however doing so means you’ll have an impressive asset to point towards your business goals that many of your competitors just won’t have taken as seriously.
The opinions expressed in the content of this newsletter are solely our own. They do not reflect the views of any affiliated organizations or partners and should be considered as individual perspectives offered for informational purposes only.
Companies & Jobs in Warehousing
Jobs
Systems Engineer - Warehouse Management
Data Warehouse Architect
Warehouse Administrative Assistant
Senior to Staff Solutions Architect
Parcel Analyst
Greenscreens.ai September 2024 Update
Greenscreens.ai September 2024 - National Carrier Spot Rate and YoY Market Trends
Takeaways
Downward trends in pricing continue. Van (-5.6%), Reefer (-2.4%), and Flatbed (-3.8%).
Year-over-year values indicate stronger negative values. Van (-6.9%), Reefer (-4.0%), and Flatbed (-5.1%).
Southeast are showing the greatest weakness in Van and Reefer rates at -7% to -10.5% relative to 2024 H1 baselines.
Outlook
Pricing continues to decline with downward trends across all modes compared to 2H1 baselines: Van (-5.6%), Reefer (-2.4%), and Flatbed (-3.8%) Year-over-year comparisons indicate stronger negative values because stronger prices in September 2023, with Van (-6.9%), Reefer (-4.0%), and Flatbed (-5.1%).
South and Southeast are showing the greatest weakness in Van and Reefer rates at -7% to -10.5% relative to 2024 H1 baselines.
The downward trend in these regions is somewhat unexpected, however, given the political and economic uncertainties ahead, they are not too surprising. These results support the common industry outlook of a weak to flat Q4 ahead with optimism returning in 2025.
For more information, check out Greenscreens.ai.
Latest from Freight Trends
Sierra had the chance to chat with Rich from Warehowz, and you can read that interview below.
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Sincerely,
The Freight Trends team
(Curtis, Elliot, Sierra, & Matt)