Amazon, the giant of eCommerce, has been investing in logistics technology for years—a commitment that has even made it the subject of online memes. However, these efforts have resulted in a fleet of more than one million robots currently operating in its distribution centers worldwide. As the company has explained on several times, these robots—including units equipped with artificial intelligence (AI) technology—have transformed the way products are managed and customer needs are met.

However, all of these advancements have come hand in hand with an extensive and profound controversy regarding the future of employment on a global scale.

According to internal documents reviewed by The New York Times, Amazon intends for its advancements in automation to allow it to avoid hiring more than 600,000 people by the year 2033, even if it doubles its sales volume. This efficiency goal places Amazon at the forefront of a massive workforce restructuring, while also positioning it at the center of the current debate about replacing humans with machines in corporate environments.

For these reasons, we believe it is appropriate to review Amazon’s latest technological innovations—including the recently unveiled Blue Jay and Project Eluna systems—which are enabling this transformation, and to analyze the company’s strategy for managing the impact of automation.

Let us proceed.

The Robots that Move Amazon’s Warehouses

Kiva Robots: The Predecessor Robot

Long, long ago (2012), in a land far, far away (California), Amazon deployed for the first time the Kiva Robots, devices resembling an orange Roomba powered by an excessive amount of steroids.

These robots were so striking, and so drastically changed the traditional concept of warehouse management, that their image quickly went viral, giving rise to frights marvels such as this waltz, or this dance set to The Nutcracker Suite music, both recorded when Kiva was still an independent company and not part of the eCommerce giant.

Kiva has belonged to Amazon for 11 years (the company acquired it for $775 million), and although more than 200,000 of these units are still operating within its warehouses, they are by no means the most advanced technology in this field possessed by Jeff Bezos’ company in the area of robo-logistics.

Proteus, Cardinal, and Sparrow

Proteus was Amazon’s first fully autonomous mobile robot, utilizing computer vision and machine learning to operate safely alongside employees in logistics centers and to optimize operational efficiency.

This robot was designed to perform its tasks independently and to move among employees, enabling what Amazon calls a “simple and safe interaction between technology and people.” Proteus is by no means the only robot in Amazon’s arsenal; Cardinal and Sparrow are two robotic handling systems that play a vital role in sorting and picking packages in the company’s distribution centers—robotic arms essential for the sorting and picking of items.

However, logistical efficiency extends beyond the mere handling of packages. Amazon has introduced the concept of “Container Storage” in its operations, in which robots are used to deliver products to employees in a more ergonomic manner.

• In fact, Proteus and Cardinal are used together. Proteus is a robotic system that autonomously transports carts full of packages, and its main function is to move these carts from the outbound dock to the delivery trucks. Cardinal is responsible for loading packages onto specific carts: those packages that share the same zip code are grouped to expedite their subsequent shipment.
• Sparrow, for its part, is a robotic handling system operating in a facility in San Marcos, Texas. Its primary function involves automatically selecting and sorting hundreds of thousands of customer orders. It is a robotic arm that picks items from one container and places them in separate containers.

Digit, the Humanoid Robot

In 2023, Amazon unveiled Digit, its futuristic humanoid robot, designed to efficiently perform repetitive tasks with remarkable agility—and a touch of elegance. These androids were created by Agility Robotics, a company in which Amazon itself is an investor, following the same model as the Kiva acquisition years earlier.

According to the company, Digit is limited to repetitive tasks: “Digit can move, grasp, and manipulate items in warehouses in novel ways. Its size and shape make it a good fit for buildings designed for humans, and we believe there is a significant opportunity to scale a mobile manipulator solution, such as Digit, that can collaborate with our employees. Our initial use of this technology will be to assist employees with container recycling: a highly repetitive process of picking up and moving empty containers once inventory is completely removed.”

The potential of Digit is enormous. Agility Robotics has established its first production center for this type of humanoid unit, capable of producing up to 10,000 Digits per year—a task in which, interestingly enough, Digit units themselves are involved.

Sequoia: Amazon’s Robotic System Concept

In addition to these units, Amazon launched Sequoia in 2023, a new robotic system aimed at assisting in fulfilling customer orders during key shopping events of the year.

“We have restructured our method of storing and managing inventory so that Sequoia can help us fulfill customer orders with greater speed and accuracy, while simultaneously enhancing employee safety within our facilities. Sequoia allows us to identify and store inventory received in our logistics centers up to 75% faster than what we are currently able to do. This means we can post items in our store more swiftly, benefiting both sellers and customers. When orders are placed, Sequoia also reduces the time required to process them in the logistics center by up to 25%,” the company explained at the time.

Sequoia integrates mobile robots, gantry crane systems, robotic arms, and a state-of-the-art ergonomic workstation designed to facilitate inventory management within containers. The mobile robots are responsible for transporting items in containers, delivering them directly to a gantry crane. This crane has the capability to restock containers as well as send them to staff members assigned to selecting products requested by customers.

Once the items required by customers are retrieved from inventory, the task of regrouping the remaining inventory within the containers must be performed. At this stage, Sparrow comes into play, undertaking the repetitive task of organizing products within containers, ensuring that, once filled, they are returned to their respective storage locations efficiently and seamlessly.

Vulcan: A Robot with a Sense of Touch

Vulcan is among the latest additions to Amazon’s robotic fleet. This robot uses physical AI and force sensors to handle items with delicacy and precision. Its design is focused on worker ergonomics, as it assumes the tasks of stacking and retrieving goods from upper shelves (approximately 2.4 meters high) and from the floors of containers, eliminating the need for workers to use ladders.

Unlike traditional industrial robots, which lack sensitivity, Vulcan employs force feedback sensors in its arm and tools so that it can precisely detect when and how it touches an object, thereby avoiding damage. It is equipped with a dual tool: a spatula that allows it to push and “create space” between densely packed items in containers, as well as paddles (clamps) that adjust the gripping force depending on the product’s size and fragility, thus being able to handle approximately 75% of all item types.

The Latest Generation: Speed and Cognitive Assistance

If this already seemed remarkable, the most recent innovations (presented only recently) mark the culmination of Amazon’s robotics and AI strategy at the finish line of last-mile delivery. Enter Blue Jay and Eluna.

Blue Jay

Amazon has introduced Blue Jay as the latest evolution in robotic handling, engineered for maximum efficiency and ergonomics. This new model coordinates multiple robotic arms to conduct concurrent tasks, successfully combining three separate robotic stations into a single optimized workspace that can simultaneously pick, stack, and consolidate items.

According to the company, it reduces repetitive reaching and lifting tasks, allowing employees to work within their ergonomic “power zone.” Its development was accelerated thanks to AI and the use of “digital twins.” It will become a key technology for same-day delivery centers, expediting the process for the customer.

Project Eluna

Project Eluna constitutes a breakthrough in operational intelligence by incorporating agentic AI, a system designed to reason through complex operational situations and act autonomously in order to recommend solutions. In this way, it functions as a “cognitive teammate” for operations managers, reducing mental workload. Furthermore, it can collect both historical and real-time data from throughout the warehouse to anticipate bottlenecks and failures.

Its integration with Amazon’s logistics systems enables operators to pose complex questions and receive clear, data-driven recommendations. The objective: to transition from reactive management to operational forecasting.

Against the backdrop of this entire robotic landscape, Amazon emphasizes that technology serves to enhance the work environment. By delegating heavy and repetitive tasks to machines, the company explains that it has trained more than 700,000 employees in technical skills since 2019, ensuring that its most advanced centers require up to 30% more employees in maintenance, reliability, and engineering roles. Robotics and AI are regarded as tools to make work “safer, smarter, and more rewarding.”

Only time will tell if employees share this perspective.

Images: Amazon

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We were aware that the return of Donald Trump would have far-reaching consequences for the entire world and across all sectors. Now, with the tariff war somewhat subsiding, we are beginning to see how this is impacting an area we discuss with you every day: commerce.

And the key word is “minimis.”

After years in which the tariff exemption known as de minimis enabled millions of low-value transactions, Donald Trump’s new executive order has brought this system to an end. Effective August 29, 2025, every package entering the United States, regardless of its value or country of origin, will be subject to tariffs and much stricter customs procedures.

Unsurprisingly, this is causing a minor earthquake at the logistical level.

• Where we are coming from: Trump’s order and the end of de minimis
• The reaction of postal operators worldwide
• Commercial couriers vs. postal shipments: the key difference
• What this means for international sellers
• The new customs process starting in September
• Checklist for a Spanish Seller

Where we are coming from: Trump’s order and the end of de minimis

Until now, the United States permitted the importation of shipments valued at up to $800 without paying duties. This policy not only simplified procedures but was essential to the success of eCommerce giants such as Shein and Temu, whose models involved sending millions of low-cost packages directly from Asia. It also benefited any Spanish eCommerce business seeking to sell products directly to U.S. customers within that threshold, such as clothing, footwear, or accessories.

The White House justifies this measure with three reasons: unfair competition, the fight against counterfeiting (according to its data, 97% of items seized in 2024 were linked to the de minimis exemption), and smuggling of fentanyl and opioids (98% of what was seized entered through this channel).

As we explained previously, Trump’s executive order from several weeks ago completely eliminates this exemption, instead establishing two methods for calculating the new tariffs:

• Ad valorem tariff: a percentage based on the product’s value, varying according to the country of origin and product category. For example, a t-shirt from a given country might have a 15% tariff on its value, while an electronic component from another could face a 25% duty.
• Fixed per-package tariff (temporary, 6 months): This fee is based on the tariff agreement the United States has reached with each country (which you may consult here):
  • $80 for countries with rates below 16% (such as EU, which agreed on a 15% tariff with the United States)
  • $160 for rates ranging from 16% to 25%
  • $200 if rates exceed 25%.

The reaction of postal operators worldwide

In this context, one group is clearly impacted by this decision: postal operators, who are responsible for delivering shipments from all over the globe to the United States. As a result, the news has compelled European operators to make drastic decisions.

A few days ago, PostEurop, the association representing Europe’s postal services, warned that unless technical processes are defined soon—for example, how to collect tariffs, what data to transmit, and how to interact with U.S. customs—, many countries might be compelled to suspend shipments to the United States temporarily.

Within this framework, Correos, the Spanish postal operator, has announced that as of August 25 it will cease to accept commercial packages bound for the United States and Puerto Rico valued at $800 or less. Only documents, books, and gifts sent between private individuals of up to $100 are still allowed. Correos emphasizes that the suspension is temporary and that services will resume once solutions are in place to adapt to the new regulations.

However, as mentioned, this has affected most postal operators. For instance, a major player like German DHL Parcel has announced that it will not accept business customer shipments to the United States as of August 22. However, and here there is an important nuance which we will explain further below, it will continue operating with DHL Express, its commercial courier branch, as this service is able to process customs declarations directly with U.S. authorities.

This same pattern is repeated outside Europe. Japan Post, Singapore Post, Hongkong Post, and New Zealand Post have likewise suspended postal shipments of goods to the United States and advise their customers to use express services.

Commercial couriers vs. postal shipments: the key difference

Let us now elaborate on the difference between express services and postal services—something that might stand out to you if you are not accustomed to the world of shipping.

Postal Shipments (Correos, La Poste, Deutsche Post, etc.)

These operators function under the Universal Postal Convention, with simplified customs procedures and agreements with USPS (United States Postal Service, not to be confused with UPS). This channel is precisely the one being blocked by the new order, as low-value shipments will no longer benefit from those special processes.

Commercial Couriers (UPS, FedEx, DHL Express, etc.)

They do not rely on the postal channel; rather, they manage customs entries directly with Customs and Border Protection (CBP). For this reason, they can continue to operate, although all packages they transport will be subject to tariffs and must comply with the corresponding bureaucracy.

As explained by DHL, “the customs clearance process for postal shipments is generally simpler and more cost-effective. The basis for postal customs clearance is the Universal Postal Convention. (…) Commercial customs clearance, such as that offered by DHL Express, remains available to customers. (…) This type of clearance primarily affects the movement of commercial goods and is often conducted by customs agents or specialized intermediaries. Commercial shipments are subject to more stringent requirements, particularly regarding the description, classification, and proof of value of goods, as well as other controls.”

The declaration of goods when shipping with DHL Express is carried out by DHL as a customs agent in the United States. The payment of applicable tariffs is made in accordance with the ‘Incoterm’ (International Commercial Terms) agreed upon by sender and recipient. This specifies who is responsible for costs and risks during transportation of the goods, and who is responsible for customs clearance.”

What this means for international sellers

The impact of all these changes on European sellers—and particularly Spanish sellers—is complex:

• On one hand, as has been known since the U.S.–E.U. agreement: Products sent to the United States will have to pay additional tariffs (for example, 15% from the E.U. or an $80 fixed fee per package during the first six months).
• Additionally, greater bureaucracy will be required: each product must include an HS code (Harmonized System), a number of 6 to 10 digits that internationally classifies products and determines the applicable tariff. Continuing the previous example: a cotton t-shirt and an electronic component have different codes and, therefore, pay different rates.
• There will be increased risks of delivery delays, as all packages will be subject to more thorough inspections.
• This means that sellers who compete primarily on price will see their margins shrink and must decide whether to pass costs on to the consumer or absorb them.

It is indeed difficult to predict exactly how international trade will shift following such a significant measure; however, the consequences may not be limited to the U.S. market alone. In this context, major low-cost goods producers (primarily in China) will no longer find it as easy to access this market. This could prompt such companies to redirect their immense production volumes toward other markets, such as the European one, where “de minimis” regulations are more flexible… for now. Bear in mind that the E.U. is also considering taking action in this regard and eliminating the customs exemption for packages under 150 euros.

The result is unpredictable, but we may witness a significant increase in competition for local sellers (in our case, Spanish sellers). This could accelerate market changes: by flooding the market with products even cheaper than those already available, domestic sellers might be pressured to lower their prices, thereby affecting their profit margins.

The new customs process starting in September

As discussed, these changes amount to a redesign of import procedures:

• For postal shipments
  • Operators will be responsible for collecting tariffs and transferring them to CBP via the Pay.gov system.
  • They will need to report the number of items, country of origin, and, if applicable, value for ad valorem calculation.
  • Shipments exceeding $2,500 must be formally entered.
  • Gifts sent between private individuals up to $100 remain exempt, but are subject to much stricter controls.
• For courier shipments:
  • All shipments must be registered in the customs system.
  • Packages with a value equal to or less than $2,500 may be processed as informal entries, though customs may require a bond.
  • Shipments exceeding $2,500 will require a formal entry with a mandatory bond.
  • The required documentation includes a commercial invoice, tariff classification (HS code), country of origin, value, and importer’s details: company or individual in the United States, with their identification number (EIN/SSN or Form 5106 if new).

It is important to emphasize, as noted, that European postal operators such as Correos or Deutsche Post have not yet resumed commercial shipments. They will do so once their systems have adapted to meet the new requirements. Until then, the only operational channel is commercial couriers.

Checklist for an European seller

What you must consider if you plan to ship to the United States as of September:

• Choose your channel: a courier service is preferable to postal, because international mail service is temporarily suspended.
• Define the Incoterm: Incoterms (International Commercial Terms) are international rules that define the responsibilities between seller and buyer in an international sale. They determine who bears costs, risks, and administrative procedures at each stage of transport—from the factory to the final destination. They specify who pays for freight, who arranges insurance, who handles customs clearance, and at which point the transfer of risk occurs. Their use prevents ambiguities, facilitates international contracts, and standardizes foreign trade operations. In this case, we will focus on:
  • DDP (Delivered Duty Paid): you pay duties and taxes before shipment.
  • DAP (Delivered At Place): the customer pays upon receipt.
• Classify your product with an HS code: a 6–10 digit number that defines your merchandise and determines the applicable duty.
• Complete commercial invoice: include a clear description of the product, actual value, country of origin, and buyer’s details.
• Calculate duties: from the E.U., expect a 15% duty on value or $80 per package under the temporary system.
• Review delivery times: new controls may result in delays.

And above all, remain patient.

Image: Flux Schnell

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Creating a base to stack products on top of one another and secure them: with that simple yet revolutionary idea, the pallet was invented, an element that often goes unnoticed but plays a crucial role in modern logistics.

Since their inception, these loading platforms have transformed the way goods are moved, stored, and distributed globally, working in tandem with the use of containers (whose history has already been covered in another article).

Over the years, pallets have evolved from being a rudimentary solution to becoming an optimized tool, directly impacting businesses’ operational efficiency and costs. In this article, we shall explore their history, various types, and most relevant applications.

Discover more at: “The 10 most important commercial ports in the world”

What pallets are and how they were created

A pallet, also known as a pallet, skid, or “palé,” is a support platform comprised of boards, enabling uniform stacking and distribution of cargo. Manufactured from materials such as wood or plastic, its main purpose is to facilitate lifting and handling of goods by means of forklifts or pallet jacks, thereby improving efficiency in cargo movement.

The pallet, as a loading platform, originated in the United States during the 1920s. Prior to the invention of this platform, the process of loading and unloading goods was slow and arduous. Products were moved manually, which entailed a high cost in terms of both time and labor. With the invention of the forklift in 1920, the need arose for a platform that would enable more efficient stacking and handling of products.

In 1925, the wooden pallet was invented, and in 1939, Carl Clark designed a platform more akin to those used today. The pallet was a horizontal structure upon which goods were stacked for transportation, storage, and distribution. Thanks to the forklift and other equipment such as pallet jacks, goods began to be transported faster and more safely, both in warehouses and ports.

This advancement was pivotal in the military industry during World War II, as it allowed for efficient stacking and transport of large quantities of supplies. Furthermore, it enhanced transport safety since the goods were more stable, reducing the risk of breakage and falls.

The impact of pallets on global logistics

The introduction of the pallet represented a radical transformation in how goods are handled, stored, and transported. Its adoption optimized logistics processes efficiently, which had a direct impact on cost reduction, improved distribution, and increased storage capacity.

The advent of the pallet brought such significant change that warehouses were completely redesigned and rebuilt specifically to accommodate this type of wooden support. This reconfiguration allowed for a greater storage volume within the same spaces, as pallets make it possible to stack goods in an organized (vertical) and efficient manner, optimizing space utilization. In addition, the internal distribution of products within warehouses was facilitated and accelerated.

The design of the pallet afforded significant stability, reducing the risks of breakage and falls during transport and storage. This characteristic positively contributed to the quality of goods distribution, minimizing product damage and losses.

Types of pallets

There are several classifications of pallets, which are grouped according to dimensions, materials, and design characteristics. Each type has specific applications depending on the sector’s requirements.

These are the main types of pallets:

By dimensions

• European pallet or Europallet: 1,200 x 800 mm. This is the most widely used pallet in Europe and is compatible with most materials handling systems. It supports up to 1,400 kg in motion. Its primary advantages are durability, and in many cases, reparability and reusability.
• American pallet or Isopallet: 1,200 x 1,000 mm. Despite its name, it is common in North America, but it is also used in many other locations due to its versatility, particularly in international trade.
• Half-pallet or Display Pallet: 600 x 800 mm (exactly half the size of a Europallet). Ideal for product display in retail environments and for quick replenishment on store shelves.
• CHEP pallet: 1,200 x 1,000 mm. The term “GMA pallet” originates from the efforts of the Grocery Manufacturers Association (GMA) to standardize pallet sizes and achieve greater efficiency throughout the supply chain. These are a global standard in the logistics industry, particularly well-known for their reusability within distribution networks.
• GMA pallet: The term “GMA pallet” comes from the efforts of the Grocery Manufacturers Association (GMA) in the United States to standardize pallet sizes for improved efficiency in the supply chain. Its dimensions are 1,219 x 1,016 mm, and it is highly durable.

By number of entries

• 4-way entry pallet: 4-way pallets can be accessed from any of their four sides, facilitating their handling by forklifts and other loading equipment.
• 2-way entry pallet: Only accessible from two opposite sides. Their use is more limited compared to 4-way entry pallets, although they are still common in certain storage processes.

By manufacturing material

• Wooden pallets: These are the most common due to their low cost and ease of repair. They represent 90-95% of the global market. They are easy to procure and recycle, but have some disadvantages such as vulnerability to moisture and pests. They are ideal for general loads that do not require special conditions during transport.
• Plastic pallets: These have gained traction in certain sectors, particularly those requiring elevated levels of hygiene, such as the food and pharmaceutical industries. These pallets are lighter than their wooden counterparts and are easy to clean and disinfect.
• Metal pallets: Generally made from steel or aluminum, they are highly durable and primarily used in sectors handling heavy or hazardous materials. They offer great durability, but are also more expensive and heavier, increasing transport costs.
• Cardboard pallets: These are economical, lightweight, and disposable, making them ideal for light products and short-distance transport. They are not suitable for heavy loads or reuse since they have a limited lifespan.

Main manufacturers and distributors of pallets

Today, there are numerous companies specializing in the manufacturing and distribution of pallets, catering to various industries and needs. Among the best-known companies worldwide are:

• CHEP: Their model is based on “share and reuse” and they offer standard pallets widely used in global distribution under a rental (pooling) scheme, rather than for sale. The company operates in more than 60 countries, with the goal of reducing waste and improving the efficiency of supply chains.
• PalletOne is one of the largest manufacturers of wooden pallets in the United States and manages more than 70 operations.
• Cabka: Manufactures high-quality pallets and containers from recycled plastic since 1994. Their products are durable, recyclable, and easy to clean, with an extensive portfolio and presence in multiple sectors. The company operates 6 production centers worldwide.
• The International Pallet Association (IPLA) brings together pallet manufacturers from across the globe, promoting industry standardization and recycling. It has a global network of members and offers a wide range of products and solutions. Additionally, IPLA manufactures auxiliary devices for pallet handling such as stackers, unstackers, pile formers, etc., providing comprehensive, tailor-made solutions.

An accessible and affordable product

In Spain, there are many companies that manufacture, rent, and/or sell pallets made from various materials for all types of industries. Companies such as Rotom, Tradepallet, Itepal, and Grupo Causo are market leaders, offering a wide range of certified models, including cardboard and wooden pallets.

The Seville-based company Renovapalets specializes in buying and selling these products and even manufactures bespoke furniture from wooden pallets. Todocontenedores is another online store that offers used pallets. Other distributors of plastic and/or wooden pallets for logistics use include Induenvas, Ribawood, Antalis, Kaiserkraft, Encaja Embalajes, Embamat, Makro, Leroy Merlin, and even Amazon.

Regarding prices, there is a wide range, depending on quality, size, material, level of technological sophistication, etc. However, pricing can generally be set at between 2.73-3.64 € + VAT (used wooden pallets, in more basic condition and for light loads), up to 36.36-45.45 € + VAT (metal or highly specialized pallets).

If we consider advanced technologies, prices range between:

• Smart pallets with RFID or sensors: 30-60 € + VAT.
• Automated pallets for robotic storage: 70-100 € + VAT.
• Advanced eco-friendly pallets: 25-45€ + VAT.

Photo: Depositphotos.

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The volume of global eCommerce can be measured in many ways: annual revenue, units sold, number of purchases, and so forth. However, one of the most relevant metrics relates to transportation. At present, goods are transferred from factories to the final consumer through various modes of transportation. One of the most representative within the commercial chain is the container ship—whose fascinating history we have detailed in another article.

Below, we present a ranking of the most important international ports for goods trade, organized according to the volume of containers they manage annually. Six are Chinese, nine are Asian, and only one is European.

These are the 10 most important container ports in the world (2024 data):

1. Port of Shanghai (China) – 51.51 million TEU

The undisputed leader in global volume, with more than 51 million TEU (20-foot containers) managed in 2024.

The Port of Shanghai is not only the largest in the world, but also the heart of global maritime trade. With more than 125 berths and state-of-the-art terminals, it handles approximately 20% of Chinese maritime traffic. The Yangshan terminal, built on artificial islands and connected by a 32-kilometer bridge, is among the most automated terminals worldwide.

In addition to its size, it is distinguished by its efficiency: it features automated cranes, intelligent management systems, and intermodal logistics zones that allow containers to be transferred swiftly to trains and trucks. Its strategic location at the mouth of the Yangtze River makes it an essential exit point for millions of manufactured products.

2. Port of Singapore (Singapore) – 41.12 million TEU

Holding the second global position and serving as a primary transshipment hub, it connects more than 600 ports in 123 countries. Its new facilities at the Tuas terminal are designed to reach 65 million TEU annually once the ongoing construction is completed, which is expected to conclude by 2040.

The port is recognized for its rapid cargo operations, advanced digital management systems, and extensive use of automation and drones for inspection and security. Its strategic position in the Strait of Malacca enables it to serve as a junction for trade routes between Asia, Europe, Africa, and the Americas.

3. Port of Ningbo–Zhoushan (China) – 39.30 million TEU

Located in Zhejiang Province, this port results from the merger of Ningbo and Zhoushan, together forming one of the largest port complexes in the world. With more than 191 berths, 39 of which are designed for large vessels, it is a crucial hub for the export of machinery, textiles, and electronic components. It is among those that experienced the greatest capacity growth in the past year (11.33%)

In recent years, it has invested in automation technology and terminal expansion, becoming a key link in the flow of goods between eastern China and major global markets. Additionally, it features rail connections that directly integrate it with China’s overland transportation network.

4. Port of Shenzhen (China) – 33.39 million TEU

Situated on the southern coast of mainland China, this port encompasses several terminals along the Pearl River Delta. It grew by 11.8% in 2024 and maintains more than 130 international shipping lines operating from there.

It plays a pivotal role in the export of electronic products, automotive parts, and fast-moving manufactured goods.

5. Port of Qingdao (China) – 30.87 million TEU

With sustained growth of 7.3%, Qingdao has established itself as the fifth most active port in the world, moving nearly 30.9 million TEU. Furthermore, it has implemented an innovative suspended monorail system to move containers, thereby reducing both logistical impact and emissions.

6. Port of Guangzhou (China) – 26.07 million TEU

This port, while more modest than the previous ones, remains among the most active with over 26 million TEU handled in 2024. Its growth rate of nearly 4% reflects its ongoing role within the Chinese port system.

It plays a significant role in the trade of southern China, between Hong Kong and the Pearl River Delta.

7. Port of Busan (South Korea) – 24.40 million TEU

The busiest port outside of China on the list, with 24.4 million TEU and a growth of 5.4% compared to the previous year.

It is pivotal for South Korean exports of automobiles, semiconductors, and electronics. It serves as a major regional node in transboundary trade with Japan, China, and the United States.

8. Port of Tianjin (China) – 23.29 million TEU

Consolidated as the eighth largest globally with over 23.3 million TEU, Tianjin grew by nearly 5% in 2024.

It functions as the main entry point to Beijing and northern China, with multimodal connections that include trains and trucks.

9. Port of Jebel Ali (Dubai, UAE) – 15.53 million TEU

The only Middle Eastern port in the top 10, with a volume of 15.5 million TEU and growth exceeding 7%.

Essential for logistics chains interconnecting Asia, Europe, Africa, and the Americas, thanks to its deep waters and capability to berth ultra-large vessels.

10. Port of Klang (Malaysia) – 14.64 million TEU

This Malaysian port completes the top 10, having moved nearly 14.6 million containers and reflecting a growth of 4.2%. It is an important transshipment hub in Southeast Asia, serving regional trade and maintaining direct connections to major hubs in China and Singapore.

What makes a port important

Beyond the capacity and annual container volume a port handles, there are additional variables that grant it significance in international trade:

• Large-scale infrastructure: multi-billion-euro berths, automated terminals, and dedicated facilities for giant containers.
• Strategic location: many are situated on maritime routes connecting major markets (East Asian coast, Strait of Malacca, Persian Gulf, etc.).
• Operational efficiency: many of these facilities operate using automated systems, reducing wait times and improving daily turnover rates.
• Intermodal connectivity: rail, road, and inland waterways to distribute goods to key inland areas, such as northern China from Tianjin or within the United States from Savannah.
• Diversified traffic: handling everything from electronics and manufactured products to petroleum, automobiles, or refrigerated foods.

Asia pulls the strings of maritime transportation

This ranking reveals how global commerce is highly concentrated in Asia—and particularly in China, which dominates six of the ten busiest ports on the planet. Only one is European, and none from the United States appear in the individual top 10, although there are combined representations in the broader global ranking.

For the world of eCommerce and digital marketing, understanding these routes is critical, as many logistical operations and transport-related delays ultimately affect the final consumer awaiting their order. Knowing the path goods take, possible bottlenecks, and how these major ports operate gives you a direct connection to how your product reaches your customer and the implications this has on timing, costs, or stock availability.

Photo: Canva

The post These are the 10 most important commercial ports in the world appeared first on Marketing4eCommerce English.

Logistics companies for eCommerce (e-Logistics) represent a fundamental component in these types of digital businesses, as they encompass several stages of the sales process: procurement of goods, inventory management, storage, distribution and transportation, customer service, and more. The sale is not complete until the customer receives the product.

There are many companies that offer these types of services, and selecting the most suitable one for your business can be quite a complex task. To make this easier for you, we have carried out a thorough market analysis together with 58 experts to select the 14 best logistics service providers (among them, the sponsored options from Marketing4eCommerce partners are specially highlighted with ⭐). This vertical is part of our Ecommtech 2025 Guide, which you can download completely free of charge.

These are the 14 best logistics companies for eCommerce:

1. 1. Spring GDS ⭐
   2. Nacex ⭐
   3. Adock ⭐
   4. CTT Express
   5. GLS
   6. Correos Express
   7. DHL
   8. Logisfashion
   9. Amazon Logistics
   10. Celeritas
   11. UPS
   12. Amphora Logistics
   13. FedEx 
   14. Seur

CTT Express

Another major logistics company for eCommerce. CTT is a Spanish company that began operating as an urgent parcel delivery provider in the Iberian Peninsula in February 2020, and it has been part of the CTT Group since 2005.

It offers 24 or 48-hour delivery services in Spain and Portugal, carries out international shipments, and has high-capacity sorting machines that allow it to make more than 200,000 daily deliveries. It caters to B2B and B2C companies, provides urgent delivery services, and can integrate with any eCommerce through plugins.

• Year founded: 1996
• Country: Spain

GLS

Present in our country since 2005, the acquisition of ASM in 2016 and Redyser in 2018 helped strengthen GLS’s presence in the Spanish market. The most notable aspects of its eCommerce offering include:

• Delivery times of less than 24 hours for domestic shipments and 72 to 96 hours for international shipments.
• A network of 7,700 convenience points, including Parcelshops and Parcel Lockers.
• Operations in 40 European countries, Canada, and the west coast of the United States, with global connectivity through partnerships.
• Complimentary app for tracking shipments.
• A dedicated team for the integration of shipping plugins on your website, regardless of the platform you use (WooCommerce, PrestaShop, Shopify, Adobe Commerce).

To this day, GLS remains one of the leading logistics companies worldwide.

• Year founded: 1999
• Country: Netherlands

Correos Express

This is a flexible delivery system from Correos designed so that recipients know the time their shipment will be delivered and can choose alternative days and time slots. It adapts to various sizes of online stores with different monthly pricing plans. It is flexible in both the pickup and delivery of packages, manages exchanges and returns, keeps customers informed, delivers on Saturdays, and reaches destinations worldwide.

A program has been designed to be compatible with marketplaces such as Amazon or eBay, and they offer free integration with eCommerce platforms such as Prestashop, WooCommerce, and Adobe Commerce.

• Year founded: 2013
• Country: Spain

DHL

Another major international group operating in Spain is DHL, which also provides a dedicated service for eCommerce. DHL is present in 220 countries and offers 24/48-hour deliveries in Spain and Portugal, international shipments to over 60,000 pickup points throughout Europe, as well as delivery to homes or to any of its DHL service points (3,700 in Spain and Portugal alone).

It integrates seamlessly with major online store software and marketplaces, and provides additional services such as shipping insurance, delivery of bulky items, and its Go Green policy (reducing carbon footprint) through the use of sustainable vehicles.

• Year founded: 1969
• Country: United States

Logisfashion​

With a presence in Europe, America, and Asia, Logisfashion operates 25 distribution and fulfillment centers in 10 countries. Its eCommerce logistics services include storage and inventory management, Pick & Pack, order preparation, value-added operations such as labeling, bagging, ironing, or quality control, reverse logistics, forwarding and customs services, and last mile delivery.

They offer three types of integration with major eCommerce platforms: API integrations, ad hoc integrations, and client portals.

• Year founded: 1996
• Country: Spain

Amazon Logistics

Amazon Global Logistics is an end-to-end ocean freight transportation program. It is part of a fully automated suite of supply chain services by Amazon. Once you sign up in the system, you will be able to send products to Amazon’s international network of logistics centers and offer customers the option of free two-day shipping through Prime. When a customer makes a purchase, Amazon’s logistics management specialists receive, prepare, and ship the order. They also offer returns management services.

The system works as follows:

1. Create your seller account on Amazon and log in to Seller Central to set up Amazon Logistics. You can review the Amazon Logistics fees and obtain an estimate for each product you wish to enroll in the program.
2. Once you have added products to your Amazon catalog, specify which items are for Amazon Logistics.
3. Prepare the products for secure transport to the logistics center, in accordance with Amazon’s packing guidelines and shipping requirements.
4. Create a shipping plan, print the Amazon shipping identifier labels, and send the shipments to Amazon’s logistics centers. More information is available regarding inventory shipment to Amazon.

Once Amazon receives the products at the logistics center, they will be available for customers to purchase.

• Year founded: 1995
• Country: United States

Celeritas

Based in Madrid, Celeritas provides domestic and international transportation, home delivery, and delivery to convenience points – operating a network of 9,000 pickup points between Spain and Portugal – and offers traceability during the entire shipping process.

It handles storage, stock management, picking & packing, and replenishments, among other services. Additionally, it provides integration solutions, analytics, consulting, and multi-channel customer service.

Furthermore, it offers the “Celeritas Return” service to manage returns at convenience points as well.

• Year founded: 2006
• Country: Spain

UPS

UPS is an established global transportation and logistics company that delivers solutions for businesses of all sizes. It offers a wide array of shipping services, including both domestic and international options with transit times varying by destination.

Its services include UPS My Choice, allowing customers to manage their deliveries, reschedule delivery dates, or change delivery addresses. It also offers UPS Returns, a service streamlining returns management in eCommerce. The company also provides real-time tracking services, solutions for international shipping, and options for storage and distribution.

• Year founded: 1907
• Country: United States

FedEx

FedEx is one of the largest express transport companies in the world, providing a comprehensive logistics solution for all types of businesses, offering rapid and secure worldwide delivery.

Thanks to its wide variety of shipping options tailored to your needs and budget, your products can reach most destinations within 1 to 5 days.

Among its many solutions, it offers FedEx Delivery Manager, a tool through which your customers can control deliveries: from changing shipment receipt details to selecting a pickup point or authorizing delivery to a neighbor. This added flexibility and peace of mind is provided at no extra cost. Additionally, with FedEx Global Returns, you will benefit from a hassle-free returns process, simplifying the management of your eCommerce and improving your customers’ experience.

• Year founded: 1971
• Country: United States

Amphora Logistics 

Amphora is a Spanish company that provides a wide range of logistics solutions tailored to the requirements of each business. If you are looking for an expert to handle the entire logistics process of your eCommerce, then you need their Amphora 3PL product—a fulfillment solution for scaling your business both locally and internationally.

With this service, Amphora handles each stage of your logistics chain, from the time of purchase in your online store to the final delivery to the customer, including returns. This comprehensive management allows you to save costs and time without losing visibility, as you have real-time access to order and inventory status via the company’s platform. Furthermore, it facilitates internationalization, thanks to warehouses around the globe and competitive pricing stemming from large shipment volumes. With Amphora 3PL, you secure an efficient and reliable service, improving both customer satisfaction and loyalty.

• Year founded: 2020
• Country: Spain

Seur

Seur is a B2C logistics expert. It offers storage, integrated transportation, picking, and real-time information throughout the process. Seur performs quality control, constant stock updates with minimum stock level alerts, and reverse logistics for returned products.

It provides same-day deliveries and notifies the recipient within the two hours prior to delivery. Seur offers home delivery, 3,000 pickup points in Spain, and over 50,000 pickup points in Europe. It also provides the Shop2Shop system, enabling you to ship from your nearest SEUR Pickup store so the recipient can collect it at a SEUR store or locker.

• Year founded: 1942
• Country: Spain

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You may have never taken the time to consider it, but those enormous cargo containers you see stacked at ports, traveling on massive ships, endless trains, and trucks that are nearly impossible to overtake, are truly the hidden heroes of international trade. Without them, ordering from Amazon, importing clothing from China, or exporting olive oil to Japan would be both difficult and expensive—extremely expensive.

Today, we will share with you the history and interesting facts about these giants of transportation that, although they may appear to be simple metal boxes, actually contain a fascinating world within.

From trucks to ships: the origin of the modern container

The concept is not new: since ancient times, containers have been used for moving goods. However, everything changed in 1956. An American entrepreneur and transporter named Malcolm McLean, tired of the costs and time involved in loading individual boxes onto ships, had a revolutionary idea: What if all the cargo could be placed in large standardized metal boxes that could be transferred directly from trucks to ships?

To test his theory, McLean purchased two old vessels and adapted them to carry these metal containers, which shared the same dimensions as his truck trailers. The first voyage of a container ship, the “Ideal-X”, took place in April 1956, carrying 58 containers from Newark to Houston. The result exceeded expectations: shipping costs dropped from $5,83 per ton to just $0.16 per ton. This was a turning point that enabled globalization to take off.

The ISO standard for containers was established in 1961, which allowed for their global adoption. Today, over 90% of global commerce is transported by sea, and a large part of it moves in containers.

This concept of encapsulating cargo in a portable, secure, and reusable unit would later inspire the software industry to “package” content. However, that is a topic for another article 😉

How many containers operate in international trade and how are they moved?

According to data from UNCTAD (United Nations Conference on Trade and Development), in 2024, global container trade grew by 3.5%, marking a significant recovery after the modest 0.3% increase recorded in 2023. This upturn is attributed to the progressive improvement of supply chains following the impact of the pandemic, tensions in the Red Sea, and the normalization of flows along key routes such as Asia-Europe or the transpacific corridor.

Globally, it is estimated that there are over 40 million active containers, with the majority being manufactured in China, which produces 90% of the world supply. These containers move through an integrated network of more than 6,000 commercial ports and over 7,081 container ships, with a total capacity of 30.67 million TEUs (364 million deadweight tons). Their lifespan is between 10 and 15 years at sea, and much of their structure is recycled.

With nine international ports, Asia dominates container traffic. The most significant is the Port of Shanghai (China).

Types of containers: more than standard boxes

Although a container may be commonly imagined as a gray metal box of 20 or 40 feet, the universe of intermodal transport is much more diverse and sophisticated:

• Standard Container (Dry Van): The most widely used, ideal for dry or general cargo such as appliances, clothing, or industrial materials. It accounts for over 80% of the worldwide container fleet.
• Metal Containers: Similar to the standard types but not hermetically sealed and without refrigeration. These are commonly used for transporting garbage and waste by road.
• Reefer (Refrigerated): Essential for the cold chain. It transports products ranging from seafood to vaccines, maintaining temperatures between -25 °C and +25 °C, thanks to autonomous refrigeration systems connected to the ship’s or truck’s electrical system.
• Open Top: Without a rigid roof, this container allows for the transportation of goods with excess height, such as metal coils or wind turbine components.
• Flat Rack: Lacking both side and top walls, this type is used for heavy machinery, industrial vehicles, or large structures.
• Tank Container: With a cylindrical structure, this container is designed for bulk liquids such as wine, oils, fuels, or hazardous chemicals. It includes pressure valves, cleaning systems, and anti-corrosive protection.
• Flexi-tank: This is an alternative to the tank container for non-hazardous bulk liquids. It utilizes a standard 20-foot (dry van) container fitted with a disposable flexible bag, generally made of polyethylene. This solution provides a more economical and efficient option for certain liquid products, such as vegetable oils, wines, or juices, particularly along single-use routes.

And for several years now, we have witnessed the rise of intelligent containers. Outfitted with IoT sensors, they allow for real-time monitoring of temperature, humidity, door openings, GPS tracking, impact and vibration detection. Furthermore, they integrate with management systems and send alerts.

Companies such as Traxens, Orbocom, or Smart Containers Group lead this segment, which is becoming standard in sensitive sectors such as food, pharmaceuticals, or luxury goods.

Sizes and capacity

In addition to types, shipping containers are also classified by size and load capacity. Each of these models may come in different lengths, with the most common being the 45, 40, and 20-foot versions, as well as the high-capacity models. The container measurement unit is the TEU (twenty-foot equivalent unit), equal to 20 feet (6.10 m). Global capacities of ships, container terminals, or port cargo movements are measured in TEUs.

The 20-foot containers, which are the most standardized internationally, have a maximum gross weight of approximately 29 tons, which includes both the payload and the container’s own weight. In the case of 40-foot containers, the maximum gross weight rises to about 32 tons.

The giants of the ocean: who controls the world (literally)

Behind every container traveling around the globe stands a megacorporation pulling the strings—or more accurately, directing the ships. Maritime transport is dominated by a small group of large shipping companies competing for the crown of global logistics. These are some of the most prominent:

1. MSC (Mediterranean Shipping Company) – Switzerland. In 2024, MSC consolidated its position as leader with a capacity of 6.3 million TEUs, representing 20.2% of the global total. Its fleet reached 879 vessels, widening the gap over Maersk by 1.9 million TEUs.
2. Maersk – Denmark. With a capacity of 4.3 million TEUs and a fleet of 707 ships, Maersk maintains a 14.6% market share. In 2024, the company announced the “Gemini Cooperation” with Hapag-Lloyd, focusing on reducing stops and improving punctuality.
3. CMA CGM – France. In 2024, CMA CGM reported revenues of $55.4 billion, an 18% increase from the previous year. The company transported over 6 million TEUs in the third quarter, benefiting from increased volumes and higher freight rates.
4. COSCO Shipping – China. COSCO Shipping Lines transported 18.3 million TEUs in 2024, generating revenues of 130,909 million yuan, a 36.8% increase compared to the previous year. The company also expanded its fleet with 12 new ships, adding 230,000 TEUs of capacity.
5. Hapag-Lloyd – Germany. In 2024, Hapag-Lloyd transported 12.5 million TEUs, a 5% increase over the previous year. The company reached, for the first time, an operating capacity of 2 million TEUs, consolidating its market position.

Together, these companies manage more than 80% of global container traffic. We are talking about trillions (with a “t”) in the value of goods moved each year, from smartphones to automobiles, as well as coffee, textiles, and industrial components. And it is important to note, this sector generates over $500 billion annually, according to the consultancy Drewry.

A delay along any of these routes can trigger domino effects on a global scale: factories may halt production, supermarket shelves may remain empty, or prices may soar (recent examples include the container crisis, the war in Ukraine, or the attacks in the Red Sea and their consequences).

Impact on international trade and global economy

The container did not merely change the method of transporting goods; it transformed the entire economy. Thanks to containers, supply chains became more efficient, more cost-effective, and more secure. Shipping times were reduced, theft (previously common with loose cargo) declined, and customs procedures were simplified.

This enabled the relocation of production and the rise of eCommerce giants. Does something called Amazon sound familiar? Without containers, you would not receive that imported gadget at your home within 72 hours. In fact, the logistics cost to ship a full container from Asia to Europe is often lower than sending a single box by courier within your own country.

Furthermore, the container was instrumental in the creation of modern ports such as those in Shanghai, Singapore, or Rotterdam—true hubs that operate 24/7 as logistical factories with robotic cranes and automated management systems.

Fun facts you didn’t know about containers (and you’ll want to share)

• A container can hold up to 32 tons of cargo and can be stacked up to nine stories high on a ship.
• Some containers have been converted into homes, offices, bars, or even boutique hotels (industrial design is in vogue).
• Satellite tracking services exist that allow you to view your container’s real-time location (much like you would with your AliExpress order, but on an XXL scale).
• A “second-hand market” for containers exists, and you can purchase one from just $500 if you would like to have an apocalyptic shelter in your backyard.

What does the future hold?

With increasing pressure to reduce emissions and the pursuit of greener logistics, containers are evolving as well. Lighter, recyclable, and more efficient versions are being developed, and new transport methods are aiming to decarbonize through alternative fuels such as ammonia or green hydrogen.

And if you thought the metaverse had no place here, think again: companies like Maersk are exploring digital twins to optimize routes and times in real-time.

Photo: ChatGPT

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Amazon has taken a new step in the evolution of automation by introducing Vulcan, its first warehouse robot capable of sensing the objects it handles. This technological advancement signifies a shift in how the company approaches the most complex and delicate logistics tasks within its distribution centers.

Unlike traditional robots, Vulcan is able to perceive and adjust its force when handling products, which allows it to manage approximately 75% of the inventory products. This capability positions it as an essential tool to reduce the physical burden on employees and expedite processing times. Vulcan is already operational in distribution centers in Spokane (United States) and Hamburg (Germany), and its expansion to other facilities is expected in the near future.

As Aaron Parness explains, Amazon’s director of robotic AI, it is “a technology that seemed impossible three years ago but now is ready to help transform our operations.”

What is Vulcan and how does this new sensory robot work?

Vulcan is a robotic handling system designed to pick up and store products with unprecedented sensitivity. Its technology incorporates haptic sensors, which detect information such as pressure, force, texture, vibration, or temperature and convert it into data that the system can interpret to adjust its behavior in real-time. For robots like Vulcan, these types of sensors are used to:

• Measure the force applied when holding an object and avoid crushing it.
• Detect if an object resists or slips, allowing the grip to be corrected.
• Aid in moving items in confined spaces with greater precision.
• Imitate human sensitivity to handle fragile or soft items without damaging them.

Vulcan features a combined system of suction and artificial vision, where a suction cup assisted by cameras analyzes each product before moving it. This method allows it to calculate the best way to lift an item, even when objects are packed tightly in compartments or located at difficult angles. Additionally, it integrates a device similar to a spatula to separate objects in tight spaces, emulating human manual dexterity.

One of Vulcan’s most important innovations is its capacity to learn from experience. As it performs tasks, it adjusts its parameters and adapts its movements to new situations, making it an intelligent and versatile robot, ready to interact in highly dynamic logistical environments.

Unlike previous systems, this robot interacts actively with its environment in a more sensitive and precise manner, allowing it to perform tasks that previously required direct human intervention, such as the handling of fragile, soft, or irregularly shaped items.

Robots at Amazon: From Kiva to Sparrow and Beyond

Amazon has come a long way since acquiring Kiva Systems in 2012, marking the beginning of its internal automation strategy. Since then, it has deployed a diverse fleet of robots, each specialized in specific logistics tasks:

• Kiva: a precursor in warehouse transport robotics, moving entire shelves toward workstations.
• Hercules: an enhanced version of Kiva, designed to lift heavier loads.
• Pegasus and Xanthus: autonomous mobile systems for package sorting.
• Proteus: Amazon’s first robot capable of operating in shared spaces with workers without requiring a dedicated area.
• Sparrow: a robotic arm with AI vision for identifying and manipulating individual objects.
• Robin and Cardinal: robotic arms used in sorting and packaging processes.
• Sequoia: an AI-based intelligent storage and retrieval system.

What distinguishes Vulcan from the rest is its sensory and adaptive capabilities. While robots like Proteus or Sparrow are designed for specific tasks and require controlled environments, Vulcan can operate in more unstructured scenarios and handle items that other systems cannot recognize or manipulate effectively.

Labor changes and new opportunities with the arrival of vulcan

From the technology company, they explain that the implementation of Vulcan will not replace human employees. On the contrary, Amazon asserts that this new system is designed to complement the human team, relieving repetitive or physically demanding tasks. For instance, retrieving items from lower or upper shelves can create muscle strain, a load Vulcan can now take on.

Additionally, the incorporation of this type of technology has created new job opportunities, especially in technical areas. Positions are being created to operate, maintain, and program these robotic systems. There are also emerging roles related to operational data management, quality supervision, and logistics planning adapted to human and robot interaction.

“Vulcan works alongside our employees, and the combination is better than either of them alone,” assures Parness.

Photo: Amazon

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With peak season of the year about to begin, a logistics threat looms over the entire global supply chain. Dockworkers at the major ports on the East Coast and the Gulf of the United States began a strike in the early hours of October 1, after failing to reach an agreement with the United States Maritime Alliance (USMX) regarding their working conditions and wages.

While the International Longshoremen’s Association (ILA) is seeking a 77% wage increase over the next six years, the USMX is only willing to offer 40%. As a result, dockworkers at 36 facilities across 14 ports, stretching from New England to Texas, will cease operations indefinitely in an area that handles 60% of North America’s total container volume. This could have negative consequences for the international supply chain, delaying shipments and increasing transportation costs.

Why docworkers in the US are on strike

The ILA is demanding a 77% wage increase over a six-year period, arguing that workers should receive a share of the profits shipping companies gained during the pandemic. Additionally, the association is calling for clauses to protect workers’ jobs from automation in dockworkers’ tasks.

On the other hand, shipping companies have stated that dockworkers already earn wages above the average and argue that introducing technology at the ports improves work efficiency.

With no agreement reached, approximately 65,000 American workers have stopped their tasks indefinitely.

Meanwhile, the USMX has filed an unfair labor practice charge with the National Labor Relations Board (NLRB), stating that the ILA has not negotiated in good faith. The maritime alliance also issued a statement accusing the ILA of systematically refusing to sit down and negotiate a new master contract.

International consequences

Although the effects of the strike might not be felt immediately, if U.S. ports remain closed for an extended period, the consequences could be severe. Transportation costs would rise, and exports and imports, especially those coming from Asia, would face delays. This would create bottlenecks in global supply chains, inventory shortages, production slowdowns, and even temporary plant closures—a true domino effect.

The problem is that there does not appear to be a viable alternative for the ships that will be stranded on the East Coast of the United States. Even if vessels are redirected to other ports on the West Coast, the inland transportation infrastructure would be unable to handle such a large volume of goods. Additionally, Mexican ports are already operating near full capacity, and a diversion through the Panama Canal would be extremely costly.

Surcharges on Freight

According to the U.S. Federal Maritime Commission regulations, any increases in tariffs or surcharges on maritime freight must be communicated at least 30 days before they take effect. Since September 1, anticipating a potential ILA strike, the first notices of an “Emergency Operations Surcharge” were issued, which apply to shipments made from Europe to the East Coast and the Gulf of the United States.

In this regard, the major shipping lines have published notices of surcharges due to the dockworkers’ strike, which will be implemented between October 1 and October 19. These surcharges can range from $800 to $2,400 for 20-foot containers and from $1,60 to $3,000 for 40-foot (12.192 meters) containers. These announcements indicate the potential rate increases that could occur if the strike continues.

Background of the international logistics crisis

This conflict adds to the challenges the sector was already facing due to the crisis in the Red Sea, which has forced the suspension of transit at the end of 2023 and the beginning of 2024, redirecting trade routes away from the region.

Additionally, international logistics recently suffered from the closure of the Suez Canal in 2021, when the Ever Given, a 400-meter container ship operated by the Evergreen Group, became stuck. Moreover, the impact of the Omicron variant in China and the surge in COVID-19 cases in 2022 forced the closure of Shenzhen, the world’s fourth-largest container port and China’s leading technology hub.

We still do not know how long this conflict will last or what the real short- and medium-term consequences will be. Once again, we will have to wait and see.

Photo: ChatGPT

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Amazon has taken a new step to facilitate the internationalization of sellers using its platform with the launch of Export Central, a tool that promises to simplify exporting to 39 European countries in just three clicks. This new feature is primarily aimed at sellers who manage their own logistics through the Merchant Fulfillment Network (MFN) program, allowing them to reach new markets without added complications.

What is Export Central

Export Central is part of a broader European export program, which is completely free for sellers operating from Amazon’s six European stores: the United Kingdom, France, Germany, Italy, Spain, and the Netherlands. This means that sellers can export their products to countries where Amazon does not have a physical presence, such as Austria, Greece, and Portugal, without the need to duplicate listings or create new accounts. This advancement drives traffic to product catalogs, offering growth opportunities that previously required more time and resources.

It is important to note that this service is available to both sellers who use Amazon’s logistics (FBA) and those who prefer to manage their own logistics through MFN. For FBA users, the European export program is automatically active at no additional cost, making it even easier to expand into international markets.

• What countries does Amazon ships to (and in which countries does Amazon sells)

How Export Central Works

One of the most notable features of Export Central is its ease of use. Sellers, particularly small and medium-sized businesses, can enable international exporting with just three clicks. To do this, they simply need to log into their Amazon seller account and explore the options offered by Export Central. This tool allows them to set up international shipments from multiple stores simultaneously, while Amazon adjusts delivery times and suggests standard shipping rates.

Additionally, the platform offers the ability to review and modify these settings before proceeding, ensuring that sellers maintain full control over their export operations. This way, entrepreneurs can focus on their business without worrying about logistics, optimizing their time and resources.

Benefits of using Export Central

The results generated by this tool among sellers who have enabled exporting are promising. According to Amazon, these sellers have experienced an average sales increase of 10%. This figure highlights the opportunity Export Central presents for sellers looking to grow beyond their national borders, accessing new markets and customers in a simple and efficient manner.

Xavier Flamand, Vice President of Seller Services at Amazon Europe, emphasizes the positive impact of this tool on the growth of small and medium-sized businesses. According to Flamand, Export Central “eliminates many of the traditional barriers to international expansion,” allowing sellers to focus on what they do best: creating and selling their products.

Image: GPT4

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As eCommerce continues to grow globally, the complexity and costs associated with logistics have increased, posing challenges to profitability. However, with the right strategies and innovations, eCommerce businesses can turn logistics from a cost center into a competitive advantage and profit driver. Here’s how.

1. Optimize inventory management

Inventory management involves supervising and controlling a company’s stock to ensure the right amount is available at the right time, helping to minimize costs and boost efficiency. This process includes tracking inventory levels, forecasting demand, placing orders, replenishing stock, and overseeing storage and distribution.

Effective inventory management strikes a balance between meeting customer demand promptly and avoiding overstocking, which can tie up capital and increase storage expenses, or understocking, which may result in lost sales and customer dissatisfaction. Optimizing stock levels helps businesses lower costs, improve cash flow, and increase profitability.

Overstocking locks up capital and raises storage expenses, while understocking leads to missed sales and unhappy customers. Using a strong inventory management system (IMS) enables businesses to accurately forecast demand, dynamically manage stock levels, and cut costs related to excess inventory.

• Just-in-Time Inventory: By adopting a just-in-time (JIT) approach, businesses can minimize the costs of holding inventory by aligning stock levels more closely with demand. This approach requires precise demand forecasting and strong supplier relationships.
• Data-Driven Forecasting: Leveraging data analytics to predict trends and demand fluctuations helps in making informed purchasing and stocking decisions. Real-time data can prevent both overstock and stockouts, enhancing profitability.

2. Streamline warehouse operations

Warehouse efficiency plays a crucial role in determining the profitability of logistics operations. Streamlining processes from receiving goods to picking, packing, and shipping can result in significant cost savings and faster delivery times.

• Warehouse automation: Implementing automation technologies such as conveyor systems, automated storage and retrieval systems (AS/RS), and robotics can significantly enhance warehouse efficiency. Automation reduces labor costs, minimizes errors, and accelerates the fulfillment process.
• Efficient layout design: An optimized warehouse layout shortens the distance workers or automated systems must travel to pick items. By placing high-demand products closer to packing stations, businesses can reduce fulfillment times and lower labor costs.

3. Negotiate favorable shipping rates

Shipping costs are a major expense in eCommerce logistics. To remain profitable, businesses must find ways to reduce these costs without sacrificing delivery speed or reliability.

4. Enhance last-mile delivery efficiency

Final mile delivery is often the most challenging and expensive part of the logistics chain, accounting for a significant portion of total delivery costs. Improving efficiency in this area is crucial for maintaining profitability.

• Local Fulfillment Centers: By establishing smaller, strategically located fulfillment centers closer to key markets, businesses can reduce delivery times and costs. This approach also allows for quicker and more flexible responses to local demand.
• Delivery Route Optimization: Using advanced route optimization software, companies can plan the most efficient delivery routes, reducing fuel costs, labor hours, and overall delivery times. This is particularly important for same-day or next-day delivery services.
• Crowdsourced Delivery Solutions: Partnering with crowdsourced delivery platforms or using gig economy workers for last-mile delivery can offer flexibility and cost savings, particularly during peak demand periods.

5. Leverage technology for end-to-end visibility

Visibility throughout the entire logistics chain is critical for controlling costs, ensuring timely deliveries, and maintaining customer satisfaction. By integrating technology at every stage of the logistics process, businesses can gain real-time insights and make better decisions.

• Integrated Logistics Management Systems: Deploying end-to-end logistics or fulfillment software allows for real-time tracking, automates workflows, and provides data-driven insights into all supply chain operations. This enhanced visibility helps identify inefficiencies and lowers operational costs.
• IoT and Sensor Technology: Internet of Things (IoT) devices and sensors can track the condition and location of goods in transit, delivering valuable data to optimize routes, predict delays, and minimize losses from damage or theft.

6. Embrace sustainable practices

Sustainability is increasingly becoming a key consideration for consumers and a potential differentiator for eCommerce businesses. While sustainable practices may initially seem like an added expense, they can lead to long-term cost savings and increased customer loyalty.

• Eco-Friendly Packaging: Reducing packaging waste not only lowers material costs but also reduces shipping costs by decreasing package weight and volume. Investing in recyclable or reusable packaging can also enhance brand image and appeal to eco-conscious consumers.
• Green Shipping Initiatives: Partnering with carriers that offer carbon-neutral or reduced-emission shipping options can help reduce the environmental impact of deliveries. Additionally, optimizing delivery routes and consolidating shipments can decrease fuel consumption and emissions.

7. Focus on customer experience and satisfaction

While logistics is often seen as a back-end function, its impact on customer experience is profound. A positive delivery experience can drive repeat business, reduce return rates, and enhance profitability.

• Transparent Communication: Keeping customers informed about their order status through proactive communication and real-time tracking reduces anxiety and improves satisfaction. Satisfied customers are more likely to become repeat buyers, which increases lifetime value.
• Flexible Delivery Options: Offering flexible delivery options, such as scheduled delivery times, pick-up points, or lockers, can cater to customer preferences and reduce the likelihood of failed delivery attempts, which can be costly.

8. Monitor and improve performance continuously

The eCommerce environment is constantly changing, and strategies that work today may not be effective tomorrow. Continuously monitoring, analyzing, and refining logistics operations is crucial for remaining competitive and profitable.

• Key Performance Indicators (KPIs): Regularly tracking KPIs like order accuracy, on-time delivery rates, cost per order, and customer satisfaction helps pinpoint areas that need improvement. Making data-driven decisions enables businesses to quickly adapt to shifts in the market.
• Continuous Improvement Programs: Fostering a culture of continuous improvement, by implementing methodologies like Lean or Six Sigma, helps businesses identify inefficiencies, reduce waste, and enhance processes over time.

Fulfillment Service and Logistics Profitability

A fulfillment service can greatly boost logistics profitability by streamlining operations, lowering overhead, and increasing delivery efficiency. When a company manages its own logistics, it faces high fixed costs for warehousing, staffing, and equipment, which can be particularly burdensome for small to mid-sized businesses as they grow. Outsourcing logistics to a fulfillment service allows businesses to turn these fixed costs into variable expenses, paying only for the services they use, thereby improving cash flow and overall profitability.

Profit in numbers

Let’s consider a supplement company that sells a variety of health products online. This company handles 15,000 orders per month, and initially manages its own fulfillment. The company incurs costs of $4 per order for warehousing and inventory management, $3 per order for picking and packing, and $6 per order for shipping, bringing the total logistics cost to $13 per order. This results in monthly logistics expenses of $195,000.

The company decides to outsource to a supplement fulfillment service that specializes in handling supplements. The fulfillment service charges $8 per order, which covers storage, picking, packing, and shipping. By outsourcing, the company reduces its per-order logistics cost by $5, lowering its monthly expenses to $120,000. This results in a monthly savings of $75,000, or $900,000 annually.

Furthermore, the fulfillment service offers optimized shipping routes and bulk shipping discounts, which save the company an additional $1 per order on average. With these extra savings, the company’s total cost per order drops to $7, further reducing monthly logistics costs to $105,000. This brings the total annual savings to $1,080,000.

By using a fulfillment service, the supplement company not only saves significantly on logistics but also benefits from the fulfillment provider’s expertise in handling sensitive products, ensuring compliance with regulations and maintaining product quality. These savings can then be reinvested into expanding product lines, marketing campaigns, or other growth initiatives, driving long-term profitability and competitive advantage in the market.

The key is to view logistics not just as a cost, but as an opportunity to drive profitability and enhance the overall customer experience.

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