Consumers expect quick deliveries when shopping online, but extreme weather events like Houston’s heatwaves and Florida’s hurricanes are making this increasingly difficult. Logistics companies have warned of shipping delays, predicting weather-related disruptions will cost the industry $100 billion in 2024, according to Freight Waves. Breakthrough, a company focused on sustainable transportation, surveyed 500 shippers and carriers, identifying extreme weather as the top challenge. Additionally, the Panama Canal and major U.S. retailers are struggling with these issues.
For instance, a snowstorm in Sparks, Nevada, disrupted Walmart’s logistics. The company used predictive analytics and AI to reroute deliveries and manage warehouse resources effectively. Walmart senior vice president Parvez Musani emphasized that this technology helps minimize customer impact by allowing swift responses to weather events.
Similarly, Target has adapted its logistics network to pre-position essential inventory and use stores as fulfillment hubs, ensuring speedy deliveries despite disruptions. Retail giant Amazon is addressing rising temperatures in warehouses by modifying delivery routes and enhancing worker safety. Despite these challenges, Amazon set new Prime delivery speed records in early 2024.
These measures, though costly, are aimed at maintaining customer loyalty. Musani noted that leveraging technology makes it easier to balance fast delivery with cost management, achieving both efficiency and sustainability.
Original Story https://www.cnbc.com/2024/08/24/two-day-shipping-americans-expect-faces-climate-change-threat.html
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