A big fire is raging in the Los Angeles area of the United States.
A wildfire broke out in the southern region of California, USA on January 7, 2025 local time. Driven by strong winds, Los Angeles County in the state quickly spread and became a severely affected area.
As of the 9th, the fire has destroyed tens of thousands of acres of land and thousands of buildings in Los Angeles County, causing severe damage to its sewers, power, and transportation systems. According to the National Weather Service of the United States, a new round of "Santa Ana winds" may appear on the evening of the 11th to the 12th, and the wind strength may strengthen again, which could easily fuel the fire.
Wherever we went, there was a sea of fire, like the end of the world, "said a local Chinese. The wildfires are ruthless, and this disaster has plunged California into a darkest moment, causing the hearts of Amazonians to ache.
01. The fire has already affected Amazon warehouses
According to warnings from freight industry peers, the impact of the Los Angeles wildfires and strong winds has posed multiple challenges to Amazon's logistics and cargo warehousing.
1. Warehouse emergency closure, logistics delay
The LBG8-LAX9 warehouse has experienced a power outage and suspended receiving goods, and a large fire has also broken out near LGB8.
According to SmartSupplyChainInc, as of January 8th, Amazon warehouses such as SWF2, RFD2, SMF3, FTW1, FAT2, MIT2, GEU3, IUSP, TEB9, MQJ1, etc. are no longer accepting orders. The rejection rate of warehouses such as MCO2, SNA4, XLX1 is as high as 90%. IAH3, MCE1, SCK4, ONT8, XLX6, RMN3 and other warehouse batches are expected to arrive in approximately 3 weeks or even 1 month.
At the same time, emergency evacuation orders were issued in multiple places and some roads were restricted, resulting in delays in the delivery of containers and trucks at the port. Recently, the delivery time of trucks transported by LA is expected to be delayed by one to two weeks, and the overall delivery time for warehouses will also be extended.
2. Rising logistics costs
As an important node in international trade, logistics delays in Los Angeles may lead to poor logistics, and goods may not arrive at their destination in a timely manner, resulting in inventory backlog in Chinese warehouses and increasing storage costs. In order to improve delivery efficiency, sellers may seek alternative logistics channels that involve longer transportation distances, more complex transfer processes, or higher insurance costs, resulting in increased transportation costs.
3. The return rate has significantly increased
On the one hand, with significant delays in the shipment and delivery time of sellers' orders, some buyers are concerned about the arrival time or safety issues of the goods, and have begun to return or cancel orders; On the other hand, the raging fire, damage to houses, and nearly 200000 people under evacuation warnings have further exacerbated the return rate.
This is undoubtedly a heavy blow for Chinese sellers who rely on Los Angeles as a logistics hub.
02. Economic losses may reach billions of dollars
According to a recent research report released by JPMorgan Chase, the losses caused by the unprecedented wildfire in the Los Angeles area have sharply risen to an astonishing level of nearly $50 billion, and this number is still on the rise.
The report predicts that the insurance industry may bear losses exceeding $20 billion as a result, and this estimated amount will be adjusted based on the time point when wildfires are ultimately contained, with the possibility of further growth.
After a fire occurs, affected sellers need to assess inventory, sales, and logistics risks in real time and make decisions based on the development trend of the fire and logistics dynamics, such as adjusting sales strategies, transferring inventory, or finding alternative logistics solutions.
Many sellers speculate that during the post disaster reconstruction phase, consumer demand in the Los Angeles area is likely to change, with a surge in demand for some products
I'm out of clothes and daily necessities outside of home, right
We also need emergency supplies, such as smoke alarms and first aid kits
Sleeping bags, tents, fuel bottles, emergency shelter kits, and other products
Anti haze mask, air purifier
At present, the air quality outside is very poor, and air purifiers are in high demand
Before the affected warehouses are restored, sellers may consider setting up temporary warehouses in other regions or countries to continue meeting market demand. This helps to shorten delivery time and improve customer satisfaction.
At the same time, sellers should also maintain close contact with the Amazon platform to understand the platform's policies and compensation measures in case of warehouse closures, logistics delays, and other situations.