Warehouse Wisdom. Weekly. 01/10/2025

Happy Friday!

As we cruise into the new year, it seems optimism is alive and (somewhat) well among small businesses—67% are betting on growth in 2025. Of course, that growth might feel a bit like driving on a pothole-ridden road with one headlight out, as SMBs brace for the economic uncertainty ahead. DHL’s latest survey paints a picture of cautious optimism, proving once again that hope springs eternal, even when logistics timelines don’t.

Meanwhile, if your marketing strategy could use a crystal ball, the NRF has stepped in with 25 bold predictions for the retail industry in 2025. From shifting consumer behavior to tech trends, these forecasts are worth checking out as you plan your marketing efforts this year.

Stick around as we dive into the week’s top headlines, including a long-awaited East Coast port deal, Panama’s latest logistical pushback, chaos in British Columbia’s reservation system, changes to FBA’s lost product compensation policies, emerging logistics tech, and more. Let’s unpack it all!

Global Freight and Shipping

Port deal, canal drama, Vancouver reservation chaos, and congestion pricing has arrived

In a rare win for supply chain stability, the International Longshoremen’s Association (ILA) and United States Maritime Alliance (USMX) have reached a contract agreement, narrowly avoiding a port strike that would have sent shivers down the spines of logistics managers everywhere. Score one for uninterrupted container flow—for now.

The Panama Canal is no stranger to bottlenecks, but this time it’s not just the water levels causing concern. Panama is pushing back against external proposals to control the canal, and the canal’s CEO isn’t exactly mincing words, calling one such plan a recipe for chaos. Considering the canal handles roughly 6% of global trade, any shake-up here is the logistics equivalent of juggling chainsaws—dangerous, messy, and sure to grab attention.

Meanwhile, chaos reigns supreme in British Columbia as the new port reservation system rolls out like an over-ambitious New Year’s resolution. Truck drivers are finding themselves squeezed by closures, delays, and a system seemingly designed to test their patience.

The U.S. Commerce Department is cracking down with higher penalties for non-compliance, sending a clear message to the trade community: play by the rules, or pay dearly. This move is sure to add a new layer of stress to anyone trying to keep up with ever-evolving regulations. But hey, at least they’ve given us a good reason to double-check those customs declarations.

And New York City has rolled out its long-anticipated congestion pricing plan, and predictably, no one is happy about it. Truckers, commuters, and even New Jersey residents (who apparently aren’t immune to the chaos) are crying foul. While the plan aims to reduce traffic and emissions, it’s also guaranteed to spark some lively discussions—and possibly some colorful language—in logistics boardrooms and truck stops alike.

Marketplaces

Amazon aggravates sellers again and leans even more on Chineses sellers

Amazon’s FBA sellers are seeing red as the e-commerce giant tweaks its compensation rules for lost products. Previously, sellers could count on reimbursement that reflected the actual value of their items, but the new policy dials back those payouts, leaving many feeling shortchanged. While Amazon claims this is all part of a more “equitable” system, sellers are left wondering if “equitable” is just corporate-speak for “we’re keeping more of your money.”

Speaking of Amazon, American sellers may want to take a seat—preferably not in their Amazon store chairs. China now dominates the Amazon seller marketplace, with a majority share that’s growing faster than next-day shipping. Whether it’s due to aggressive pricing, streamlined manufacturing, or just sheer determination, domestic sellers are finding it harder than ever to compete. It seems the “everything store” is increasingly becoming the “everything-from-China store.”

If you needed another reason to rethink your inventory management strategy, here it is: most consumers won’t wait around if a product is out of stock. A new study reveals that shoppers are more than happy to abandon your site and head to a competitor with better availability. Turns out, in the battle for customer loyalty, stockouts are the fastest way to wave the white flag. The moral of the story? Keep your shelves full—or prepare to watch your customers shop elsewhere.

Logistics Vitals

Couches outperform checkout lines

Online holiday shopping hit new heights in 2024, with mobile devices taking center stage as a dominant channel for digital purchases. Shoppers proved they could browse, click, and buy just as easily from their couches as from checkout lines.

• Mobile Domination: 54.5% of all online U.S. holiday sales came from mobile devices, the highest percentage ever recorded.

• Revenue Growth: U.S. online holiday sales increased by 8.7% year-over-year, reaching $241.4 billion.

• Top Categories: Apparel, electronics, and toys were the most purchased categories, accounting for over 50% of holiday sales.

Warehouse Tech

Forklifts fade and holograms rise?

In a surprising twist, some companies are starting to phase out forklifts, quietly replacing them with automated solutions. Safety concerns and the push toward efficiency are driving this shift, leaving forklifts looking a bit like yesterday’s hero. While forklifts have long been the backbone of warehouse operations, the rise of automation suggests their days as the undisputed champs of material handling might be numbered—though they’re still unmatched in dramatic warehouse chase scenes.

If you thought the logistics industry couldn’t get more futuristic, CES 2025 has some news for you. Interior lighting designed to reduce motion sickness, holographic dashboards on windshields, and AI-powered voice assistants are all making their way into the trucking world. Whether it’s to keep drivers comfortable or make them feel like they’re piloting a spaceship, the message is clear: logistics is going high-tech—and possibly high-drama. Now, if only someone could automate dodging potholes.

Industrial Warehouse Space

High prices meet low construction in a market snooze

Even as demand for warehouse space eased slightly in Q4 2024, lease prices remain as steadfast as a stubborn landlord. With new construction slowing to a crawl, the limited supply of facilities is keeping rents high. For tenants hoping for a market correction, it’s starting to feel like waiting for a sale on gold bars—unlikely and probably a bit optimistic.

The recent dip in warehouse demand in Q4 2024 isn’t exactly a crisis; it’s more of a recalibration after years of relentless growth. Companies are reassessing their logistics strategies after the pandemic-induced space race, but with tight supply and unbudging prices, the market feels less like it’s cooling off and more like it’s hitting the snooze button. If nothing else, it’s a good excuse to sharpen those lease negotiation skills.  

Warehouse Quick Deliveries

Canada reopens, a massive freight bill, and 2025 rate hikes

• USPS resumes accepting mail headed for Canada.

• One of the largest shipping bills we’ve seen in a long time.

• 2025 shipping carrier increases are going into effect, but negotiating leverage still exists.