Warehouse Wisdom. Weekly. 02/28/2025

Happy Friday!

Just when you thought supply chain disruptions couldn’t get more dramatic, we now have full-blown train heists. Yes, you read that right. Nike has lost millions due to thieves stealing shoes instead of gold or silver. Meanwhile, for those in e-commerce, there’s a new challenge: your customers apparently want good news. Okay, maybe we should re-write our intro…

This week, we’ll be covering how in-store shopping is getting even worse (yes, that’s possible), new port fees coming for China, Amazon making a bold move into the LTL market, and more. Let’s dive in.

Global Logistics

New port fees coming and dockworkers sign 6-year deal

The U.S. is close to launching a new set of proposed port fees on Chinese ships and shipbuilding. And a fresh batch of international duties is set to take effect on March 4th, targeting imports from Canada and Mexico.

Meanwhile, in an attempt to prevent future shipping nightmares, the Panama Canal is moving forward with plans for a new reservoir to address its ongoing water crisis. After last year’s historic drought sent carriers scrambling for alternative routes, officials are hoping this project will help keep one of the world’s most important trade arteries from becoming a glorified puddle. Fingers crossed.

There’s some rare good news on the ocean freight front—container rates are falling. While they’re still higher than this time last year (because of course they are), shippers can at least enjoy a slight reprieve from the record-breaking costs of the past two years. Just don’t celebrate too hard—if history has taught us anything, it’s that rate volatility is the only constant.

And finally, in a rare display of quiet efficiency, U.S. dockworkers have approved a new six-year labor contract without the usual public spectacle. No drawn-out strikes, no last-minute threats of port shutdowns—just a simple vote and an agreement in place. It’s almost unsettling how smoothly this went, but we’ll take the win where we can get it.

Marketplaces

In-store shopping becomes miserable and fast shipping becomes easier

The internet was supposed to make shopping easier, but apparently, it’s just making in-store experiences miserable. Between price-matching battles, endless online-exclusive deals, and stores turning into glorified pick-up centers for e-commerce, brick-and-mortar shopping is now a test of patience. If you’ve ever tried to buy something in-store only to be told, “You can order it online,” congratulations—you’ve been personally victimized by the digital age.

Meanwhile, eBay is leaning into fast shipping, making it easier for shoppers to find items that actually arrive on time. The marketplace is tweaking its search features to highlight local listings and rapid delivery options. Better late than never.

Over in the world of fast fashion, Shein’s profits have taken a 40% hit, throwing a wrench into its IPO ambitions. Turns out, relying on ultra-low prices and questionable labor practices isn’t the foolproof business model some thought it was. Investors might be sweating, but at least customers can still get a $5 dress shipped across the globe in record time.

In Canada, retail sales dipped in January after a strong December. Consumers tightened their wallets after their December splurges, leaving retailers to wonder if all those Boxing Day discounts were worth it.

And UK retail sales actually rose 1.7%, because British shoppers didn’t get the memo about post-holiday belt-tightening. Whether this is a sign of consumer confidence or just people panic-buying before the next economic curveball remains to be seen.

And finally, Temu sellers are back at it again, finding new ways to dodge taxes—this time by pretending to be UK-based businesses. It’s a creative, if not entirely legal, approach to cost-cutting. Regulators are scrambling to crack down, but given Temu’s track record, it’s safe to assume there’s already another loophole waiting in the wings.

Logistics Vitals

E-commerce is growing faster than your cart total at checkout

U.S. ecommerce sales continue to outpace total retail sales, growing at more than six times the rate of overall sales in Q4 2024.

• Ecommerce sales in Q4 2024 grew 9.3% increase year over year.

• Ecommerce accounted for 24.6% of total retail sales in Q4 2024, the highest penetration on record.

• Mobile accounted for 54.5% of all e-commerce holiday sales.

U.S. Freight and Shipping

Why not take over LTL, says Amazon?

Amazon has decided that dominating e-commerce, warehousing, and parcel delivery just wasn’t enough—so now it’s coming for the LTL market. The retail giant is reportedly thinking about developing its own less-than-truckload (LTL) unit, aiming to shake up yet another sector of the logistics industry. Because if there’s one thing carriers and 3PLs needed, it was the added thrill of competing with a company that redefines “disruptive” on a daily basis. Buckle up, LTL providers—Amazon’s not here to play nice.

Commercial Warehouse Space

Urban warehouses multiplying pollution

As same-day delivery demand skyrockets, so does something else—pollution. With urban warehouses multiplying faster than your unread emails, cities like New York are scrambling to manage the environmental fallout. More trucks, more emissions, and more congestion are now part of the price we pay for getting a phone charger delivered in under two hours. Officials are looking at ways to clean up the mess, but let’s be honest—unless drones or teleportation suddenly become viable options, the logistics of greener logistics are still a work in progress.

Warehouse Quick Deliveries

93% reach in same-day delivery, ocean pricing power diminishing, and TFI reverts its course

• Walmart can now reach 93% of U.S. households with same-day delivery.

• Ocean carriers pricing power may be plummeting.

• Wait a minute – course reversal. TFI reverts its redomiciling plan.