Warehouse Wisdom. Weekly. 03/07/2025

Happy Friday!

Let’s start the week’s news recap with a big of eggs, shipping induced subscription services, and online product searching. Egg prices are up again, and no, it’s not just the avian flu’s fault. Turns out, supply chain complexities and market dynamics are working their magic to make your morning omelet a little more luxurious (like corporate consolidation and price fixing). Meanwhile, e-commerce customers have apparently decided that free two-day shipping just isn’t fast enough—subscription services are turning premium shipping into the latest must-have. And speaking of online shopping, a new study suggests that when consumers are searching for a product, they’re, gasp, more likely to buy it. Okay, really, it’s worth looking at the report.

This week, the latest logistics and warehouse news doesn’t disappoint, including Alibaba joining forces with Maersk, a major bid to buy up Panama’s ports, railroad theft spiraling out of control, the surging global demand for U.S. warehouse space, and much more. Let’s dive in.

Global Logistics

BlackRock dives into ports and de minimis clings to life

Big moves are happening in Panama, where BlackRock has struck a deal to acquire two ports. The deal is already drawing geopolitical attention, with whispers of how this might shift trade routes and influence in the region. But for now, we’ll just say that if you thought BlackRock only dealt in stocks and bonds, think again—they’re now in the business of containerized capitalism.

And the much-anticipated rollback of the de minimis exemption for Canada and Mexico has been delayed, meaning cross-border e-commerce will continue enjoying its duty-free privileges—for now. Originally the initiative aimed at tightening trade enforcement, the policy shift would have meant more scrutiny (and likely more costs) for shipments heading south and north. But delays are the name of the game in logistics, so consider this just another item stuck in regulatory limbo.

Marketplaces

Alibaba teams with Maersk, Amazon upsells smarter, and more retailers brace for uncertainty

Alibaba and Maersk have decided to shake hands and play nice, teaming up to offer container shipping services to Alibaba customers. This partnership aims to streamline logistics for Chinese exporters, giving them direct access to Maersk’s vast network. In other words, Alibaba just found another way to make sure its sellers’ goods don’t get stuck in a port backlog while you refresh your tracking number for the tenth time.

Meanwhile, Amazon is giving Alexa a brain-boost with new AI-powered features—if you're willing to pay for it. The tech giant is rolling out Alexa Plus, which promises more natural interactions and better shopping assistance. Essentially, it’s Alexa 2.0: now with the ability to upsell you even more effectively.

Google is also stepping up its e-commerce game, introducing Vision Match and Try-On capabilities to make online shopping more interactive. Now, instead of rolling the dice on whether that new pair of sneakers will look good, you can virtually see them before clicking “add to cart.” Retailers are banking on this tech to reduce returns, but let’s be real—if someone wants to justify a questionable fashion choice, no amount of AI is stopping them.

Speaking of AI, retailers are now using it to fight back against rising tariffs and inflation. Instead of just accepting higher costs, companies are deploying AI-driven pricing strategies, supply chain optimization, and demand forecasting to stay ahead.

And in the world of big-box retail, Target pulled off a solid Q4, beating projections—only to turn around and warn that softness is ahead for the new fiscal year. Basically, the good news is already old news, and uncertainty is the new normal. If this sounds familiar, it’s because Walmart said pretty much the same thing last week. Looks like 2025 is shaping up to be the year of cautiously optimistic pessimism in retail.

Logistics Vitals

Logistics sector hits highest activity growth since 2022

In February, the logistics sector experienced a notable uptick in activity, reaching its highest growth rate since June 2022.

• The Logistics Managers' Index (LMI) rose to 62.8 in February, up from January's reading of 62.

• An LMI above 50 indicates expansion in the sector; a reading below 50 indicates contraction.

• Inventory levels are up 15 points for the first two months of the year.

Freight and Shipping

Rail thefts surge, new delivery players emerge, and more trucks ditch their drivers

Railroad theft is officially out of control, with losses topping $100 million in 2024. It seems that criminals have fully embraced the supply chain sector—though, unfortunately, they’re not exactly contributing to on-time deliveries. With everything from electronics to auto parts vanishing into the ether, railroads are now pushing for better security measures and tougher penalties.

On the parcel side, UniUni is making big moves, planning to cover 70% of the U.S. by September and throwing its hat in the ring against FedEx and UPS. The Canada-based delivery company is betting that speed and competitive rates will win over e-commerce retailers looking for alternatives. Whether it can take a real bite out of the competition remains to be seen, but hey, given the state of shipping costs, more competition is rarely a bad thing.

The USPS isn’t sitting back and watching, however. The postal service has officially launched Priority Mail Next Day in 54 markets, because why let private carriers have all the fun? Sure, USPS has had its fair share of logistical struggles, but if they can pull this off at scale, they might just become a real player in the premium shipping game. And if nothing else, at least their tracking updates might be slightly more accurate than usual.

And finally, if rail theft and delivery wars weren’t enough excitement, driverless freight trucks are getting closer to continuous commercial operations this year. Bot AI has plans to roll out self-driving trucks in Texas and beyond.

Commercial Warehouse Space

Asian logistics firms secure 20% of U.S. warehouses

Asian logistics companies are making themselves right at home in U.S. warehouses, accounting for 20% of all leases in 2024. With demand for faster e-commerce fulfillment and supply chain diversification in full swing, these companies are locking in space at a record pace. Some might call it strategic expansion—others might just say they’re securing the square footage before rents climb even higher. Either way, if you were wondering who’s been snatching up all the prime warehouse real estate, now you have your answer.

Warehouse Quick Deliveries

Wait for it…more tariff updates.

• The tariff war begins.

• But auto makers get a break.

• And Mexico tariffs are paused until April 2nd (as well as some Canadian tariffs).

• Of course you know what they could do to cross-border shipping rates.