Warehouse Wisdom. Weekly. 04/11/2025

Happy Friday!

Before we dive headfirst into the bottomless pit of tariff talk, let’s indulge in a brief detour through the ever-enlightening world of AI—where the robots aren’t quite stealing jobs yet, but they are judging our inefficiency. Shopify’s CEO Tobias Lütke has officially issued a survival notice to employees: master AI or prepare to be outpaced (or possibly outsourced to a chatbot with a minor in Excel). Meanwhile, a healthy 60% of companies are staring at their AI investments wondering if there’s a return policy. Not to worry though—Ranpak reminds us that there’s still hope for humanity, as AI continues to “assist” warehouse workers rather than replace them. For now.

Now that we’ve reassured ourselves that the machines aren’t fully in charge, we’ll catch you up on this week’s news: the never-ending tariff saga, TikTok and Temu’s brush with collateral damage, pricing pressure in ground shipping, 3PLs bracing for impact, and more. Let’s jump in.

Global Logistics

U.S. and China play game of chess while Brazil and Mexico get quiet boost

There’s no two ways around it—global trade is having a bit of a moment. The U.S. just turned the tariff dial up to 125% on Chinese imports. Naturally, China fired back with its own tariff hikes, and Shein is now caught in the middle, trying to explain to Beijing why moving production abroad isn't personal—it's just business. Amazon, never one to wait for the dust to settle, has already started canceling inventory orders from China, likely while furiously rewriting their sourcing playbook for the sixth time this year.

Meanwhile, the EU seems to have opted for a 90-day timeout, delaying their own U.S. tariff implementation. Maybe they’re just waiting to see who blinks first. Regardless, they’re on pause—for now—which, in the current climate, almost qualifies as stability.

But not everyone is sweating. Brazil and Mexico are both catching some unexpected trade winds. Brazil’s ports are busier than a Starbucks on a Monday morning, with China sniffing around for friendlier partners. And Mexico? They’re quietly relishing their tariff-proof glow-up, having emerged from this round of trade roulette with a competitive edge over Asia. Turns out, proximity still has perks.

Marketplaces

Tiktok at the heart of the trade war and e-commerce merchants are in survival mode

It was a big week in the world of online marketplaces, and not just because everyone’s still pretending to understand how AI works. Let’s start with TikTok, which is apparently now more than a platform for dance videos and questionable financial advice—it’s also a bargaining chip in the escalating U.S.-China tariff spat. China just nixed a potential TikTok deal, reportedly in response to the new wave of tariffs.

Over in Europe, Temu is making a bold move, expanding its logistics network on the continent through a partnership with DHL. If you were wondering how Temu planned to keep shipping novelty socks and cheap gadgets across borders at lightning speed, now you know.

Meanwhile, Amazon continues its campaign for total e-commerce domination. It’s piloting a new “Buy for Me” AI tool. On top of that, it’s doubling down on B2B. Small pivot, big ambition—and maybe a mild existential crisis for office supply distributors everywhere.

Not everyone is thrilled with the digital powers that be, however. Independent sellers are growing increasingly frustrated with Google’s latest AI search changes, which appear to have buried them somewhere around page 74 of search results. If your traffic fell off a cliff, congratulations—you’re not alone, and yes, it’s probably Google's fault.

And if you're just trying to keep your e-commerce business breathing in this whirlwind, there’s a handy list of 2025’s top 10 sales strategies to peruse.

Logistics Vitals

Old guard still wins Amazon game

Despite the influx of new sellers, it's the Amazon veterans—those who joined before 2019—who continue to run the show. These seasoned sellers are not only sticking around, but they’re also expanding their grip on the marketplace.

• Sellers who joined Amazon before 2019 now account for 60% of total sales on the platform.

• Less than 5% of top Amazon sellers in 2024 are newcomers who joined in the past year.

• In contrast, 30% of top sellers are pre-2016 sellers.

• Less than 8% of all seller registrations before 2019 remain active.

• Growth is increasingly concentrated: many veteran sellers are scaling into multi-million-dollar operations, while new sellers face rising competition and visibility challenges.

Freight and Shipping

Shipping costs climb, USPS aims high, and NYC traffic fees linger

If you were hoping for a break on shipping costs this year, feel free to lower those expectations—along with your parcel volume. According to new data, ground delivery rates are trending upward, and not just by a little. The cost increases are being driven by a cocktail of factors including fuel, labor, and other factors. Retailers and shippers alike are being advised to brace for a costlier second half of 2025.

Meanwhile, the USPS has decided it's time for another price hike, this time proposing to raise the cost of a domestic letter to 78 cents.

UPS is also busy tweaking its ground delivery offerings, adding more options and increasing flexibility in an effort to remain competitive. The company is trying to appeal to a range of shippers as pricing and service expectations continue to shift.

And just in case city logistics weren’t complex enough, New York City’s congestion pricing plan looks like it’s going to drag on for a few more months. The delays are being chalked up to “litigation and logistics.”

Warehouse and Logistics Operations

High rent, low margins, and a 3% raise

Seaside warehouses—once the crown jewels of logistics real estate—may be the next unintended casualties of the evolving tariff landscape. With Chinese imports now facing steep 125% duties, the premium locations once prized for their proximity to ports might suddenly find themselves a little too conveniently located… to the wrong kinds of goods. If you're holding coastal warehouse space and banking on import volumes, it might be time to revisit those lease terms—or at least dust off the “For Sublease” sign.

Third-party logistics providers aren’t faring much better. After years of expansion, the sector is running headfirst into slowing volumes, tighter margins, and that fun little thing called economic uncertainty. Many 3PLs are now being forced to rethink pricing strategies, service offerings, and—dare we say—expectations. It's a tough season for middlemen in the middle of a downturn.

On the labor front, Canadian National Railway employees scored a 3% wage increase through arbitration. The raise applies to workers represented by the Teamsters Canada Rail Conference, and while it may not break the bank, it’s another cost line that logistics operators will be quietly threading into next quarter’s budget.

Warehouse Quick Deliveries

Fee reversals, Panama pressure, and a 3PL retreat

• U.S. reverses course on proposed Chinese port fees.

• Panama port auditor says port operator owes millions.

• And the Panama Canal launches an energy pipeline bid process.

• Fast-growing 3PL Shipmonk closes Bay Shore warehouse.

• Egg prices climb to record high?