Warehouse Wisdom. Weekly. 12/13/2024

Happy Friday!

If you’re still scrambling for last-minute stocking stuffer ideas, why not delight your loved ones with the gift of someone else’s unopened mail? Yes, unclaimed mail has apparently become the it gift of the season. Nothing says “I care” quite like an envelope of mystery—your cousin might get a rare collector’s item, or perhaps just someone else’s favorite outfit. The joy is in the suspense!

In other uplifting logistics news, an orange juice tanker has officially set a new bar for multitasking. Not only did it deliver everyone’s favorite breakfast beverage, but it also moonlighted as a rescue vessel, saving a stranded solo sailor in the Atlantic. Citrus: it’s not just for scurvy prevention anymore. But don’t worry, we’re not just here for quirky headlines.

This week’s update covers the continuing Canada Post strike debacle, massive price hikes for oversize parcels, the latest skirmishes in the tariff war of words, porch pirates running wild, drones flying faster and quieter than ever, and much more. Let’s dive in!

Freight and Shipping

Strikes, surges, and sticker shock

Another week, another reminder that Canada Post’s unresolved strike is hitting Canadians where it hurts most—right in the wallet. As frustration mounts, courier costs are climbing faster than the thermometer in a greenhouse. If you’re shipping across Canada, prepare to pay more than you’d like to admit, or consider reviving the Pony Express. At this point, it might be cheaper.

Meanwhile, in the U.S., the Teamsters have drawn their line in the sand, giving Amazon until December 15 to set bargaining dates for their delivery drivers. The message is clear: If Amazon doesn’t come to the table, the Teamsters might just flip that table over. With thousands of drivers potentially affected, the e-commerce giant could be facing some serious delivery delays—perfect timing for peak holiday chaos.

Shipping large parcels? Brace yourself for some sticker shock in 2025. FedEx and UPS are rolling out hefty fee increases for oversize shipments, ensuring that sending anything larger than a shoebox feels like buying a first-class plane ticket. If your business relies on bulky product deliveries, now might be a good time to revisit your logistics strategy—or start specializing in featherweights.

For those eyeing a de minimis strategy under Section 321, tread carefully. While the promise of duty-free thresholds is tempting, the complexities involved could outweigh the benefits. E-commerce shippers would do well to think twice before diving into this murky regulatory water—it’s not all smooth sailing, and missteps could leave you sunk.

Global Ocean Freight

Tariffs, tensions, and trade wars

As we wrap up 2024, the logistics world remains enthralled by the drama of tariffs. The latest plot twist comes courtesy of the current administration, which has unveiled fresh tariff hikes targeting China. Because clearly, nothing says “holiday spirit” quite like a little trade war escalation. Businesses relying on Chinese imports should probably add “anxiety management” to their 2025 budgets.

Of course, China isn’t sitting this one out. The country has announced plans to issue more debt and cut interest rates in the coming year. Translation: they’re gearing up for a long game. It’s a classic game of economic chess, and for anyone involved in global trade, the stakes just keep climbing. Adjust your logistics strategies accordingly—or buy a stronger coffee.

Not to be left out, Canada is bringing some heat to the tariff conversation—literally. Ontario’s Premier has threatened to cut off energy exports to the U.S. in response to escalating tariff tensions. Energy supplies and trade relations are clearly being lumped into one chaotic stew.

Meanwhile, U.S. retailers are scrambling to stay ahead of the tariff fallout. With the NRF predicting a surge in container imports, it seems everyone is rushing to avoid stockouts while they still can. Add failed U.S. port negotiations to the mix, and it’s looking less like a supply chain and more like a pressure cooker.

And just to round out the week’s tension, conflict at sea continues. The U.S. military has once again thwarted Houthi attacks on American cargo and military vessels.

Logistics Vitals

Porch pirates strike gold

Porch pirates are having their best holiday season yet, wreaking havoc on deliveries and leaving retailers to foot the bill. According to SafeWise’s 2024 Package Theft Report, package theft is costing billions and shows no signs of slowing down. Strategies to combat theft, such as secure lockers and delivery notifications, are becoming critical to protect goods and retain customer trust.

• 260,000 incidents of package theft occur daily across the U.S.

• $16 billion worth of goods was stolen in 2023.

Warehouse Tech and Sustainability

Carbon footprints, self-driving trucks, and ninja drones

California’s emissions disclosure rules just got a one-year grace period, because even regulators understand that companies need a little extra time to figure out how to measure the invisible. This extension offers a reprieve to businesses that were scrambling to comply, though critics might argue it’s just delaying the inevitable. Either way, it’s a reminder that in California, you can run, but you can’t hide—from your carbon footprint.

DHL is officially putting tech behind the wheel, rolling out Volvo’s self-driving trucks to haul freight across Texas. Autonomous freight is no longer science fiction; it’s a reality—and possibly the future of logistics. For now, the trucks are being monitored by safety drivers, but one has to wonder: Will they get a coffee break if the trucks don’t?

The U.S. Postal Service’s big electric vehicle rollout is hitting a roadblock, courtesy of Congress. Lawmakers are signaling they’ll claw back funding for most of the planned EV fleet, citing cost concerns. So, while USPS might have had visions of shiny new electric trucks, it looks like they’ll be sticking with their gas-guzzling workhorses a little longer. Progress, but make it incremental.

Amazon’s drones are getting a sleek upgrade, with the new MK30 models promising to fly twice as far and make half the noise. This means faster, stealthier deliveries that might even go unnoticed by nosy neighbors—or porch pirates. While we’re not quite at sci-fi levels of drone dominance, it’s clear Amazon is determined to redefine the skies one package at a time.

Online Marketplaces

TikTok’s countdown, AI’s takeover, and the truck gap in e-commerce

January 19 is approaching fast, and with it, the potential end of TikTok’s reign in the U.S. If the app is banned, Meta and YouTube stand poised to grab the spoils, especially in the form of ad dollars and retail partnerships. For now, retailers should start planning for a world where TikTok’s “For You” page might just be “For China Only.” The stakes are high, and the dance challenges are decidedly lower.

Alibaba isn’t just dabbling in AI—it’s going full throttle. From virtual try-ons for diverse skin tones to enhanced photo and video features, the e-commerce giant is rolling out tools designed to help small and mid-sized businesses lower marketing costs and boost engagement. It’s a clear signal: the future of online marketplaces is personalized, optimized, and, apparently, AI-powered.

While businesses are diving headfirst into AI, consumers are cautiously wading in. They’re intrigued by the possibilities but hesitant due to ongoing privacy and security concerns. It seems AI can predict what you want to buy, but it hasn’t quite convinced buyers that their data is safe. Trust, it seems, is the real currency in this new AI-driven marketplace.

Warehouse Quick Deliveries

Scheduled deliveries, legal battles, and donut disasters

• More retailers like Best Buy are launching scheduled deliveries.

• Albertsons sues Korger over failed merger.

• Kristy Kreme’s tech was hacked, impacting online orders in particular.