Warehouse Wisdom. Weekly. 12/27/2024

Happy Friday!

As we wrap up another year in logistics, it's hard not to reflect on just how chaotic it has been. The once mundane world of logistics has become dynamic, high-tech, disruptive, and downright crazy – so crazy, in fact, that even delivery drivers are stressed to the max. This week, a stressed Amazon driver who, apparently overwhelmed by the pressure of the holiday rush, decided to abandon 80 packages in the woods. We understand…

Meanwhile, Egypt's Red Sea woes continue, with the country losing $7 billion due to ongoing challenges with the Suez Canal. The only real winners seem to be the Houthis and ocean carriers, who have managed to turn this maritime crisis into a somewhat profitable venture.

In our final newsletter of the year, we’re looking at a few other stories that shaped the week. Mexico has delivered a one-two punch to border skipping and tariff-free textile imports, while multiple bankruptcies and bulk store closures have raised concerns for the retail sector. We’re also seeing shifts in seasonal jobs, and the legal mess with Amazon and Walmart continues, with new lawsuits added to the mix. Let’s dive in for the last time in 2024.

Global Freight and Shipping

The free ride is over for tariff dodgers and border skippers in Mexico

Mexico has decided it’s had enough of being the logistics Wild West. The country has officially closed the border-skipping loophole that e-commerce companies have been exploiting to dodge duties. For those unfamiliar, this clever trick involved routing goods through Mexico to magically bypass customs fees when entering the U.S. Apparently, Mexico wasn’t thrilled about playing middleman in this game of tariff hot potato. Now, companies will have to face customs like the rest of us mortals.

But Mexico isn’t stopping there—it’s also turning the screws on textile imports, raising tariffs by up to 35%. Clearly, someone in Mexico City woke up and chose enforcement. The move aims to curb the flood of cheap goods undermining local industries. While that’s great news for domestic producers, it’s probably a bit less thrilling for importers trying to keep margins in check. Let’s just say your favorite fast-fashion brand might be feeling the squeeze soon.

Meanwhile, in a plot twist no one saw coming (except everyone), entire countries are still finding innovative ways to skirt tariffs. From mislabeling goods to outright rerouting them, the creativity is truly inspiring—if only it weren’t blatantly illegal. The U.S. may need to start treating tariff evasion like a competitive sport, complete with gold medals for the most audacious attempts. Until then, global trade remains a high-stakes game of cat and mouse.

Warehouse & Logistics Operations

Ergonomics and junk fees slap Amazon and Walmart in the face

Amazon is apparently trading Prime speed for prime ergonomics, agreeing to company-wide improvements aimed at reducing worker injuries. After years of reports about fulfillment centers being less “fulfilling” and more grueling, this feels like a step in the right direction—assuming the changes are more substantial than swapping breakroom chairs for yoga balls.

Meanwhile, Walmart is under fire for allegedly imposing junk fees on delivery drivers, with the CFPB stepping in to investigate. Between ergonomic overhauls and lawsuits over “illegal deposit accounts,” it’s clear that logistics giants are feeling the holiday heat in more ways than one.

Logistics Vitals

YOY port growth proves supply chains can still deliver

U.S. ports are ending the year on a high note, reporting year-over-year (YOY) increases in cargo volumes for November 2024, signaling resilience in the face of economic uncertainty and ongoing global supply chain challenges.

• The Port of Los Angeles reported a 16% YOY increase

• The Port of Long Beach increased 20.9%.

• Seattle and Tacoma ports jumped 25.7%.

• And the Port of Houston saw a cargo volume increase of 24%.

Retail Marketplaces

Party City, Big Lots, and The Container Store join the holiday bankruptcy club

It seems the ghosts of retail past have made an unwelcome return this holiday season. Party City, the go-to destination for plastic tablecloths and helium balloons, has filed for bankruptcy. The culprit? Mounting debt and declining demand for disposable party supplies. Apparently, themed birthday parties aren’t recession-proof after all.

Meanwhile, Big Lots has decided to bypass the bankruptcy process entirely and head straight for the exits, announcing the closure of all 908 stores. The retailer is holding a massive liquidation sale, so if you’ve ever wanted to stock up on discount furniture and off-brand home goods, now’s the time. For Big Lots, it’s not just “out of stock”—it’s out of business.

As if that weren’t enough, The Container Store has joined the retail doomsday club, filing for bankruptcy earlier this week. It turns out the promise of perfectly organized pantries wasn’t enough to keep the lights on. For logistics and warehousing, these closures mean more empty shelves and more vacant real estate.

Warehouse and Shipping Jobs

Seasonal workers embrace the conveyor life

It’s official—seasonal job seekers have traded Santa’s workshop for Amazon’s fulfillment centers. As consumers continue their love affair with online shopping, seasonal employment is shifting from retail floors to e-commerce warehouses. Instead of folding sweaters and dodging impatient holiday shoppers, these workers are now racing to pack boxes at lightning speed. The upside? No awkward customer exchanges. The downside? Getting up close and personal with conveyor belts and shrink-wrap machines. Welcome to the future of holiday cheer, where fulfillment centers—not malls—are the heart of seasonal hustle.

Warehouse Quick Deliveries

Amazon strikers get soaked and 2025 promises more logistics unpredictability

• Flood of water hits striking Amazon employees.

• Looking forward to an unpredictable 2025 in logistics.