Happy Friday!

What do whale sharks, cyber espionage, and inflation have in common? This week, they’re all hot logistics topics.

First, for the whale shark - it appears that heavily trafficked ocean shipping lanes intersect with critical feeding grounds of this endangered species. As for cyber espionage? It appears China might be caught red-handed conducting more surveillance – this time in the commercial shipping world. A cyber espionage group called Mustang Panda, which is allegedly linked to China, has been putting malware on the computer systems of shipping companies in Norway, Greece, and the Netherlands.

And in a world where every penny counts and inflation has been relentless, consumers are becoming increasingly picky about where they splash their cash! It's like they're saying, "Sure, I'll spend, but only if it's worth it!"

Who said logistics wasn’t interesting?

While you’re still thinking about sharks, spies, and what to spend your money on, take a break and read this week’s newsletter! We will catch you on what small businesses think about their e-commerce growth, what big changes are happening in the marketplaces, more Chinese tariffs, the fierce battle between UPS and FedEx on small shippers, the booming careers in the trucking and supply chain management industry, and more!

LOGISTICS VITALS

SMALL BUSINESSES ARE FEELING OPTIMISTIC ABOUT THEIR E-COMMERCE GROWTH IN 2024

According to the latest Alibaba survey, online sales will be a big deal for small businesses in 2024, as 75% foresee that online sales will greatly contribute to their overall strategy! Let’s take a closer look at what small businesses think about e-commerce growth:

• 84%: small businesses that are feeling cautiously optimistic

• 44%: small businesses that are feeling very optimistic

• 66%: small businesses that currently use AI

• 50%: small businesses feel that overall effectiveness of digital marketing is a barrier

Many small businesses are focused on e-commerce growth this year. And it seems like AI is going to be the new BFs of small businesses everywhere!

ONLINE MARKETPLACES

LABOR CHANGES, WORKER WOES, LEGAL BATTLES, AND GLOBAL EXPANSION HIT MARKETPLACES

Walmart is downsizing its corporate workforce, telling remote workers to return to the office. Some employees are even being asked to move to bigger corporate hubs! But don't worry—not all remote work is going away—some lucky ones get to work from home part-time. It looks like it's time to dust off those office desks and get back to the grind!

While Walmart workers are gearing up to report onsite, Amazon warehouse workers still struggle to afford food and rent. Even after Amazon bumped their wages to $15 an hour, 53% said in a survey that they didn't have enough to eat, and 48% had trouble finding a place to live. Interestingly, workers who took unpaid time off due to injuries were more likely to have financial difficulties. Looks like those bigger paychecks aren't solving all the problems at Amazon.

Meanwhile, in the TikTok vs. U.S. government saga, eight creators are joining the lawsuit fray against the U.S. government, which aims to ban TikTok. They argue that shutting down the platform would violate their First Amendment rights and disrupt an essential “part of American life.” But there’s also some corporate acquisition hope for TikTok as well – Billionaire Frank McCourt is in the mix to buy the company.

While the future of TikTok is still uncertain, Alibaba’s future is bright as it expands its logistics marketplace. Alibaba plans to expand beyond China and include more origin countries in its Logistics Marketplace. This move is part of Alibaba.com’s bigger-picture strategy to go beyond just connecting buyers and sellers. They're now helping businesses (especially small and medium sized enterprises) with fulfillment and cross-border shipping.

GLOBAL SUPPLY CHAINS

CHINA HIT WITH MORE U.S. TARIFFS

The White House stirred things up by announcing hefty tariff increases on an assortment of Chinese imports, including electric vehicle (EV) batteries, computer chips, and medical products. China wasn't too happy about it and promised to strike back. The U.S. is slapping these tariffs on about $18 billion worth of Chinese goods, from steel and aluminum to semiconductors and EVs. But let's be honest: the impact of these tariffs on Chinese EVs in the U.S. might just be more bark than bite.

And this hike in U.S. tariffs could also disrupt global supply chains and increase costs. According to Peter Sand, Chief Analyst at Xeneta, new tariffs could mean higher supply chain costs for businesses. With these new tariffs in place, businesses might start looking for new ways to get their goods into the U.S., like through Mexico.

WAREHOUSE AND LOGISTICS LEGISLATION

RETAILERS FACE PENALTIES FOR SHIPPING WASTE AND STATES CHALLENGE CALIFORNIA’S CLEAN FLEET MANDATE

NJ might start penalizing big retailers for bad shipping practices! A new law in Trenton aims to penalize retailers for using oversized boxes when packaging small items. Specifically, it would limit the size of shipping boxes to no more than two times the volume of the product being shipped. Is this the end of tiny online orders swimming in a sea of unnecessary cardboard?

And California’s zero-emissions battle just keeps raging, as 17 states are taking legal action against the state’s Advanced Clean Fleets (ACF) rule, similar to last year's lawsuits against the Advanced Clean Trucks (ACT) rule. This rule aims to stop companies from buying and driving trucks until they get a waiver from the Environmental Protection Agency. The difference from the last lawsuit? This time, it's not the truck manufacturers being targeted but the companies using the trucks. Regardless, both ACT and ACF rules have the same goal—a fully zero-emission-vehicle fleet in California by the mid-2040s!

FREIGHT AND SHIPPING

UPS AND FEDEX TARGETS SMALL SHIPPERS, WHILE USPS PARCEL SELECT FACES 25% PRICE HIKE

Good news for smaller shippers – you might just be more important (and profitable) to UPS and FedEx. Both delivery rivals fiercely compete to woo more small shippers as big clients bring deliveries in-house, switch providers, and face market declines. Experts say small and medium businesses are the real MVPs in this delivery showdown, bringing in the most volume and profits for carriers. So, it's no surprise that both UPS and FedEx are eyeing them like a juicy target in a slow-demand market. Perhaps it’s time to reach out to your rep and see just how much they love you?

But in other news, expect a 25% price hike for USPS Parcel Select starting July 14, 2024. This will affect consolidators like DHL eCommerce and Pitney Bowes who rely on Parcel Select for their deliveries. The exact price jump depends on where you fit into the Postal Service's network. Better start saving those pennies!

WAREHOUSE AND LOGISTICS LABOR

TRUCKING COMPANIES ATTRACT YOUNG TALENT AND SUPPLY CHAIN MANAGEMENT PROFESSIONALS THRIVE

Despite the push for autonomous trucks, truck driving appears to be a career full of options where the pay just keeps getting better! But trucking companies have having big troubles finding drivers. So, to attract younger audiences, trucking companies can attend high school and technical college career fairs and obtain training and certifications. Nonprofit organizations like Next Gen Trucking are partnering with schools to launch training programs combining hands-on experience and digital learning. But, the age barrier still exists, as most companies require drivers to be at least 21. However, programs like The Safe Driver Apprenticeship Pilot Program allow drivers under 21 to gain experience under supervision. With many options out there, it's time to rev up the trucking industry with fresh, young talent!

Life is also good for workers in supply chain management. With rising salaries and job satisfaction through the roof, it's a great time to be in the industry. In fact, the median salary hit a record $103,000, making it rain for supply chain pros. And no wonder 60% of respondents rated their careers an eight or higher on a 10-point scale. Looks like supply chain folks are here to stay, with 81% planning to stick around for at least the next five years. It's not all about the money though, as 85% of respondents take pride in their work, and 58% feel the love from their organizations.

WAREHOUSE QUICK DELIVERIES

INFLATION HITS SUPPLY CHAINS, WORKERS AT AMAZON CANADA UNIONIZE, AND MORE…

• Inflation is Hitting Supply Chains Hard

• Workers at Amazon Canada Warehouse have Unionized

• More Houthi Rebels Attack U.S. Destroyer and Commercial Ship in the Red Sea

• Exosuits are Saving Workers' Backs…Literally