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Holiday Shopping & US Economy
Gen Z Slashes Holiday Spending as Economic Pressures Mount
Gen Z plans to cut holiday spending by 34%—far deeper than any other generation—as rent, loans, and inflation squeeze young adults. Retailers are concerned since this group’s influence is rising despite limited current spending power. Many Gen Z consumers are opting for handmade gifts, secondhand shopping, and steep bargain hunting to stay within tight budgets.
Record Holiday Shoppers Drive $44.2B in Cyber Week Spending
U.S. consumers spent a record $14.25B on Cyber Monday and $44.2B over Cyber Week, with both turnout and average spend rising year over year, according to Adobe and NRF. Shoppers were highly value-driven, responding to deep promotions from Amazon, Walmart, and Target. Analysts note a more strategic consumer: deal-oriented, using AI tools to compare prices, and avoiding impulse purchases despite strong discounts.
Global Trade
Container Rates Tick Up as Trans-Pacific Headhaul Stabilizes
Drewry’s World Container Index rose 7% this week, driven by rate increases on key trans-Pacific and Asia–Europe routes. Carriers’ new strategy of smaller, weekly GRIs appears to be stabilizing spot rates ahead of contract negotiations. Despite improvements, uncertainty around Suez Canal disruptions could reintroduce capacity and pressure rates over time.
DOE Offers $134M to Boost Rare Earth Recovery Projects
The U.S. Energy Department is funding $134 million in projects that recover rare earth minerals from waste streams such as mine tailings and discarded electronics. The initiative aims to reduce reliance on foreign suppliers and strengthen domestic critical mineral capabilities. It follows several recent federal actions to spur mining, processing, and advanced material innovation.
Nexperia Dispute Highlights Auto Supply Chain Geopolitical Risks
The semiconductor turmoil at Nexperia, triggered by Dutch government intervention and China’s export halt, underscores how geopolitical disputes can instantly disrupt automotive supply chains. Moody’s warns automakers to diversify component sourcing and strengthen governance oversight. Multi-sourcing strategies, real-time supplier visibility, and continuous stress testing are now essential for resilience.
Data Center Megaprojects Drive Construction Boom and Project Cargo Surge
A wave of billion-dollar data center, manufacturing, and LNG projects is fueling an 8–23% jump in U.S. construction activity and a corresponding rise in project cargo. Facilities like Meta’s massive Hyperion Data Center and Venture Global’s CP2 LNG terminal are generating heavy-lift, breakbulk, and infrastructure demand. Suppliers from Caterpillar to SLB are expanding capacity to meet skyrocketing power and equipment needs tied to AI-driven data growth.
Trucking
10 Roads Express to Shut Down After Massive USPS Revenue Loss
10 Roads Express is closing permanently after losing 70% of its USPS-driven revenue due to the Postal Service’s operational changes. The shutdown will lay off roughly 2,000 workers and end contracts on Jan. 30. Leadership says USPS insourcing and broker use made the business unsustainable, compounding ongoing legal and financial pressures.
Large LTL Carriers See Modest Volume Gains, But Market Still Soft
XPO and Saia posted slight shipment increases in November, while Old Dominion maintained strong pricing despite lower volumes. The LTL Producer Price Index dipped for the first time since May but remains nearly 10% higher than last year, indicating continued pricing discipline. Analysts warn that high inventories and soft manufacturing demand may limit future freight activity.
TIA to Aggregate Cargo Theft Reporting for FBI
The Transportation Intermediaries Association launched a hotline to collect cargo theft and fraud reports from brokers and pass them to the FBI. The move addresses confusion over reporting channels and supports federal efforts to build large-scale RICO cases. Rising theft and fraud have pushed some shippers to avoid brokers altogether, increasing urgency for industry-wide mitigation.
DOT Scrutiny of Immigrant Truck Drivers Raises Industry Concerns
Federal audits and proposed restrictions on non-citizen CDL holders are causing fear among immigrant drivers, who make up roughly 20% of the workforce. While decertifying noncompliant driving schools may improve safety, industry leaders worry it could constrain driver supply and lengthen training wait times. Some carriers report losing experienced immigrant drivers who fear harassment or are unable to renew licenses under tightening rules.
Parcel & Final Mile
FedEx and UPS Raise Fuel Surcharges Amid Rising Costs
FedEx and UPS are increasing their fuel surcharge calculations—1.5% and 1% respectively—adding further pressure to shippers already facing elevated parcel costs. Consultants note that fuel surcharges have risen far faster than actual fuel prices, significantly boosting carrier revenues. Executives say the increases are bolstering per-package profitability in an otherwise competitive pricing environment.
UPS and FedEx Pilots Resume Contract Talks Amid Fleet Groundings
UPS pilot negotiations have restarted with federal mediators as both UPS and FedEx grapple with grounded MD-11 fleets following safety findings. Pilots argue they deserve compensation comparable to passenger airline peers after years of pandemic-era support. FedEx’s prolonged, contentious talks continue as pilots express frustration over outsourcing, quality-of-life issues and corporate restructuring.
Amazon Tests 30-Minute Delivery in Seattle and Philadelphia
Amazon Now is piloting ultra-fast, 30-minute delivery for groceries and essentials from small, strategically located fulfillment centers. The program supports Amazon’s rapid-delivery ambitions and could challenge the immediacy advantage of in-store shopping. While margins may be slim initially, analysts say it strengthens Prime’s value and boosts Amazon’s growing services revenue.
SpeedX Opens Chicago Superhub to Accelerate Parcel Delivery
SpeedX has unveiled a Chicago superhub capable of processing 500,000 parcels per day, part of the startup’s rapid expansion to serve 12,000+ ZIP codes. The new facility strengthens its national network and supports major clients like Shein, Temu, TikTok Shop, and Amazon. As low-cost carriers scale aggressively, analysts question whether the market can support so many competing delivery networks.
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