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Logistics feels like musical chairs lately — and not everyone's finding a seat when the music stops. This week, Pitney Bowes is bowing out of the e-commerce game, while DHL and FedEx are jostling for position in the China-US express lane. There’s also a wave of layoffs in the sector, with companies cutting jobs faster than you can say "supply chain." Meanwhile, Maersk is trying to keep one foot on the gas, and one on the brake with its new fleet, and Yellow Corp's creditors are watching their hopes sink like a ship laden with attorney fees. To top it all off, there's a whiff of labor unrest in the air at US ports, sending retailers into a pre-holiday panic. Let's get started.
Pitney Bowes is throwing in the towel on its e-commerce logistics unit. With the company announcing that many of its parcel delivery and returns services will stop operating in the coming weeks, what’s really going on behind the scenes, and what does it mean for the industry?
Pitney Bowes sold most of its Global Ecommerce (GEC) unit to Hilco Global, a financial services firm tasked with liquidating and winding down the business through Chapter 11 bankruptcy. The company expects to complete this process by early next year. While Pitney Bowes claims this move is for the greater good, aiming to boost its results in 2025, the reality is they've been under pressure from investors for some time due to the unit's persistent losses.
GEC's revenue grew 7% year over year in Q2, riding on higher domestic parcel volumes. But there's a catch — it still posted a $31 million loss in adjusted earnings before interest and taxes. Pitney Bowes didn't mince words, stating, "The GEC segment had been struggling to achieve profitability over the past several years in the face of macroeconomic and industry headwinds."
Get ready for some sticker shock on your DHL Express shipments. The logistics giant is rolling out a peak season surcharge starting September 15, as announced during their August 1 earnings call. Why the extra fee? DHL points to the skyrocketing e-commerce volumes from China, which are cranking up the seasonal pressure.
Chinese online retailers are shaking things up big time. While they're not DHL's main customers, their explosive growth is causing ripple effects across the entire market. DHL CFO Melanie Kreis put it bluntly: "Seasonality got more extreme over the last year." At the same time, the surge in demand, especially out of Asia, is making air cargo capacity tighter than ever.
DHL isn't alone in feeling the heat. The entire air cargo industry is bracing for a wild fourth quarter. Rivals like UPS have already announced their own peak season surcharges, with FedEx expected to follow suit. Some freight forwarders are even launching their own charter flights to handle the volume. It's a clear sign that the logistics world is racing to keep up with an insatiable appetite for online shopping.
DHL isn’t the only one trying to take full advantage of the China e-commerce boom. FedEx is throwing more fuel on the fire by expanding its FedEx International Connect Plus service to give Chinese merchants a fast track to U.S. and European customers.
FedEx is rolling out the red carpet for China's online sellers. Their beefed-up service promises to deliver those must-have gadgets and fashion finds to US and European doorsteps in just 2-3 business days. It's tailor-made for lighter, less urgent packages — think trendy accessories rather than bulky furniture. And with the rapid growth of cross-border e-commerce in China, it’s clear many local e-tailers have their eye on global expansion.
FedEx isn't the only player in this game. UPS is bragging about a 20% jump in China-to-US shipments last quarter. It's a profit goldmine, and everyone wants a piece. FedEx is sweetening the deal for merchants with simple pricing and no extra charges for home deliveries. So get ready for an even bigger flood of tempting deals from across the Pacific.
Five freight and logistics firms are spearheading 1,234 job cuts — the industry's third layoff wave since July. From global giants to local couriers, no one is safe as market pressures mount.
Geodis, a global freight transport giant, is slashing 384 jobs across four states after losing a contract with client Casestack. They're closing facilities in Texas, Georgia, and New York while downsizing in Illinois. Bimbo Bakeries USA isn't far behind, shuttering operations in San Antonio, Texas, and two New York locations. Their cuts will affect 269 workers who produce baked goods for brands like Sara Lee and Thomas.
The pain isn't limited to the big fish. After losing a client contract, Neovia Logistics Services is laying off 96 employees and closing a distribution center in Romeoville, Illinois. Quality Custom Distribution (QCD) is consolidating operations in San Antonio, Texas, letting go of 57 workers, including 26 truck drivers. Even Amazon delivery partner Dave's California Logistics is feeling the heat, closing its Orland distribution center and cutting 80 jobs. These smaller-scale layoffs might not grab headlines, but they're just as impactful for the workers and communities involved.
Danish shipping behemoth A.P. Moller-Maersk shocked the industry with a major change of course. After vowing to avoid liquefied natural gas (LNG) and focus solely on green methanol, Maersk announced plans to add up to 60 new vessels — many powered by the very fuel they promised to shun. What gives?
Maersk CEO Vincent Clerc defended the decision, framing it as a "hedging approach" rather than an abandonment of green goals. The company still aims to slash carbon emissions by 25% by 2030 and hit net zero by 2040. However, with LNG only reducing emissions by about 25% compared to traditional fuels, Maersk's green credentials face scrutiny. Securing reliable supplies of truly clean fuels like green methanol is also easier said than done: it can cost twice as much as conventional options.
Maersk isn't alone in its struggle to balance environmental aspirations with economic realities. Clarksons Research estimates the shipping industry faces a $3 trillion bill to transition to new forms of power. At the same time, rivals like CMA CGM and Hapag-Lloyd have already embraced LNG as a stepping stone. Maersk's reversal suggests even the most committed players recognize the need for flexibility in an uncertain future where various fuels may coexist longer than anticipated.
Yellow Corp.'s bankruptcy is turning into a financial nightmare for unsecured creditors. As the company's advisers rack up over $50 million in fees, frustration is boiling over. The once-mighty trucking giant's fall from grace has left a trail of unpaid bills and mounting expenses with no clear end in sight.
Yellow's bankruptcy advisers are asking for a jaw-dropping $40 million for just 90 days of work. As if that wasn't enough, the committee representing unsecured creditors wants another $10.6 million on top. Needless to say, these astronomical figures have people fuming — especially those still waiting for their checks. Creditors argue that despite the hefty price tag, there's been little progress towards a viable plan to liquidate Yellow's remaining assets.
The clock is ticking, and patience is wearing thin. Yellow has already sold off 160 terminals, netting $2 billion to repay funded debt. However, with nearly 100 properties still on the books and thousands of unsold trucks and trailers, creditors fear their chances of recovery are slipping away. Some accuse Yellow of deliberately dragging its feet, chasing unlikely wins for shareholders while putting creditor payouts at risk. With $320 million left in cash and over $7 billion in unresolved claims, the pressure is on to find a solution before the well runs dry.
Container imports to the U.S. are gearing up for a potentially record-breaking month. What’s driving these unique dynamics and unfolding situations?
The possibility of a work stoppage is pushing import numbers skyward. With the contract between the International Longshoremen's Association and the United States Maritime Alliance set to expire on September 30, retailers aren't taking any chances. They're scrambling to get their holiday goods into the country well ahead of schedule, potentially leading to a "near-record surge" in August container traffic.
East Coast concerns are breathing new life into West Coast ports. Importers are redirecting their cargo westward as a precautionary measure, pushing the West Coast's share of tracked cargo above 50% for the first time in over three years. With this sudden influx reshaping the usual distribution patterns, it’s anyone’s guess what happens next.
The logistics world moves faster than cargo on a conveyor belt as the industry pivots, expands, and occasionally stumbles. But that doesn’t mean you need to get caught up in the drama. Agile, data-driven solutions that help with everything from small parcel audits to freight pay and audit are so important in these turbulent times. And that's exactly where Intelligent Audit comes into play:
Get started with Intelligent Audit, and learn how 25 years of supply chain innovation can transform your operations today.
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