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The CEO of Pandion announced the immediate closure of Pandion due to unsuccessful funding and acquisition attempts, despite extensive efforts by the leadership team. Employees' final day is Wednesday, January 15, with no severance pay due to financial constraints. The company will dispatch remaining packages and cease operations. The CEO acknowledges the team's contributions, takes responsibility for the situation, and offers personal support for their transitions. Highlighting market challenges and funding shifts, he expresses pride in their accomplishments. The People team will provide next steps to employees, and the CEO transitions to a coaching role to assist with career moves.
2. With Port Strike Averted, Dockworkers Draw New Curbs on Automation
A tentative six-year labor agreement between U.S. East and Gulf Coast dockworkers and port employers includes a 62% wage increase and limits on automation. The deal prohibits full automation, restricts AI replacing jobs, and requires hiring more workers for semi-autonomous crane operations. Spanning workers from Maine to Texas, the agreement reflects bipartisan support for higher wages and job protections. Dockworkers will vote on the proposal in coming weeks. It aims to balance job security with technological advancements, highlighting ongoing industry debates over automation's role while ensuring clear guidelines for integrating new technologies in ports.
3. UPS SurePost volume shifts away from US Postal Service, Teamsters say
UPS has shifted its SurePost service, previously relying on the U.S. Postal Service (USPS) for final-mile deliveries, to exclusively use UPS drivers. This change, highlighted by the Teamsters union, brings millions of packages back into UPS's network. The USPS noted that some businesses have renegotiated agreements, while others have not, reflecting operational and financial shifts. This transition may lead to increased fees for deliveries to remote areas, as UPS can no longer leverage USPS's extensive delivery network. Additionally, UPS plans to raise SurePost rates and surcharges effective January 13, 2025.
4. FedEx, UPS to continue discounting parcel rates amid increased competition
FedEx and UPS are intensifying their competition by offering significant discounts to attract parcel volumes, particularly from small businesses. This strategy has led to a 2.5% decrease in ground parcel costs in the third quarter, attributed to higher discounts and lighter package weights. The U.S. last-mile delivery market's fragmentation has provided shippers with more cost-effective and flexible options. However, the more profitable business-to-business (B2B) parcel segment is expected to remain subdued until there's an uptick in manufacturing demand.
5. 2025 brings wave of parcel carrier rate hikes
In early 2025, major parcel carriers are implementing rate increases. UPS and FedEx have both enacted a 5.9% average rate hike, with UPS's increase effective December 23, 2024, and FedEx's on January 6, 2025. The U.S. Postal Service plans to raise rates on January 19, 2025. Additionally, carriers like OnTrac and GLS US have announced similar increases. Despite these adjustments, the competitive market allows shippers to negotiate discounts to mitigate costs. However, shippers should remain vigilant about changes in surcharges, particularly those affecting bulky packages, fuel costs, and residential deliveries, as these can significantly impact overall shipping expenses.
6. FedEx targets growth in 4 customer segments
FedEx is focusing on growth in four key areas: healthcare and automotive B2B, U.S. e-commerce, global air freight, and Europe. To support this strategy, the company is implementing operational changes through its Network 2.0 and DRIVE programs, as well as the Tricolor air freight initiative. These efforts aim to enhance efficiency and capture market share in these high-value segments. Despite a 1% revenue drop and 18% net income decline in fiscal Q2, FedEx sees potential in these sectors to drive future growth. In Europe, the company seeks to expand its share of the approximately $130 billion parcel market. In the U.S., e-commerce remains a significant driver of parcel volume growth, with FedEx leveraging its speed, coverage, and picture proof of delivery capabilities to maintain a competitive edge. In healthcare logistics, FedEx plans to utilize its cold chain capabilities and FedEx Surround platform for real-time shipping visibility, targeting more profitable shipments in this sector.
7. UPS broadens network with double health care acquisition
UPS has acquired Frigo-Trans and its sister company BPL, both leaders in European healthcare logistics, to enhance its temperature-controlled and time-critical logistics solutions. This move is part of UPS Healthcare's strategy to double its revenue from $10 billion in 2023 to $20 billion by 2026, focusing on integrated cold and frozen supply chains to meet the growing demands of the pharmaceutical industry. The acquisitions expand UPS's capabilities in temperature-controlled warehousing and pan-European cold chain transportation, aiming to become the leading provider of complex healthcare logistics globally.
8. DHL Buys Into the Growing Retail Returns Business
DHL Supply Chain has acquired Inmar Supply Chain Solutions, a division of Inmar Intelligence, to expand its capabilities in managing retail returns. This acquisition adds 14 U.S. warehouses dedicated to handling returns to DHL's network, enhancing its ability to process the increasing volume of merchandise that consumers send back. The move reflects DHL's strategy to strengthen its position in the growing retail returns sector, providing comprehensive solutions for retailers grappling with higher return rates.
9. USPS’ transportation consolidation efforts have hurt service: OIG
The U.S. Postal Service's (USPS) Local Transportation Optimization (LTO) initiative, aimed at consolidating transportation operations to reduce costs, has led to service declines, particularly affecting rural customers. Implemented in 15 regions, LTO reduced mail pickup and drop-off frequencies for post offices over 50 miles from processing centers. The USPS Office of Inspector General reported that First-Class Mail on-time performance declined in all analyzed regions post-implementation, with rural areas experiencing more pronounced delays. Despite intentions to cut expenses, transportation costs increased by over $7.1 million in these regions, raising concerns about the initiative's effectiveness.
10. Trump’s Panama Canal Threat Stirs a Nationalist Outcry: ‘Yankees Go Home!’
President-elect Donald Trump's recent statements advocating for the U.S. to reclaim control of the Panama Canal have ignited nationalist sentiments in Panama. During a ceremony commemorating the 1964 riots over American control of the canal, demonstrators burned an effigy of Trump, expressing their opposition. Panama's President José Raúl Mulino has firmly rejected Trump's suggestions, emphasizing the canal's sovereignty and its significance to national pride. The Panama Canal, a vital conduit for global trade, was under U.S. administration until its transfer to Panama in 1999, following the Torrijos–Carter Treaties.
11. Supply chain management trends to watch in 2025
In 2025, supply chain management will focus on diversification, automation, and AI integration. Retailers and manufacturers aim to reduce reliance on single-source suppliers, especially in China, due to geopolitical tensions and anticipated tariff increases under President-elect Donald Trump. This shift has led to increased exports from countries like Vietnam, Mexico, and India. Automation in warehouses is set to enhance inventory optimization and safety, though fully automated "dark warehouses" remain distant. Additionally, AI adoption is expected to improve visibility and forecasting, aiding companies in navigating disruptions and enhancing customer experiences.
12. US truckload spot rates rising, but shippers keeping lid on contract rates
In late 2024, U.S. truckload spot rates exceeded seasonal expectations due to reduced capacity and holiday demand. However, this increase hasn't significantly impacted contract rates, which remain relatively flat because of ongoing weak freight demand. Analysts note that shippers continue to maintain pricing power, limiting substantial shifts in contract pricing. The new rate differential, indicating the change between new and existing dry-van contract rates, was –0.7% as of January 6, showing minimal movement in recent months. This trend suggests that, despite short-term spot rate fluctuations, sustained demand growth is necessary to influence long-term contract rate adjustments.
13. More than 4,500 freight-related layoffs slated for firms nationwide
Since September 2024, U.S. freight companies have announced 9,746 layoffs, with 4,511 occurring recently in multiple states. Big Lots filed for bankruptcy, planning to close five distribution centers and cut 2,230 jobs. DMSI will lay off 1,683 employees in California due to a client transition. Logistics Insight Corp., a Universal Logistics Holdings subsidiary, is closing a Detroit warehouse, resulting in 352 layoffs. FedEx is reducing its workforce with 88 layoffs in Pennsylvania and Maryland. These layoffs highlight ongoing challenges in the freight and logistics industry, driven by financial struggles, client transitions, and contract changes.
14. CPB looks to close security gaps on rail exports to Canada, Mexico
U.S. Customs and Border Protection (CBP) has proposed a rule to enhance security for rail exports to Canada and Mexico. The rule mandates electronic submission of cargo manifest data: an initial filing 24 hours before departure and a final update at least two hours prior. This aims to address current data gaps that pose national security risks by allowing CBP to identify and hold high-risk shipments, such as those containing narcotics or weapons. Non-compliance could result in penalties ranging from $5,000 to $100,000 per violation. CBP anticipates minimal additional staffing costs for rail carriers to meet these requirements.
15. Holiday e-commerce hits a record as shoppers choose phones over stores
During the 2024 holiday season (Nov. 1 to Dec. 31), U.S. online retail sales reached a record $241.4 billion, marking an 8.7% increase from the previous year. Notably, 54.5% of these online transactions were conducted via smartphones, up from 51.1% in 2023, indicating a growing consumer preference for mobile shopping. Significant sales spikes occurred during key shopping days: Thanksgiving Day sales rose nearly 9% to $6.1 billion, Black Friday sales increased over 10% to $10.8 billion, and Cyber Monday remained the largest online shopping day with $13.3 billion in sales, a 7.3% rise. Discounts played a crucial role in driving purchases, especially for higher-priced items like electronics and appliances. Additionally, the use of buy now, pay later (BNPL) services grew by nearly 10%, totaling $18.2 billion in online spending, with Cyber Monday alone accounting for $991.2 million. These trends highlight the increasing importance of mobile commerce and flexible payment options in the evolving retail landscape.
16. New York trucking group says Manhattan tolls burden industry
The Trucking Association of New York (TANY) opposes New York City’s congestion pricing program, which imposes tolls on vehicles entering Manhattan’s congestion zone, arguing it unfairly burdens the trucking industry. Trucks, responsible for 90% of New York State goods transportation, face fees up to $36 per trip, adding significant costs. Despite a federal lawsuit filed by TANY to halt the program, it launched in January 2025. Advocates highlight its potential to reduce traffic and fund public transit, while critics warn of economic repercussions, including increased costs passed to consumers. This marks the U.S.’s first urban congestion pricing initiative.
17. Why Food Companies Want Consumers to Buy More of Everything
Food companies are shifting focus from raising prices to increasing sales volumes to boost profits amid consumer inflation concerns. Executives from firms like Mama's Creations, Conagra Brands, and J.M. Smucker are introducing new products, enhancing marketing, and acquiring brands to attract budget-conscious consumers. Retailers such as Costco are selectively adjusting prices to drive higher sales volumes. This strategy aims for stability and long-term profit growth without excessive discounting, as companies balance price and volume to sustain growth in a competitive market.
