MARKET BRIEF | December 2024
Canada Post Workers Return to Work
Canada Post workers have ended their strike and are returning to work following a resolution reached between the Canadian Union of Postal Workers (CUPW) and Canada Post. The strike, which caused disruptions to mail and parcel delivery across the country, was driven by demands for improved wages, better job security, and safer working conditions. After lengthy negotiations, both sides agreed to terms that address key concerns, including commitments to improve workplace safety and adjust pay scales. Government intervention and mounting pressure from businesses and the public helped push the resolution forward as holiday mail volumes increased. The return to work ensures that delivery services will resume promptly, helping clear the backlog caused by the strike. While the agreement signals progress, the CUPW has emphasized that further improvements are still needed.
ILA Strike Updates
The International Longshoremen’s Association (ILA) refutes claims of U.S. port inefficiency … President-elect Donald Trump voiced opposition to port automation and met with union leaders … As the January 15 deadline gets even closer, read more on Aeronet’s ongoing Speaking Logistics blog coverage.
Updates on Trump Tariffs
After much industry-wide speculation, President-elect Donald Trump confirmed that he plans to implement significant tariffs upon taking office. Among those affected are Mexico, Canada, BRICS countries, and China – who will also see additional tariffs from the Biden administration … Read more on Aeronet’s ongoing Speaking Logistics blog coverage.
UPS & FedEx Raising Fees on Bulky Packages
FedEx and UPS are set to increase rates and surcharges, particularly impacting businesses shipping bulky items like furniture, home goods, and sports equipment. These large and heavy shipments are less efficient for carriers to handle compared to smaller parcels, and there are fewer alternative carriers willing to manage them. As a result, FedEx and UPS have focused on aggressively raising prices for oversized deliveries in recent years. Surcharges for large packages have nearly doubled over the past five years, and this trend will continue with upcoming rate hikes. UPS’ new pricing takes effect on December 23, while FedEx’s changes begin January 6, 2025. The increases aim to support network reliability and future growth, but they pose significant cost challenges for businesses reliant on bulky item deliveries, as competition remains scarce in this shipping segment.
Black Friday & Cyber Monday Spending
This year’s Black Friday and Cyber Monday shopping periods set new records for online retail spending: Black Friday spending reached $10.8 billion, a 10% year-over-year increase, with 57% of purchases made on mobile devices, totaling $7.6 billion. Cyber Monday hit $13.3 billion, up 7.3% from 2023, with peak spending at $15.8 million per minute between 8:00 PM and 10:00 PM. Significant discounts included electronics (30.1%), toys (26.1%), and apparel (23.2%). Over the entire Cyber Week (Thanksgiving through Cyber Monday), consumers spent $41.1 billion, reflecting an 8.2% increase. Adobe projects total holiday season online spending (Nov. 1 – Dec. 31) to reach $240.8 billion, an 8.4% rise from last year.
