The logistics industry is in a constant state of flux. Keeping up with the latest news can be overwhelming. So, we’ve compiled a list of the top stories within the logistics industry for this month to help you stay in the loop.
Inflation, rising gas prices, and labor woes have put a pinch on some major shipping carriers. This month FedEx announced its largest rate increase in the company’s history and USPS's Postmaster General, Louis DeJoy, announced a consolidation of around 21% of its delivery units into large-scale centers. Both companies indicated the moves were in response to increased operations and transportation costs due to inflation.
Retailers across the country have been adjusting to the boom in ecommerce during the last several years. American Eagle Outfitters Inc. announced a new approach in August with its establishment of a logistics arm via the Quiet Logistics platform. In September, Quiet Logistics handled a third of the retailer’s direct orders, delivering a majority within three days of checkout. They’re looking to expand their logistics services both internally and to provide logistics services to other retailers as an additional source of revenue.
One of the top ecommerce retailers in the Chinese market, Pinduoduo, stepped into the US market with their launch of a site called Temu. This is the company’s largest push to reach overseas markets and they are working to keep up with other Chinese retailers, Alibaba and JD.com. Additionally, with a platform like Amazon, Pinduoduo will be competing for market share with the ecommerce giant.
While this story is not totally logistics-related, it is fascinating on the corporate social responsibility front! Patagonia’s founder, Yvon Chouinard, announced that he will be giving 98% of the company’s stock to the non-profit Holdfast Collective, charged with combating the climate crisis. The other 2%, all the voting stock, will be placed in the Patagonia Purpose Trust. In a public letter, Chouinard explained “Earth is now our only shareholder.”
Keeping up with the ever-changing logistics field can feel daunting, but we’re hoping this list of the top stories for September helps you stay on top of it! Let us know what you think of these stories or anything else in the logistics world. We look forward to hearing from you!