Reasonably Interesting Week

September 30th, 2024

Happy Monday! We are a couple weeks before the unofficial start to Peak Season (kicking off with Prime Day 2 October 8th). A bit slow now but expect big news to come as the sales season kicks off. Here's what we have: 1. Fed Rate cut may help the holiday shopping season even if just slightly. 2. Benefits may be muted for SMBs though with East coast at risk of shutting down all imports due to a strike, impacting 40% of US imports. 3. Carriers continue to raise prices to offset soft demand and increased competition for volume it DHL announcing their GRI soon after FedEx. More a rumble than a growl but expect the roars to come near end of October. And now, the newsletter. . .

Interesting Retail

• A potential Fed rate cut could stimulate consumer spending during a potentially slow holiday season, providing relief for retailers experiencing sluggish sales growth in Q4. (LINK)
• TikTok Shop has faced growing pains in its first year in the U.S., with struggles in scaling seller support, high return rates, and content moderation, despite the platform’s strong user engagement. (LINK)
• Amazon has introduced a generative AI tool that allows advertisers to create video ads for holiday campaigns. This tool aims to streamline ad creation, targeting more personalized and effective marketing. (LINK)

Interesting Logistics

• A potential strike by dockworkers on the East and Gulf Coasts could severely disrupt U.S. cargo operations, leading shippers to seek alternative ports and routes to mitigate potential delays. (LINK)
• A surge in imports indicates retailers' optimism for a strong Q4 in 2024, despite economic uncertainties. The import increase suggests preparations for high consumer demand during the holiday season. (LINK)
• FedEx Freight is slashing capital expenditures in anticipation of a potential spinoff, focusing on maximizing profitability and preparing for operational independence. (LINK)
• Amazon is broadening its parcel delivery services for sellers, aiming to capitalize on its logistics network by offering third-party delivery options for the holiday season. (LINK)
• DHL Express announced a GRI of 5.9% matching FedEx, effective January 1, 2024, due to inflation and operational cost hikes. The increase will apply globally to all services, with country-specific variations. (LINK)

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