What to Expect this Peak Season

Peak season is almost here. And after consecutive turbulent quarters, retailers and brands have reason to be both cautious and optimistic.?

The stock market rebounded following stronger-than-expected earnings. The S&P 500 is up 14.8% this year—a 23% gain from its October 2022 low—meeting some definitions of a new bull market.?

Also adding to the rosier-than-expected outlook, the International Longshore and Warehouse Union and the Pacific Maritime Association announced a tentative agreement. The contract covers 22,000 workers at 29 ports from San Diego to Seattle, some of the world’s busiest. The agreement comes nearly a year after disputes disrupted import flows.?

“As we enter the all-important peak shipping season for holiday merchandise, retailers need a seamless flow of containers through the ports and to their distribution centers,” Matthew Shay, president of the National Retail Federation said.

Peak season challenges?

Despite these positive developments, retailers and brands face economic headwinds and potential supply chain bottlenecks.?

UPS and the Teamsters?

Over 340,000 UPS workers, represented by the Teamsters Union, threaten to strike. It would be the largest US single-employer stoppage. The strike could occur during back-to-school season and peak. It would have drastic ramifications for parcel networks as UPS handles 18.7M domestic packages daily.?

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