Capstone Logistics Market Insights: December 2024

Holiday Peak Shipping Fees Are Higher and Occurring Earlier Than Ever

By: Bloomberg

Holiday peak shipping surcharges, introduced in 2017, initially spanned just over a month. Today, the window has stretched significantly, driving up costs for shippers. UPS and FedEx have extended their surcharge timeframes in 2024, citing an increasingly elongated holiday shopping season. Retailers now push major promotions and sales events earlier in the year, meaning peak volumes no longer concentrate in December alone.

For logistics professionals, these extended surcharges present an operational and financial challenge. Shippers must now budget for higher peak fees spread across months, not weeks. This shift amplifies the importance of cost-effective carrier selection and tighter operational planning to protect margins during the holiday rush.

CAPSTONE TAKEAWAY

The expanding surcharge window underscores the need for flexibility and strategic partnerships in peak season logistics. Not all carriers apply surcharges equally, and some may not impose them at all.

By partnering with a logistics provider like Capstone, shippers can reduce holiday-related cost pressures without compromising delivery reliability. Capstone’s performance-driven model focuses on providing seamless last-mile fulfillment — without hidden fees. Our technology-enabled solutions, including real-time tracking and optimized delivery routes, ensure timely performance while keeping your operations agile and cost-efficient.

When the holiday shopping season stretches longer than ever, the right logistics partner can make all the difference. Capstone combines experience, transparency, and innovative solutions to help you navigate peak demands while protecting your bottom line.

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U.S. Manufacturers Stockpile Imports Ahead of Anticipated Tariffs

By: Wall Street Journal

In response to President-elect Donald Trump’s proposed tariffs — 25% on imports from Mexico and Canada, and up to 60% on Chinese goods — U.S. manufacturers are accelerating imports of essential components and raw materials. This preemptive strategy aims to mitigate potential cost increases and maintain competitive pricing. A recent survey indicates that North American manufacturing purchasing activity reached a 12-month peak in November.

Companies are prioritizing the procurement of critical items to avoid supply chain disruptions and price hikes. For instance, industrial goods importers have doubled orders of materials and tools from China to circumvent anticipated tariffs. Similarly, major retailers have increased import bookings since September, reflecting a broader trend of inventory buildup.

CAPSTONE TAKEAWAY

The evolving trade landscape underscores the necessity for manufacturers and retailers to enhance supply chain resilience. Proactive measures, such as diversifying supplier bases and optimizing inventory management, are essential to navigate potential disruptions. Companies should look for technology-enabled solutions that provide end-to-end visibility and flexibility, ensuring your operations adapt seamlessly to changing market conditions. A strong, flexible, and data-driven solution will allow you to streamline processes, optimize resources, and maintain a competitive edge, regardless of external challenges.

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warehouse workers checking tablets in warehouse aisle

Record-Breaking Black Friday Online Sales Highlight Shifting Shopper Behavior

By: Forbes

Shoppers spent a record-breaking $10.8 billion online this Black Friday — a 10% increase from last year — according to Adobe Analytics, which tracks retail transactions. While online spending surged, brick-and-mortar stores saw a different story. In-store traffic was down 8.2% compared to 2023, per data from Sensormatic Solutions. This sharp contrast underscores a significant shift in consumer habits: shoppers increasingly favor the convenience of online purchases over traditional in-store shopping.

For retailers, this means the pressure to deliver a seamless, omnichannel experience — whether online, in-store, or through hybrid models — has never been greater. A successful peak season requires precision, speed, and synchronization across warehouse operations, order fulfillment, shipping, and last-mile delivery.

CAPSTONE TAKEAWAY

As consumer preferences continue to evolve, retailers must align every piece of their supply chain to meet rising expectations for speed and accuracy. From warehouse management to order fulfillment, packing, and shipping, having access to trained, scalable, and flexible workforce ensures your operations run smoothly, even during peak demand.

In today’s competitive omnichannel retail environment, the ability to adapt quickly and execute flawlessly is critical. With Capstone Logistics as your partner, you can streamline processes, optimize resources, and deliver a seamless experience to your customers — no matter how, when, or where they shop.

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