Ecom Logistics 2024: Year in Review
The 11 biggest things that happened in 2024
So many things happened in 2024! This is my list of what I believe are the biggest things that happened in 2024 which had the most significant impact on the industry and might have ramifications in 2025. In reverse order from least to most important...
11. Alibaba scraps Cainiao IPO
What would have been the biggest eCommerce logistics IPO of the year—and in Hong Kong—was set to be the global eCommerce logistics powerhouse Cainiao. However, Alibaba decided to scrap the IPO and instead chose to keep it private, investing a further $3.75 billion into the business.
10. Lineage $4.4 billion IPO
Lineage reminded the world that while D2C eCommerce logistics was popular and cool, the real money is made in specialized logistics like cold-chain and pharma logistics, quietly bringing home the bacon with a $4.4 billion IPO on the Nasdaq.
9. FedEx combines it’s Ground and Express units
While it was announced in 2023, the work of combining FedEx’s Ground and Express units really kicked into high gear in 2024. It’s on this list because of the far-reaching impact this will have in making FedEx leaner and more competitive—positioning it for strength in 2025.
8. US Port strikes cripple businesses
Strikes on both the West and East coasts of the US showed the world just how reliant it is on port operators to keep goods flowing in and out. As the US remains the world’s economic engine, its ports’ technology, efficiency, and automation are beginning to lag in competitiveness. This is an area to watch. Will this become a regular occurrence in 2025?
7. DSV acquires Schenker for €14.3b
DSV is seemingly unstoppable—acquiring companies that you would have thought were unattainable, like DB Schenker. Financially, it makes so much sense for DSV, as DB Schenker is so poorly run that, if DSV can improve DB Schenker’s efficiencies to resemble its own, the transaction will pay for itself quickly. The size and scale of DSV will have far-reaching effects and impacts well into 2025 and beyond...
6. Red Sea crises become a critical focal point
Houthi rebels had been targeting cargo ships for piracy since 2023, but it became a major focal point in 2024 as shipments grew increasingly long and costly. To this day, there is no solution in place, and importers and shippers may need to live with the extra costs, risks, or delays indefinitely.
5. Canada Post strikes cancels Christmas for Canadians
The most recent on this list, and still ongoing, is the Canada Post union strike. The strike began right before Black Friday and would likely still be going on today if the Canadian government hadn’t ordered it to end a few days before Christmas. The problem was that Canada Post is the biggest last-mile delivery company in Canada, and most merchants didn’t have alternatives ready and available—effectively canceling Christmas for almost all Canadians. The question now remains whether shippers will return to Canada Post or if private carriers will permanently retain their newfound business.
4. Section 321 changes lights LinkedIn on fire
LinkedIn was lit ablaze with posts and comments related to Section 321 this year as politicians zoomed in on the large volumes of imports coming from China, particularly from Shein and Temu, and sought to address perceived unfairness or abuse of the Section 321 $800 de minimis for personal imports from overseas. With the latest legislation coming from the Biden administration, it remains to be seen whether a potential future Trump administration would continue to push for changes to the de minimis. One thing's for certain—everyone on LinkedIn has a comment!
3. USPS ends DDU discounts and kills resellers
First of all, DDU does not stand for Delivered Duties Unpaid; it stands for Destination Delivery Unit. In the middle of 2024, USPS officially ended the ability for customers to zone skip and inject shipments into regional hubs, effectively dismantling an entire industry of providers, including industry titan Pitney Bowes’s Global eCommerce unit. Several months later, it announced that it would not renew any of the wholesale and reseller rates that underpinned the entire business model of many popular USPS resellers. Due to the sheer size and volume of USPS shipments, as well as the significant impact this move had on numerous companies, this ranks as #3 on our list.
2. Shein and Temu become the crowned kings of eCom logistics
2024 was the year that every logistics provider in the world was talking about Shein and Temu. Whether in North America, Europe, or Asia—at every logistics conference, Shein and Temu were the talk of the town. Prior to 2024, both companies relied heavily on service providers that managed their full origin-to-destination logistics. However, in 2024, both companies began segmenting their providers, dealing directly with line-haul providers, customs brokers, last-mile warehousing, and last-mile delivery services. With close to a combined $100B in revenues in 2024, landing just one of these clients could take your logistics company public—and it did for some. Regardless of what happens with Section 321 in the US, these two companies will continue to dominate in 2025.
1. Pitney Bowes Global eCommerce empire implodes
The eCommerce logistics world was left in shock when Pitney Bowes announced that its Global eCommerce (GEC) business would be sent into bankruptcy administration. The 102-year-old company was a mainstay and a bedrock in American and global eCommerce logistics. The sheer number of parcels it handled at its peak left a huge gap in the market, including many frenzied customers scrambling for immediate alternatives. Thousands of employees were displaced, and those professionals will inevitably end up at other organizations or starting companies of their own. It’s the scale of professionals dispersed into the market and the lessons learned from its downfall that will leave a lasting impact for many years to come. That’s why this is my #1 biggest event of 2024.