CrossDock's Weekly Dispatch

In partnership with

Welcome to CrossDock’s Weekly Dispatch,

After popular demand, we're thrilled to announce the return of our weekly news curation — your go-to source for the latest updates in logistics, supply chain, and e-commerce. Think of this as your TL;DR version of the industry's most important news. However, if you're the type who loves a deep dive into the details, we’ve got you covered with in-depth analyses, too. You can continue reading CrossDock’s weekly deep-dive newsletters, published on Thursdays. Let’s get started with this week’s news that made it to our list.

Stay up-to-date with AI

The Rundown is the most trusted AI newsletter in the world, with 800,000+ readers and exclusive interviews with AI leaders like Mark Zuckerberg.

Their expert research team spends all day learning what’s new in AI and talking with industry experts, then distills the most important developments into one free email every morning.

Plus, complete the quiz after signing up and they’ll recommend the best AI tools, guides, and courses – tailored to your needs.

Sign up to start learning.

In this newsletter:

• US longshoremen and USMX reached a tentative agreement

• Nippon and US Steel sue Biden administration

• Commerce Department plans to secure drone supply chain

• US imposes new AI chips export restrictions

• TikTok’s legal battle in the US Supreme Court

• DHL acquires Inmar supply chain solutions

• JC Penny and Sparc merge to create a new entity

• Meta to test eBay listings on its platform

• Macy’s and Kohl’s announce store closures

• Amazon to sell its advertisement tech to other retailers

• Americans spent a whopping $241.4 billion this holiday season
  

Watch 👇🏻: Nearly half of the U.S. population — about 170 million Americans — use TikTok, spending an average of 58.4 minutes daily enjoying its viral trends and funny videos. Despite its popularity, the U.S. government remains firm on its plans to ban the app. But why? Find the answers in the video. 

⛓️‍💥 Supply Chain

U.S. longshoremen reach tentative contract agreement

The International Longshoremen’s Association (ILA) and the US Maritime Alliance reached a tentative six-year contract agreement on January 8, narrowly avoiding a potential strike ahead of the 15 January deadline. The deal, which focuses on safeguarding union jobs and modernizing ports, will now proceed to a ratification process by union members.

While details remain undisclosed, the agreement reportedly allows for port modernization with technology, prohibits full automation, and ensures new hiring as modernization progresses. The compromise balances port efficiency needs with job security for the 45,000 longshoremen, who had previously staged a three-day strike in October 2024.

Back story: The October 2024 strike was the first major strike in nearly 50 years for the ILA, where ILA called for a substantial $5-an-hour pay raise each year of a six-year contract, amounting to a 77% wage increase over the contract’s duration.

Kudos from POTUS: President Joe Biden lauded the deal, calling it a testament to effective labor-management collaboration. A strike would have impacted East and Gulf Coast ports, posing risks to the economy. With this agreement, ports aim to remain competitive globally while preserving critical American jobs.

For more: Check out our detailed story on the US longshoremen - we track the journey of the longshoremen and how they became one of the most powerful unions in the US

Nippon and US Steel file lawsuit against Biden administration

Nippon Steel and U.S. Steel have filed federal lawsuits challenging President Joe Biden’s decision to block their proposed $15 billion merger. They claim the move was politically motivated and lacked legal justification.

Biden cited national security concerns and blocked the merger, asserting that a domestically owned and operated steel industry is vital to protecting America’s infrastructure and supply chains.

The lawsuits, filed in Washington, D.C., and Pennsylvania, also accuse rival steelmaker Cleveland-Cliffs and United Steelworkers union leader David McCall of orchestrating efforts to sabotage the deal.

Nippon Steel had pledged to invest $2.7 billion in modernizing U.S. Steel’s aging facilities in Indiana and Pennsylvania, positioning the merger as a way to compete against China’s dominance in the global steel industry. Without the merger, U.S. Steel warns it may shift production to cheaper, non-union electric arc furnaces and move its headquarters out of Pittsburgh.

Common ground: Both President-elect Donald Trump and Vice President-elect J.D. Vance have also voiced opposition to the deal. Trump, in a recent statement, emphasized his intention to use tariffs and tax incentives to restore U.S. Steel’s former glory, calling for a revitalization of the iconic company to lead America’s industrial resurgence.

U.S. Commerce Department moves to secure drone supply chains

The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) is taking steps to secure the supply chain for commercial unmanned aircraft systems (UAS). The agency cites significant risks from foreign involvement, particularly from China and Russia. On January 2, BIS issued an advance notice of proposed rulemaking (ANPRM), inviting public input on potential regulations to address vulnerabilities in the drone supply chain.

“Securing the unmanned aircraft systems technology supply chain is critical to safeguarding our national security,” said Commerce Secretary Gina Raimondo, emphasizing the importance of protecting U.S. systems from potential foreign threats.

The notice highlights how adversaries could exploit UAS information and communications technology services (ICTS) to manipulate devices or access sensitive data.

Public opinion: BIS is requesting feedback on key issues, including UAS component definitions, threat assessments, and economic impacts. Public comments will guide measures to mitigate risks and safeguard critical supply chains. The comment period ends on March 4, 2025

U.S. imposes AI chip export restrictions to counter China

The United States has recently implemented stringent export controls on artificial intelligence (AI) chips, aiming to curb the distribution of advanced processors to nations beyond a select group of close allies. These measures are designed to prevent countries like China from acquiring technologies that could enhance their military capabilities.

According to the White House press release, the rule allows certain countries to use advanced semiconductors for basic applications but blocks access to chips used for training advanced AI systems.

Who are these countries? In addition to China, countries like Russia, Iran, and North Korea are also prohibited from purchasing the most advanced U.S. chips and will remain under the new restrictions.

Nvidia, a leading AI chip manufacturer, can be significantly impacted by these restrictions. The company derives approximately 56% of its revenue from international customers, with China accounting for nearly 17% of its sales. The new regulations could substantially limit Nvidia's market reach and impede its anticipated revenue growth. Nvidia has criticized the policy, suggesting it could stifle innovation and undermine U.S. economic leadership.

In contrast, major cloud service providers such as Microsoft, Google, and Amazon may benefit from the new rules. They can apply for exemptions to establish data centers in countries affected by the restrictions, potentially expanding their market share.

The Semiconductor Industry Association has also expressed concerns, indicating that the move might force U.S. firms to cede market share to international competitors.

These regulations are set to take effect in 120 days, providing the incoming Trump administration an opportunity to review and possibly modify aspects of the policy. While both the current and incoming administrations share concerns about China's competitive threat, there is speculation that President-elect Donald Trump may be more inclined to negotiate deals with individual companies and countries

📦 Ecommerce Talks

Supreme Court likely to uphold the TikTok ban in US

The Supreme Court appears ready to uphold a law that could ban TikTok in the United States unless its China-based parent company, ByteDance, sells the platform ahead of the 19 January deadline. The Court’s nine justices heard arguments from TikTok’s legal team, who claim the ban violates free speech protections for the platform’s more than 170 million U.S. users.

The U.S. government contends that TikTok poses a national security risk, arguing that if left in ByteDance's hands, it could be used by China for spying and political manipulation. The legislation passed with bipartisan support mandates the sale of TikTok or its cessation of operations in the U.S. ByteDance has refused to comply, stating that it will not sell the short-form video platform, which has gained immense popularity among young audiences for its viral content.

What happens after the ban: The law does not directly prohibit the use of TikTok but would prevent tech giants like Apple and Google from offering the app or updates on their platforms—a move that would gradually make the app obsolete.

TikTok’s arguments: TikTok has consistently denied any ties to the Chinese Communist Party and argued that the ban violates First Amendment rights, claiming it infringes on the free speech of its users. The company insists that all American data is securely stored on Oracle’s servers — no foreign entity can access it — within the U.S., a key part of its Project Texas initiative.

The Supreme Court's decision is expected within days as the deadline looms. Meanwhile, President-elect Donald Trump, who will soon return to the White House, has reversed his earlier stance and now opposes the ban.

💰 Merger and Acquisitions

DHL to become reverse logistics “king in the North”

DHL began this year with a big buy: It acquired Inmar Supply Chain Solutions, a company specializing in returns management, for an undisclosed amount. This acquisition makes DHL the largest provider of reverse logistics solutions in North America—a big win in an industry growing faster than ever.

The acquisition adds 14 return centers and approximately 800 associates to the DHL Supply Chain network, further strengthening the company's presence in North America. This expansion adds to DHL’s impressive footprint of over 520 warehouses and a team of 52,000 associates across the region.

The return issues: Returns aren’t just an e-commerce problem; they’re a massive market. According to National Retail Federation data, in 2024, Americans returned 16.9% of their purchases, valued at a staggering $890 billion. That’s more than double the return rate in 2019. Managing those returns effectively has become a critical part of doing business in the online shopping era—and DHL is ready to cash in.

Deja vu: Interestingly, this is not the first big buy in the return logistics space. United Parcel Service in 2023 acquired Happy Returns for $465 million. 

JC Penny merges with Sparc Group

JCPenney has joined forces with Sparc Group, the company behind brands like Aéropostale and Brooks Brothers, to create a new apparel company called Catalyst Brands.

This merger combines JCPenney’s stores and private brands with Sparc’s portfolio, which includes Eddie Bauer, Lucky Brand, and Nautica. Catalyst Brands will now have over 1,800 stores, 60,000 employees, and $1 billion in available funds.

The new company will be led by JCPenney CEO Marc Rosen, with its headquarters in Plano, Texas. Key leadership includes former Walmart executive Kevin Harper as COO and Marisa Thalberg, JCPenney’s former marketing officer, as chief customer and marketing officer.

In 2020, JCPenney was acquired by Simon Property and Brookfield for $800 million after JCPenney filed for bankruptcy that year.

Furthermore, Catalyst announced it has sold Reebok's U.S. operations and is considering future plans for Forever 21. Both brands are part of Authentic Brands and Simon Property’s portfolio. The merger does not affect Authentic Brands’ intellectual property, which Sparc continues to license.

🤝 Strategic Partnerships

Meta to test eBay listings on its marketplace

eBay and Meta recently announced a partnership that allows select eBay listings to appear on Facebook Marketplace, Meta’s popular platform for local item pickups.

The collaboration will first be tested in Germany, France, and the U.S., where buyers can browse eBay listings directly on the Marketplace. However, transactions will be completed on eBay’s platform. This partnership aims to increase eBay sellers' visibility while tapping into Facebook Marketplace’s three billion global users. Additionally, this is a significant partnership for eBay to stay relevant in the competitive e-commerce space.

Interestingly, this partnership's results were pretty quick. Just after the announcement, eBay’s shares surged 9%, reaching their highest level since November 2021.

Why is Meta doing this: On the other hand, for Meta, this partnership is also a response to regulatory pressure. In November, the European Commission fined Meta €797 million ($821 million) for anti-competitive practices tied to Marketplace.

It is worth noting that Facebook, in 2023, announced a similar partnership with Amazon that allowed users to browse and purchase products without leaving the app.

🛍️ Retail Affairs

Macy’s and Kohl’s announce store closure

The year has started on a challenging note for major retailers Kohl’s and Macy’s, with both announcing significant store closures in a bid to restructure and return to profitability.

Kohl’s plans to close dozens of "underperforming" stores across 27 states in the U.S. by April and shutter its San Bernardino E-commerce Fulfillment Center in May as its lease expires. The company cited advancements in technology that allow orders to be fulfilled from store locations as the reason for the fulfillment center’s closure.

Kohl’s, which operates more than 1,150 stores nationwide, has struggled with declining sales. Net sales for Q3 2024 fell nearly 9% to $3.5 billion, and net income dropped to $22 million from $59 million in 2023. Its shares have plummeted more than 50% over the past year.

Macy’s is also shutting down 66 "underproductive" stores across 22 states as part of its "Bold New Chapter" strategy, which aims to close 150 stores over three years. The retailer is pivoting toward luxury sales in a bid to achieve sustainable growth.

The trend continues: The U.S. retail sector witnessed over 7,300 store closures in 2024, highlighting the ongoing struggles of traditional retailers to adapt to changing consumer preferences and economic pressures.

Amazon to sell its ad tech to retail businesses

Amazon recently announced that it is ready to sell its advertising technology to other retailers. This new service enables third-party online retailers to leverage Amazon’s powerful ad tech, integrating “contextually relevant ads” into their product, search, and browsing pages.

In 2023, Amazon’s advertising revenue soared to $46.9 billion, a 24% increase from 2022. According to eMarketer, Amazon already controls nearly 75% of retail media spending, making its dominance in this sector unmatched. The Retail Ad Service is expected to deepen this foothold, echoing the strategy that transformed Amazon Web Services (AWS) from an internal tool into a multibillion-dollar enterprise.

By embedding its ad tech in external retail ecosystems, Amazon extends its influence far beyond its own marketplace. While the move diversifies revenue streams and strengthens Amazon’s position in retail media, it also raises regulatory concerns. The Federal Trade Commission (FTC) may scrutinize the initiative for its potential to increase Amazon’s access to consumer data, fueling ongoing antitrust discussions.

Sneak attack: Experts also believe this could be a “Trojan horse” strategy, allowing Amazon to weave itself further into competitors’ ecosystems, gain valuable insights, and strengthen its ad dominance.

Adobe released 2024 holiday shopping data

Adobe released its comprehensive analysis of the 2024 holiday shopping season, covering the period from November 1 to December 31, 2024.

The data, drawn from over 1 trillion visits to U.S. retail websites and 100 million SKUs across 18 product categories, highlights record-breaking e-commerce performance driven by mobile shopping, generative AI, and competitive discounts.

✅ $241.4 billion spent online, marking an 8.7% YoY increase

✅ Mobile shopping accounted for 54.5% of transactions, peaking at 65% on Christmas Day

✅ AI-powered shopping assistant traffic grew by 1,300% YoY, with Cyber Monday seeing a 1,950% increase

✅ Buy Now, Pay Later transactions totaled $18.2 billion, with 79.1% completed via smartphones.

This newsletter was written by Shyam Gowtham

Thank you for reading. We’ll see you at the next edition!