In the first quarter of 2025, the freight market shows initial signs of stability, but the underlying signals of economic recession and market pressures cannot be ignored. In the face of new challenges, freight companies must keenly capture market signals and proactively adjust their strategies to cope with future uncertainties.
South Korea has established a $1.2 billion shipping fund to support the recovery of its shipping companies, emphasizing the need to control debt ratios. The relevant legislation must be approved by the National Assembly.
Amazon's review mechanism has recently undergone significant adjustments, with weighting rules favoring recent, detailed reviews from buyers with long account histories. This has a profound impact on seller operational strategies. Sellers need to prioritize product quality and customer service, adapt to platform rules, and adjust their operational strategies to meet the new challenges. Understanding and responding to these changes is crucial for maintaining a positive presence and effective sales performance on Amazon.
Amazon is adjusting its logistics strategy by closing or delaying the opening of 70 fulfillment centers to address slowing e-commerce activity post-pandemic and rising costs. This move aims to optimize its distribution network, improve profitability, and adapt to changing consumer behavior. Despite these adjustments, Amazon continues to invest in new logistics facilities and is committed to developing a smart, flexible supply chain to meet future competition. The company is focusing on streamlining operations and enhancing efficiency in its logistics network.
Shopee announced the closure of its Polish site, exiting the European market due to macroeconomic uncertainties. Previously, Shopee had closed sites in France and Spain and implemented layoffs to optimize operational efficiency. The company is shifting its strategic focus to Asia and South America, concentrating on core markets to address global economic challenges. Shopee's strategic adjustments offer insights for other cross-border e-commerce platforms. This refocus allows Shopee to better allocate resources and navigate the current economic climate by prioritizing regions with higher growth potential.
GXO Logistics reported record revenue for the third quarter, up 8% year-over-year, with a 42% increase in net profit. New CEO Kelleher emphasized that the future strategic focus will be on accelerating growth and expanding profit margins, focusing on high-growth areas, strengthening technological innovation, and adopting a prudent M&A strategy. The company will continue to focus on opportunities in e-commerce, supply chain complexity, and emerging markets, while addressing the challenges of market competition and technological change.
Amazon has adjusted its review weighting again, impacting buyer browsing experience and product conversion rates. The review display logic differs between mobile (logged-in vs. logged-out) and PC (logged-in vs. logged-out) states. Sellers need to pay attention to these rule changes, improve product quality, encourage buyers to leave reviews, and understand the appeal process. Monitoring these changes is crucial for maintaining product visibility and positive customer perception on Amazon.
Amazon Canada's YYZ9 warehouse is temporarily closed for renovations and is expected to reopen in Q4. Sellers need to adjust their shipping strategies. Amazon will arrange for the transfer of any shipments already en route to YYZ9. This closure necessitates proactive planning to mitigate potential disruptions to inventory and order fulfillment. Sellers should consider alternative fulfillment centers or adjust shipment schedules to ensure continued service during this period.
Facing sluggish demand, freight industry giants are hoping for a recovery in 2026 and adopting 'wintering' strategies such as cost control and operational optimization. However, challenges such as supply-demand imbalances and overcapacity persist. Whether the industry can overcome these difficulties ultimately depends on market equilibrium and the efforts of the companies themselves.
Brazil is adjusting its coffee industry tariffs to address the EU Deforestation Regulation (EUDR) and promote industry upgrading. This involves lowering import tariffs on compliance-related equipment, increasing export tax rebates for high-value-added products, and restricting the export of low-quality coffee beans. Brazil aims to strengthen its position in the EU market, deepen trade with China, and achieve sustainable development and high-value transformation of its coffee industry. The adjustments are designed to ensure EUDR compliance while simultaneously boosting the competitiveness and profitability of the Brazilian coffee sector.
