Consumer spending is on the rise, and it’s affecting supply chains.
In this Supply Chain Byte, Lisa Anderson highlights the key factors—like logistics—you need to consider in order to get prepared and keep your supply chain agile. Specifically, the peak season was off the charts. Black Friday online purchases were up 10% to the prior year, and the peak season is up 3% overall. As Logistics leaders worked to get ahead of the demand, it spurred container shipping to be up 18% through November with expectations that December will be up as well as companies address geopolitical risks, the potential tariffs and port strikes as well as planning for Chinese New Year. Air freight was also up substantially in the second half of December which is atypical. The bottom line is that the first half of the year is expected to be robust for logistics with a more normal second half of the year.
Consumers are “on fire,” and it’s reshaping demand planning, inventory positioning, and logistics strategy. In an unusual trend, the second half of December—normally a slower period—saw a significant uptick in air freight activity. Logistics teams are front-loading shipments to mitigate expected disruptions, including geopolitical instability, new tariffs, and potential port strikes on the East and Gulf Coasts.
The freight surge is also being driven by companies preparing for Chinese New Year, further intensifying pressure on the supply chain. While manufacturing has lagged behind, it is poised for a rebound in 2025.
The takeaway? Proactive planning and supply chain agility are no longer optional—they’re essential for staying ahead in a volatile environment.
If you are interested in reading more on this topic:
Supply Chain Resiliency a Must for Success
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LMA Consulting Group works with manufacturers and distributors on strategy and end-to-end supply chain transformation to maximize the customer experience and enable profitable, scalable, dramatic business growth.