Logistics and Supply Chain Updates: June 16-19, 2025
In a series of significant developments, the automotive and logistics sectors are experiencing a surge of investments and resolutions to labor disputes.
Amazon has made a substantial move by opening a new robotics fulfillment center in Charlton, Massachusetts. Spanning an impressive 2.8 million square feet, the center is set to boost production, not only for gas vehicles but also for electric ones. The investment in this state-of-the-art facility is part of Amazon's strategy to mitigate the impact of tariffs on imported automobiles and parts.
Meanwhile, the labor conflict at DHL Express Canada that began in early June has come to an end. After more than two weeks of strike action and a company lockout, DHL and the union Unifor reached a tentative contract agreement on June 25. The new four-year agreement, ratified by the union members on June 28 with 72% voting in favour, includes significant wage increases, pension enhancements, improved disability payments, new mental health benefits, increased severance, and updated policies on AI, robotics, and work-from-home arrangements.
The labor dispute led to DHL suspending all Canada operations starting June 20, causing major disruptions for around 50,000 customers, including notable shippers like Shein, Temu, Lululemon, and others. However, with the ratification of the new agreement, DHL is now set to resume normal operations promptly, bringing relief to customers and restoring the company's logistics flow across the country.
On the automotive front, General Motors (GM) is investing $4 billion in its U.S. assembly plants across Michigan, Kansas, and Tennessee. This investment will increase GM's capacity to build 2 million vehicles annually in the U.S. by 2027, supporting American jobs. Key projects include expanding production of popular models such as the Chevrolet Equinox and Blazer.
In international trade news, the US and the UK have signed a partial trade agreement, which includes a reduction in tariffs on UK and US exports. The agreement reduces tariffs on UK cars shipped to the US from 25% to 10%. However, the deal still imposes a 10% levy on most UK goods and does not address the removal of steel import charges. The UK government hopes this deal will protect British businesses from the impact of US tariffs.
In a positive step towards sustainable transportation, PepsiCo reports major savings on fuel costs after onboarding EV semi trucks at its Fresno facility. This transition to electric vehicles is expected to continue in various sectors, with companies like Amazon and General Motors investing heavily in electric vehicle production and infrastructure.
These developments underscore the ongoing evolution and growth in the automotive and logistics sectors, with a focus on boosting production, creating jobs, and transitioning to more sustainable practices.
- Amazon's new robotics fulfillment center in Charlton, Massachusetts is not only designed for gas vehicle production but also for electric ones, aiming to lessen the impact of tariffs on imported automobiles and parts.
- The labor conflict at DHL Express Canada, which led to over 50,000 customers experiencing disruptions, has ended with a tentative contract agreement that includes significant wage increases, pension enhancements, improved disability payments, new mental health benefits, increased severance, and updated policies on AI, robotics, and work-from-home arrangements.
- General Motors (GM) is investing $4 billion in its U.S. assembly plants, aiming to increase its annual vehicle production capacity to 2 million vehicles by 2027, and supporting American jobs.
- In a partial trade agreement between the US and UK, tariffs on UK cars sold in the US have been reduced from 25% to 10%, but the deal still imposes a 10% levy on most UK goods and does not address the removal of steel import charges, possibly impacting British businesses.
