I’m Jay Kent, managing director of SLB Performance, a consulting firm that helps companies reduce supply chain costs, implement BI tools, and improve in-stock and customer service. After 25 years of leading some of the most complex supply chains in the industry, I began advising companies in multiple industries and verticals.
It’s important to understand the market to mitigate costs and improve efficiencies. So, twice a month, I’ll share parcel news and thoughts. Be sure to hit the subscribe button to receive the latest newsletter in your LinkedIn notifications.
In addition, on those weeks that Parcel Notes does not go out, we send a market update and analysis email to subscribers. ***If you would like to be added, please DM me***.
Tariffs may finally end ‘free shipping’ as we know it as WSJ’s Liz Young and Paul Berger writes this week in their latest article – The Latest Casualty of the Tariff War: Free Shipping. Per the article, retailers are cutting back on free shipping to offset the steep costs of tariffs. Some online merchants are eliminating free shipping, while others are raising the amount customers must spend to qualify for free shipping as part of broader efforts to pass along higher costs to consumers.(Subscription may be required).
However, a number of surveys suggest that consumers take ‘free shipping’ into account when shopping online. According to a PYMNTS survey earlier this year, 66% of consumers surveyed take into account when selecting an online store.
Amazon
- Amazon is creating AI-based systems that would allow humanoid robots to deliver packagesto consumers’ doorsteps.
- Construction is underway for Amazon’s latest ‘last mile’ warehouse facility in North Platte, Nebraska. The almost 35,000 square foot facility is part of Amazon’s $4 billion investment to expand its rural delivery network with the plan to have more than 200 delivery stations up and running in rural communities across the country by the end of 2026.
- Amazon announced plans to expand further in Minensota with a new 41,000-square-foot delivery station in Grand Rapids.
- Amazon announced plans to build a new 1.6 million-square-foot facility in Hogansville Georgia. The sorting center, which will be Amazon’s third in Georgia, will employ more than 1,000 full- and part-time employees when it opens in 2027.
FedEx and UPS
- Canada Post-reliant shippers are shifting order volume to alternatives like FedEx, UPS, Purolator and DHL because of ongoing labor disruptions and protracted contract negotiations.
- UPS has rolled out a number of surcharge changes since May. The carrier has hiked its fuel fee calculations, added a new international levy and tweaked the list of ZIP codes in which delivery area surcharges apply, among other adjustments. Updates to how fees on bulky packages are calculated will take effect Aug. 17.
- FedEx rate increases including fuel go into effect following similar increases from UPS.
- FedEx will layoff 305 employees at its FedEx Supply Chain Logistics & Electronics facility in Fort Worth beginning July 6.
- UPS plans to close its hub where packages are sorted for delivery in Boardman, Ohio as the company consolidates its operations across the US.
That’s it for now. Stay tuned for the next newsletter June 25. Don’t forget to hit the subscribe button to ensure you receive it in your LinkedIn notices. In addition, if you like what you’re reading, sign up to receive additional insights and analysis via emails twice a month – DM me for more info.
Most important though, reach out if you’d like to learn how to lower or even possibly eliminate any parcel fees. 📦
-Jay