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***.
A big change in international cross-border e-commerce is about to happen sooner than later according to a Wall Street Journal article (subscription may be required) -The White House announced it would suspend the de minimis provision, which allows shipments worth $800 or less to enter the U.S. tariff-free, as of Aug. 29. This is much sooner than a July 2027 deadline mentioned in President Trump’s recent budget bill.
Amazon
- Amazon announced it will stop offering prep and item labeling services on Jan. 1, 2026, for shipments in the U.S. using the e-commerce giant’s fulfillment services.
- Amazon purchased land south of Atlanta on July 25 for potential data center.
- Amazon is expanding its drone delivery service, Prime Air , into select areas of Waco Texas. “Our drones deliver packages usually within 60 minutes,” Amazon spokesperson Steve Kelly said. “They deliver smaller items, about 5 lbs. Deliveries will start slowly and will ramp up, but customers can expect rapid delivery of these items. And as the program evolves, so too will the services provided through Prime Air. “
- Amazon announced Q2 earnings. According to Fortune , Amazon’s online store exceeded Wall Street’s $59 billion estimates to reach $61.5 billion and grew more than twice as fast as last year’s second quarter when online stores advanced by 5%. Services to its over two million third-party marketplace sellers bettered expectations to reach $40.3 billion, though it grew at about the same pace as last year’s second quarter.
- Also during its Q2 earnings call, Amazon reported that its recent efforts to encourage shoppers to order more fresh groceries along with other items for themselves, their homes and families are paying off. “We started expanding our very successful perishables pilot, where we offer customers perishables at the point of purchase when they’re ordering other items that will be delivered same day from our same day fulfillment modes. We’re seeing strong customer adoption as 75% of customers who’ve used the service this year are first time shoppers for perishables on Amazon, with 20% of customers who use the service returning multiple times within their first month,” reported CEO Andy Jassy during the July 31 earnings call.
- Interesting read from Quartz which discusses expanding delivery services to the rural US – Amazon is building a shadow postal service in rural America
FedEx
- According to Air Cargo News , FedEx once again topped the list of top 25 cargo airlines in IATA’s World Air Transport Statistics (WATS) report for 2024. FedEx had a 1.2% increase in volume to 18bn Cargo Tonne Kilometers (CTK), a smaller rise than many of its rivals on the list, although it remained ahead by a sizeable margin. In third place was UPS with a 6% rise to 15.1bn CTK.
UPS
- Following FedEx’s lead, UPS announced that effective August 18, 2025, when determining the dimensions of a package, UPS will round all fractional measurements of any package dimension up to the next whole inch, including length, width and height.
- United Parcel Service Inc. and its affiliates will pay $1.7 million to settle a lawsuit filed by the district attorneys for 45 California counties, alleging the shipping giant sent improperly labeled hazardous waste to area landfills. The suit alleged that UPS irresponsibly disposed of hazardous and medical waste in “regular trashbins,” which contained corrosive, ignitable and toxic materials.
- UPS was challenged by tariffs and changing consumer habits in the second quarter, but air cargo business helped improve its results according to Air Cargo News . International division revenue was $4.5bn, up 2.6%. This was “driven by a 3.9% increase in average daily volume”, said the company. However, operating profit was down 6.4% to $672m.
Jay’s Video Series
A new video has dropped in which Jay discusses UPS’ Q2 earnings. Check it here .
That’s it for now. Stay tuned for the next newsletter Aug 20. 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. In addition, be sure to check out our growing number of videos on our YouTube channel and our website for more information.
Most important though, reach out if you’d like to learn how to lower or even possibly eliminate any parcel fees. 📦
-Jay.