Lastmile Delivery Costs Challenge Retailers Amid Demand for Speed

Lastmile Delivery Costs Challenge Retailers Amid Demand for Speed

High last-mile delivery costs drive intense logistics competition behind e-commerce's 'free shipping' promise. This article analyzes various delivery models, including 'coopetition,' e-commerce companies building their own logistics networks, and individual operators. It highlights delivery density as crucial for cost reduction and emphasizes the need for shippers to understand their service providers, ultimately responsible for 'free next-day delivery.' Understanding the nuances of these models and focusing on efficiency are key to navigating the challenges of modern e-commerce fulfillment.

01/20/2026 Logistics Industry Insights
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October Shipping Volumes and Costs Decline Cass Index Shows

October Shipping Volumes and Costs Decline Cass Index Shows

The Cass Freight Index reveals a year-over-year and month-over-month decline in North American freight volumes and expenditures for October, reflecting macroeconomic slowdown and inventory overhang. Despite short-term pressures, economic recovery and structural adjustments are expected to create new growth opportunities. Companies need to pay close attention to market dynamics and respond flexibly. The downturn highlights the need for efficient supply chain management and strategic adaptation to navigate the evolving economic landscape. Proactive measures will be crucial for businesses to weather the current challenges and capitalize on future upturns.

01/20/2026 Logistics Industry Insights
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Amazon Sellers Adopt Direct FCL Shipping to Cut Costs

Amazon Sellers Adopt Direct FCL Shipping to Cut Costs

This article provides a detailed explanation of the three key requirements for Amazon FCL (Full Container Load) direct shipping: ocean freight FCL transportation, Amazon assigning only one warehouse, and origin labeling. It also answers frequently asked questions regarding delivery appointments, cargo packaging, and rejection risks. The aim is to help sellers efficiently complete the Amazon FCL inbound process, saving both time and costs. This guide helps navigate the complexities of FCL direct shipping to Amazon fulfillment centers.

01/20/2026 Logistics Encyclopedia
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Shipping Guide Shenzhen to Los Angeles Costs and Logistics

Shipping Guide Shenzhen to Los Angeles Costs and Logistics

This article provides an in-depth analysis of freight options from Shenzhen to Los Angeles, comparing the advantages and disadvantages of air and sea freight, along with their respective prices. It examines key factors influencing transit time and costs, such as fuel surcharges and customs clearance. Furthermore, the article offers practical advice on selecting a freight forwarder, focusing on experience, network, and communication skills. Ultimately, this guide helps you optimize your international freight strategy for cost-effectiveness and efficiency.

01/20/2026 Logistics
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LTL Trucking Sector Struggles Amid Falling Demand Higher Costs

LTL Trucking Sector Struggles Amid Falling Demand Higher Costs

The US LTL transportation market faces dual challenges of weak demand and rising costs. ODFL data shows declines in both daily revenue and freight tonnage. While ports maintain smooth operations through investment and data optimization, LTL carriers need to optimize operational efficiency, improve service quality, expand diversified businesses, embrace digital transformation, and strengthen cooperation to cope with market changes and achieve transformation and upgrading. These strategies are crucial for navigating the current economic climate and ensuring long-term sustainability in a competitive freight environment.

01/20/2026 Logistics Industry Insights
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Rail and Intermodal Freight Hit by Rising Fuel Costs

Rail and Intermodal Freight Hit by Rising Fuel Costs

According to the Association of American Railroads, rail freight and intermodal volumes have recently seen slight declines, but cumulative totals remain positive. Rising fuel costs are driving shippers to explore intermodal solutions, although performance varies across different commodity categories. Looking ahead, strengthened infrastructure development and supportive policies will be crucial for fostering the sustainable growth of rail freight and intermodal transportation. While recent trends show minor dips, the overall picture suggests continued reliance on rail and intermodal for efficient and cost-effective freight movement.

01/21/2026 Logistics
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USPS Expands Lastmile Delivery to Cut Costs Speed Service

USPS Expands Lastmile Delivery to Cut Costs Speed Service

USPS plans to open its last-mile delivery network, offering services to retailers and logistics providers through a bidding process. This initiative aims to reduce last-mile costs, improve delivery speed, and generate new revenue streams for USPS. Challenges include the complexity of the bidding process and pricing predictability. However, if successful, this move could reshape the US logistics landscape by providing increased capacity and potentially lower costs for shippers. The open bidding process is intended to foster competition and innovation within the delivery sector.

01/21/2026 Logistics Industry Insights
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Data Analytics Boosts Freight Efficiency Cuts Supply Chain Costs

Data Analytics Boosts Freight Efficiency Cuts Supply Chain Costs

This paper explores how digital freight networks enhance supply chain transparency through data analytics. It examines how shippers can optimize operational expenses, improve facility performance, reduce carbon emissions, and become shippers of choice. The study emphasizes the importance of building a data-driven logistics system and leveraging data insights for continuous improvement. By harnessing the power of data, companies can gain a competitive edge and drive efficiency across their supply chain operations. This ultimately leads to a more sustainable and resilient logistics ecosystem.

01/21/2026 Logistics Industry Insights
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Supply Chains Face Pressure As Costs Rise Labor Lags

Supply Chains Face Pressure As Costs Rise Labor Lags

Supply chain pressure isn't solely driven by geopolitical events; high freight and labor costs account for a significant portion. Reports indicate a persistently tight US labor market, while logistics pressure is primarily affected by the Russia-Ukraine conflict. Companies should optimize their supply chain structures, diversify sourcing channels, and invest in automation technologies to address these challenges. These factors contribute significantly to the overall strain on supply chains, necessitating proactive strategies for mitigation and resilience.

01/28/2026 Logistics Industry Insights
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Microwarehousing Gains Traction As Retailers Tackle Costs Delivery Pressures

Microwarehousing Gains Traction As Retailers Tackle Costs Delivery Pressures

This report provides an in-depth analysis of the challenges currently facing the retail industry, including urban congestion, rising delivery costs, surging demand for instant fulfillment, and soaring land prices for traditional distribution centers. It explores micro-warehousing as a novel solution to address these challenges. The report details the operational models, logistical impact, and potential opportunities and challenges of micro-warehousing. Its aim is to help businesses better understand micro-warehousing and assess its suitability for their own operational needs, providing insights into this evolving last-mile strategy.

01/29/2026 Logistics Industry Insights
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