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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Flexport Offers Shortterm Warehousing for Amazon Sellers

Flexport Offers Shortterm Warehousing for Amazon Sellers

Flexport offers short-term warehousing for Amazon-bound goods, enabling sellers to buffer and batch shipments before sending them to Amazon warehouses. This service is charged weekly per pallet, typically for storage periods of no more than a month. Sellers can optimize inventory management, reduce storage costs, and improve supply chain efficiency. For long-term storage needs, third-party logistics providers or Amazon FBA warehouses should be considered. This allows for greater flexibility and control over inventory flow to Amazon.

01/20/2026 Warehousing
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Logistics Industry Shifts Focus from Costcutting to Collaboration

Logistics Industry Shifts Focus from Costcutting to Collaboration

The logistics transportation sector faces challenges where simple cost reduction is no longer effective. This report suggests shifting towards a collaborative and mutually beneficial model, establishing long-term partnerships to navigate market fluctuations, optimize transportation processes, and improve service quality for sustainable supply chain development. Companies need to change their mindset, prioritize communication and trust, share information, and develop long-term plans. This collaborative approach fosters resilience and shared success in the evolving logistics landscape, moving beyond short-term cost-cutting measures.

01/20/2026 Logistics Industry Insights
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Ecommerce Firms Face Rising Shipping Costs from LTL USPS Changes

Ecommerce Firms Face Rising Shipping Costs from LTL USPS Changes

Significant adjustments are coming to LTL freight rules and USPS dimensional weight regulations, posing challenges to businesses facing rising logistics costs. This paper analyzes the impact of these changes on businesses and, considering the reshaping of import models in 2025, proposes data-driven logistics cost optimization strategies. These strategies include establishing a freight data analysis system, optimizing packaging strategies, and diversifying logistics service provider selection. The aim is to empower businesses to effectively navigate these challenges and mitigate the impact of increased costs.

01/20/2026 Logistics
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Trucking Industry Lobbies for Policy Changes in Washington

Trucking Industry Lobbies for Policy Changes in Washington

Led by the National Shippers Strategic Transportation Council (NASSTRAC), over ten shipper and carrier organizations will hold a lobbying event in Washington D.C. on February 1st. The initiative aims to highlight the importance of the trucking industry to policymakers and advocate for key issues. These include concerns about truck driver hours-of-service regulations, advocating for the expanded use of longer, heavier trucks, and improving the highway system. The goal is to enhance trucking efficiency and safeguard the nation's economic well-being.

01/20/2026 Logistics
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Parcel Delivery Firms Adapt Strategies for Peak Season Demand

Parcel Delivery Firms Adapt Strategies for Peak Season Demand

Based on a logistics management podcast interview with John Haber, President of Transportation Insight's Parcel business unit, this article delves into the opportunities and challenges of peak season logistics, covering key issues such as rate pricing, service levels, and the rise of Amazon Logistics. The article aims to provide businesses with strategies to navigate market changes and help them stand out in a highly competitive environment. It offers insights into optimizing parcel operations during periods of increased demand and fluctuating costs.

01/20/2026 Logistics Industry Insights
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Rail Unions Rivals Oppose UPNS Merger Over Competition Fears

Rail Unions Rivals Oppose UPNS Merger Over Competition Fears

The proposed $85 billion merger between Union Pacific and Norfolk Southern has sparked strong opposition from labor unions, who fear it will weaken railroad competitiveness and jeopardize jobs and safety. Competitors also question whether the merger will reshape the industry and reduce market competition. Union Pacific emphasizes that the merger aims to optimize customer service, improve overall efficiency, and guarantees job security for union members. The proposed merger is facing scrutiny from various stakeholders due to its potential impact on the industry landscape.

01/21/2026 Logistics Industry Insights
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USPS Faces Restructuring Layoffs and Privatization Pressures

USPS Faces Restructuring Layoffs and Privatization Pressures

The United States Postal Service (USPS) faces pressure for reform, including potential layoffs, restructuring, and even privatization. These reforms aim to improve efficiency and address financial challenges, but could negatively impact rural areas. Experts highlight the significant hurdles confronting the USPS, such as the pre-funding requirement for retiree benefits and intense market competition. The path to reforming the postal system is uncertain and complex, with various stakeholders and potential consequences to consider. The future of USPS delivery remains a key concern.

01/21/2026 Logistics Industry Insights
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UPS Secures Major USPS Air Cargo Contract Altering Logistics Sector

UPS Secures Major USPS Air Cargo Contract Altering Logistics Sector

UPS securing the USPS air cargo contract signifies a reshaping of the logistics landscape. Experts attribute this to USPS's strategic shift, intensified market competition, cost control imperatives, and the pandemic-accelerated transformation. UPS needs to effectively integrate operations and navigate competition. FedEx faces strategic adjustments and the pursuit of new growth opportunities. The logistics industry's future is uncertain, with technological innovation and service upgrades being crucial. This contract represents a significant shift and a potential turning point for major players in the industry.

01/21/2026 Logistics Industry Insights
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Uber Freight Expands Broker Access in Logistics Sector

Uber Freight Expands Broker Access in Logistics Sector

Uber Freight introduces Broker Access, designed to empower freight brokers by connecting them with quality capacity through a digital platform, optimizing operational efficiency, and reducing fraud risks. This service offers convenient booking, tracking, and payment functionalities. By integrating advanced digital, automation, and artificial intelligence technologies, Broker Access helps brokers achieve business growth and promotes a more intelligent and efficient freight ecosystem. It aims to streamline processes and provide brokers with the tools needed to thrive in a rapidly evolving industry.

01/21/2026 Logistics
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