Sent Items #226: Tariff Refund Chaos, K+N Earnings Drop & Miami Bound!

Welcome to the March 8th edition of Sent Items.

It has been a busy couple of weeks behind the microphone. If you are looking for some weekend listening, I recently joined Izzy from Portless on The Modern Supply Chain podcast. I had a blast discussing the evolving logistics landscape, the D2C 2.0 profitability mandate, and why treating your 3PL as a simple utility is a massive mistake.

• Watch on YouTube: Link

• Listen on Apple: Link

• Listen on Spotify: Link

Guest Appearance on Apple & Spotify I also dropped by another great show last week to talk shop. Catch the full episode on your preferred platform:

I was also a guest on the Out of the Box podcast, hosted by Abby Justinger (Pitney Bowes) and Margherita Carrozzo (AutoStore). We dove into why choosing the right fulfillment partner is more nuanced than most brands think, and how your product profile, growth stage, and operational complexity should shape your decision.

• Apple Podcasts: Listen Here

• Spotify: Listen Here

Finally, if you missed last week's live Matt’s Chats, the recording is now up! We dug deep into the future of physical AI and robotics in the warehouse and how tech is redefining profitability. You can watch the episode here:

Off the mic, I am gearing up for our March Logistics & Leadership Retreat right here in Nashville next week (March 16-18). For those attending, it is going to be an incredible few days. We just opened applications for our Fall retreat (apply here - it’s free for brands!).

Finally, we are heading to Miami at the end of the month for our next VIP Operator's Dinner (free event for all, limited capacity - RSVP here).

Let’s get into it.

— Matt

The Tariff Refund Chaos: CBP Says "We Can't" The hangover from the Supreme Court's decision to strike down the IEEPA tariffs has officially arrived. Supply Chain Dive reports that Customs and Border Protection (CBP) has informed the Court of International Trade that it simply does not have the administrative capacity or the mechanisms in place to process the estimated $130 billion in refunds owed to importers. If you were hoping for a quick check from the government to pad your Q2 margins, you are going to be waiting a while. This is going to be a protracted legal and administrative mess. Source: Supply Chain Dive

Costco Pledges to Pass Tariff Refunds to Members While the government tries to figure out how to process the $130 billion in tariff refunds, Costco already knows exactly what it’s doing with the cash. In this week's earnings call, CEO Ron Vachris confirmed that the retail giant is committed to flowing any recovered funds directly back to its members through "lower prices and better values." Costco was one of the loudest voices suing the administration over the IEEPA tariffs, absorbing much of the initial cost rather than raising prices. By immediately committing future refunds to price cuts, Costco is weaponizing this legal victory to defend its market share against Walmart and Target. If you sell wholesale, prepare for Costco buyers to be even more aggressive on margins. Source: CFO Dive

Global Squeeze: Kuehne+Nagel Earnings Drop The macro environment is catching up to the giants. Kuehne+Nagel, one of the world's largest freight forwarders, reported a sharp drop in earnings this week, citing a "deteriorating" global trade environment. As volumes soften and post-pandemic capacity normalizes, the massive margins forwarders enjoyed over the last few years are evaporating. It is a clear signal that the market has definitively shifted back in favor of the shipper. Source: WSJ

Data Check: Ocean Spot Rates Continue to Sink Speaking of a shipper's market, the ocean freight cooldown is accelerating. The latest Drewry World Container Index shows rates sliding further as the post-Lunar New Year lull takes full effect. The composite index continues to correct downward across major East-West routes, providing some much-needed relief for brands planning their summer and fall inventory injections. Shanghai-LA spot rates are up 10% on the week, however. Source: Drewry WCI

Third Person Updates & Events

Two-Year Anniversary Promo for 3PLs We are still celebrating Third Person’s second anniversary! If you are a 3PL operator looking to join the ecosystem, we are offering 30% off our monthly rate when you commit to an annual plan.

Next Week: The March Retreat (Nashville) We are just days away from our March Logistics & Leadership Retreat (March 16-18) at Soho House Nashville. It is shaping up to be an amazing event. Keep an eye on my LinkedIn next week for live updates and a peek at the incredible sponsors making it happen! [Here’s a sneak peak]

Applications Open: The September Retreat (Sept 28-30) Our second Logistics and Leadership Retreat is coming up next month in Nashville, and it is going to be amazing. But we all know each iteration gets even better, which is why we have officially opened applications for our September Retreat (Sept 28-30)! If you are an operator looking to connect with the best in the business, apply now. Recall, this is a completely free trip for brands, including a 2-night stay at the Soho House. (Note: We also have a few select sponsorship opportunities open for September - reach out if interested).

Miami VIP Dinner (March 31) We are taking the show on the road again! Following the massive success of our Austin dinner, we will be hosting our next VIP Operator's Dinner in Miami on March 31. Space is extremely limited, so request your spot before it fills up. 👉 RSVP / Request a Spot Here

🏙️ SubSummit (Kansas City | May 13-15) I’m heading to KC in May for SubSummit, the biggest event for subscription brands. I have a great deal for brands who want to attend (note: it’s free + you get travel stipend). For vendors/suppliers, I can get you a deal as well. This is one of the highest-value events of the year for DTC operators.

Have a great week!

- Matt

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