Sent Items #229: The USPS Cash Crisis, 2-Hour Delivery & The Cold Storage Thaw

Welcome to the March 29th edition of Sent Items.

I am packing my bags for South Beach this weekend as we gear up for our Miami VIP Dinner on Tuesday. The event is completely sold out. If you snagged a seat, I can't wait to see you there. If you missed out, don't worry - we have plenty more planned for this year, including our Fall September Retreat (Sept 28-30) in Nashville (applications are now open). We will begin reviewing applications in April, so apply ASAP if you are interested in attending (remember, it’s free for brands to attend!)

Let’s get into it!

- Matt

The USPS Crisis: 8% Rate Hike & 12 Months of Cash Left The Postal Service is officially sounding the alarm. This week, the USPS announced an emergency 8% rate increase driven by surging fuel costs, which will take effect April 26 and remain in place until Jan 17, pending final approval. But the real headline was the stark warning that accompanied it: the agency stated it only has about 12 months of financial runway remaining before it runs out of cash entirely. With Amazon continuing to pull volume in-house (and overtaking them in total volume last week), the USPS is facing an existential liquidity crisis. Expect major political and operational fallout in the coming months. Source: AP

FedEx Enters the Speed Wars: SameDay Local While the USPS struggles to survive, FedEx is going on the offensive. The carrier unveiled FedEx SameDay Local, a new service offering 2-hour and end-of-day delivery options. By leveraging its denser, consolidated network (thanks to the "Network 2.0" overhaul), FedEx is taking direct aim at Amazon's same-day dominance and the gig-economy couriers. If you are a brand with localized inventory, this gives you a serious new weapon in your checkout cart. Sources: Supply Chain Dive

Amazon Brings Fast Delivery to Rural America Amazon isn't just winning the cities anymore; they are coming for the country. The WSJ breaks down how Amazon is completely rewiring rural delivery by bypassing traditional hubs and injecting inventory closer to the "middle of nowhere." By bringing its fast delivery promises to zip codes that competitors historically handed off to the USPS, Amazon is effectively turning rural America into an exclusionary zone for independent brands that can't match their speed. Amazon currently operates around 560 delivery stations across the country, of which around 160 are in rural areas. At its current pace of constructing around 40 to 50 new delivery hubs a year, Amazon will be able to ship packages to every U.S. ZIP Code in four years. Source: WSJ

Cold Storage Vacancies Hit a 20-Year High The pandemic-era rush for freezer space has officially thawed. The WSJ reports that cold storage vacancies have hit a 20-year high. After years of aggressive overbuilding driven by the boom in grocery delivery and pharmaceutical needs, the market is now oversupplied. If you are a food or beverage brand looking for temp-controlled space, the negotiating leverage is firmly back in your hands. Source: WSJ

Uber Deploys Delivery Robots & Drones The autonomous delivery map is expanding. Uber has officially deployed a new fleet of delivery robots and drones, aiming to automate the most expensive leg of the supply chain-the last mile. While still localized to specific test markets, the deployment signals that gig-economy platforms are actively preparing for a future where the driver is optional. Source: Supply Chain Dive

Data Check: Spot Rates Surge on Geopolitical Tension Forget the typical post-Lunar New Year cooldown - the ocean freight market is heating back up. The latest Drewry World Container Index shows rates climbing 5% this week to $2,279 per FEU, marking the fourth consecutive week of increases. The ongoing conflict in the Middle East and disruptions in the Strait of Hormuz are tightening bunker fuel availability in key Asian hubs. Carriers are responding with slow steaming, alternative routing, and emergency fuel surcharges, pushing spot rates higher right when they should be softening. Source: Drewry WCI

Third Person Updates & Events

ONLY 2 DAYS LEFT: Third Person’s Two-Year Anniversary Promo for 3PLs! You only have two more days to take advantage of our Second Anniversary special. We are offering 3PLs 30% off our monthly rate when you commit to an annual plan!

Miami VIP Dinner (March 31) Status: SOLD OUT Our dinner in South Beach this Tuesday is officially at capacity. For those confirmed, look forward to incredible food and even better conversations. If you couldn't make this one, keep an eye out - more cities are coming soon. 👉 Event Details Here

Applications Open: The September Retreat (Sept 28-30) We are already building our next Logistics & Leadership Retreat, and applications are officially open for our fall event (Sept 28-30) here in Nashville. If you are an operator looking to connect with the best in the business, apply now. (Note: We also have a few select sponsorship opportunities open for September-reply to this email if your brand wants to get involved).

Where I'll Be

🏙️ SubSummit (Kansas City | May 13-15) I’m heading to KC in May for SubSummit, the biggest and most valuable event for subscription brands. I have an exclusive promo code coming for brands and suppliers who want to attend.

Have a great week!

- Matt

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