Welcome to the July 12th edition of Sent Items.
We are officially past the Fourth of July, and the shipping wars are heating up. Amazon Shipping is aggressively targeting FedEx and UPS customers with low pricing and surcharge waivers, while the temporary suspension of the century-old Jones Act is already shaking up the fuel markets. And, of course, the cost of mailing a simple letter is going up yet again this weekend.
I'm incredibly honored to be the keynote speaker for the upcoming IWLA Fulfillment Forum in Chicago next month. Our July Matt's Chats is lined up for next week with some fantastic guests to talk about delivery promises and 3PL billing leaks.
Links and details for both are below.
Let’s get into it.
- Matt
Amazon Shipping Targets FedEx and UPS Customers Amazon is pushing to rapidly grow its U.S. delivery volume by offering highly competitive rates to prospective customers. Amazon Shipping—now available to all customers—is enticing shippers with lower fuel surcharges and less complex pricing structures than its legacy rivals. According to parcel pricing experts, Amazon is even undercutting the U.S. Postal Service on rates for packages weighing less than a pound. The strategy is clear: Amazon is willing to aggressively go after FedEx and UPS to carve out market share by negotiating on revenue per piece. Source: Supply Chain Dive
The Impact of Lifting the Jones Act The fuel markets are seeing a massive shift following the temporary suspension of the century-old Jones Act. A new report details exactly what happened when the maritime law was lifted by President Trump. The move has notably benefited Gulf Coast refiners, California drivers, and consumers in Puerto Rico by allowing cheaper and more flexible fuel transport across domestic waters. Source: WSJ
USPS Forever Stamp Rises to 82 Cents
The U.S. Postal Service is raising the price of a First-Class Mail Forever stamp from 78 cents to 82 cents starting Sunday, July 12. Over the past five years, the agency has raised the price of a first-class stamp six times, increasing the cost 41% from 58 cents in August 2021. The Postal Service cited a severe financial crisis and rising operational costs as the reasoning for this latest 4.8% mailing services increase. Source: USA Today
To put that into perspective, I compared the relentless rise of USPS postage against the broader stock market (S&P 500) and inflation (CPI) over the last five years - remarkably, the rise of the Stamp trailed the S&P by only a bit - 41% to 50%. Inflation was at 22% over that period. In other words, taking your idle cash and buying Forever Stamps is a darned good investment (note: this is not financial advice 😂)
U.S. Logistics Reinvented A recent feature highlights how U.S. logistics infrastructure has been completely reinvented to handle modern consumption habits, pivoting from legacy networks to hyper-localized, tech-enabled delivery models. The evolution of American commerce has never moved faster. Source: Yahoo Finance
Third Person Updates & Events
MATT'S CHATS Webinar The Promise Gap: How Smart Brands & 3PLs Are Closing It Across Delivery, Operations, and Financials A late shipment doesn't end at the doorstep. What starts with a broken delivery promise can ripple all the way through operations, landing as a costly billing dispute weeks later. Next week, we’re mapping every stage of that chain with two expert perspectives.
When: Wednesday, July 15 | 11:00 AM – 11:45 AM ET
Who: Casey Armstrong (Chief Business Officer at ShipBob) breaking down ShipBob Promise and its impact on consumer trust, and Mohnish Chakravarti (Founder & CEO of Rails) detailing the massive revenue leakage and DSO headaches that crop up when brand-3PL billing breaks down.
Sponsored by: ShipBob 👉 Register for the Webinar Here
Keynote Speaker: IWLA Fulfillment Forum (Chicago | August) I am incredibly honored to be the keynote speaker for the upcoming IWLA Fulfillment Forum in Chicago this August. We are going to be diving deep into the massive consolidation happening in the 3PL space, the changing technological expectations of scaling brands, and how to build truly resilient partnerships through our agnostic matchmaking platform.
The best part: Anyone can attend this event - members and non-members alike. In celebration of the US's 250th anniversary, they are offering $250 off registration through July 10 if you use the code USA250! 👉 Check out the event details here
Have a great week!
- Matt
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