Amazon Dethrones USPS & FedEx Takes the Crown: The Latest Logistics News

The Flippening: Amazon Overtakes the Postal Service

It finally happened. According to new ShipMatrix data reported by Supply Chain Dive, Amazon delivered more packages in the U.S. last year than the USPS, making it the unquestioned king of parcel volume. By massively regionalizing its network and aggressively pulling volume in-house, Amazon has fundamentally rewired the American delivery infrastructure. If you are a 3PL or a brand relying heavily on the postal service, this shift in density is going to have long-term impacts on the USPS's cost structure and pricing. Source: Supply Chain Dive

FedEx Overtakes UPS as the New King of Delivery 

Volume isn't the only thing shifting. The WSJ reports that FedEx has officially overtaken UPS in global delivery revenue. This changing of the guard perfectly coincided with FedEx's Q3 earnings report last week, where the company showcased massive margin improvements driven by its aggressive "Network 2.0" cost-cutting and consolidation strategy. While UPS continues to navigate the hangover of its new Teamster contract, FedEx is leaning out its operations and reaping the financial rewards. Source: WSJ

Global Trade Disruption: The Iran War's Toll

The geopolitical situation in the Middle East has sharply escalated, and supply chains are taking a direct hit. The WSJ details how the widening conflict involving Iran is severely disrupting global trade, forcing massive detours around critical chokepoints and driving up transit times and insurance premiums. Be sure to check out the excellent chart in the article detailing the impacted shipping lanes. Source: WSJ

Data Check: Spot Rates Keep Sliding

Despite the geopolitical unrest, ocean spot rates continue to cool. The latest Drewry World Container Index composite fell again this week, providing a bit of a buffer for importers dealing with longer transit times. Source: Drewry WCI