MODEX wrapped in Atlanta today. I was only there for a day this year, but a few things stood out pretty quickly.

Optionality is everywhere. Especially in the ASRS space. There are more viable solutions than ever, which is great, but it also makes the decision harder. The question becomes less about what exists and more about what actually fits your operation.

For providers running multi-client facilities, the conversation kept coming back to terms. It’s tough to commit to long-term, rigid agreements with technology partners when your own customers are pushing for more flexibility in how they engage with you.

And while robotics are still the headline, the more important question is where you are in your automation journey.

Process standardization comes first. Then automation. Then optimization.

Trying to jump straight to optimization through robotics tends to create more problems than it solves. That’s where ROI starts to fall apart before the system is even fully live.

What's trending

Freight costs are stacking across every mode

📦 Six weeks into the Strait of Hormuz disruption, cost pressure has worked its way into every mode. Ocean rates are up roughly 40% since before the conflict, and fuel constraints are starting to show up in bunker supply.

📦 Diesel is now above $5.60 per gallon nationally, putting most Q1 cost assumptions out of date. Airfreight is no longer a reliable pressure release with rates rising even as volume declines.

📦 Looking ahead, potential Panama Canal constraints later this year add another layer of risk on top of an already tight global network.

Freightos Index | JOC Forecast

UPS and FedEx are both mid-reset

📦 UPS is closing facilities, reducing headcount, and shifting away from lower-margin ecommerce volume. At the same time, they are investing heavily in visibility and network efficiency.

📦 FedEx Freight is spinning off as a separate company while broader network changes continue. Pricing adjustments are already coming through, including increases on One Rate.

📦 For shippers and 3PLs, both major carriers are changing their networks at the same time. Service levels and pricing assumptions are not as stable as they were even a few months ago.

UPS Reset | FedEx One Rate

Tariff operations are shifting in real time

📦 The CBP refund portal goes live April 20, opening access to a large pool of tariff refunds. Many importers are already registered, but documentation and classification accuracy will matter on the back end.

📦 At the same time, brands are actively restructuring sourcing and distribution strategies in response to ongoing tariff pressure and rising input costs.

📦 Refund opportunities and new cost exposure are happening in parallel, which makes planning more complex than a typical tariff cycle.

Tariff Refunds | Adapting Supply Chains

Resource to Know About: Your Shipping Partners (YSP)

Shipping costs are one of the fastest ways fulfillment providers can improve margins, especially on USPS-heavy volume.

Your Shipping Partners (YSP) helps 3PLs and brands access enterprise-level carrier rate cards without changing how the warehouse operates. The model is straightforward. Connect your WMS to YSP’s rate card and continue shipping as usual. Labels print the same way, pick and pack does not change, and teams do not need retraining.

Where providers typically see the biggest impact:

1. Stronger USPS pricing for lightweight DTC shipments

2. Enterprise carrier rate access across USPS, FedEx, DHL, and Amazon that smaller operators typically cannot secure on their own

3. Quick integration through API, plugin, or WMS connection, often completed within 24–48 hours

4. 10–25% shipping cost reductions compared to standard merchant pricing

5. The typical approach is simple. Start with a portion of USPS volume or one brand, validate service and economics for a week, and scale if the savings are there.

6. For providers managing high DTC parcel volume, especially under 20 lbs, programs like this can create meaningful margin improvement without adding operational complexity.

Ready to improve your margins? Meet with the YSP Team

Opportunities in Fulfillment