Peak is already here, whether you're ready or not

Record port volume, new FedEx surcharges, and the case for simplifying before you automate

As we head into August, we're seeing an uptick in brands beginning to evaluate their fulfillment strategy for next year.

Those conversations usually start with questions about providers, pricing, and geography. They almost always end up being about data. The brands that make the best decisions are the ones that invest the time up front to understand their order profile, catalog, seasonality, and operational requirements before they ever start comparing providers.

We've been thinking about that a lot at Slotted over the past few months as we've rebuilt large parts of our RFP platform. The product has evolved quite a bit over the last 20 months, but the principles behind it haven't changed.

We still believe better fulfillment decisions come from better information. Structure creates transparency. Transparency brings clarity. And clarity leads to better decisions for both brands and providers.

More recently, we've added another test to everything we build. Does it create an "ah-ha" moment for the user?

Maybe it's a brand finally understanding why SKU-level data matters during pricing, or a provider immediately recognizing how seasonality actually impacts what looked like a perfect opportunity on paper. Those are the moments that lead to better decisions for everyone involved.

It was rewarding to see that reflected in feedback we received last week from a first time user.

WHAT’S TRENDING

Parcel and customs fees are getting repriced

FedEx moved 63 ZIP codes into its highest-priced Remote tier on July 20, adding an $11.20 surcharge on qualifying commercial packages.

More changes arrive August 3, when FedEx expands its inbound processing fee to all 27 EU member states following the EU's removal of duty-free treatment for low-value imports. Amazon also begins its holiday fulfillment surcharges October 15.

Most of these costs don't show up in the transportation rates brands compare. They appear later through ZIP classifications, customs processing fees, and seasonal surcharges. It's a good time to rerate high-volume SKUs by lane and destination before peak begins.

ShipScience → | FreightWaves →

Peak shipping is already arriving

The Port of Los Angeles handled 1,002,734 TEUs in June, its busiest June in 118 years and up 12% from last year.

Executive Director Gene Seroka said retailers have largely abandoned traditional seasonal shipping patterns, choosing instead to move inventory whenever pricing and capacity create an opportunity.

For fulfillment providers, receiving schedules, labor planning, and dock utilization may start feeling peak pressure weeks earlier than the calendar suggests.

Port of Los Angeles →

Tech: Simplify and solidify before you automate

Amazon is investing roughly $200 million to rebuild its Port St. Lucie fulfillment center around robotics, temporarily taking the facility offline during construction. Walmart, by comparison, has upgraded more than half of its regional distribution centers with automation while keeping operations running.

The same pattern is showing up outside the warehouse. Dell's supply chain leadership recently argued that AI delivers the most value after workflows have been standardized, while Levi's continues consolidating multiple ERP systems onto a single SAP platform.

Whether the investment is robotics or AI, the approach is remarkably consistent: simplify the operation and solidify the process first, then automate it.

Supply Chain Dive →

Also This Week

📦Tariffs continue to evolve. The White House imposed a 50% tariff on a range of Canadian goods under Section 338, while the temporary Section 122 surcharge expires July 24. Replacement duties affecting imports from as many as 60 countries are expected to follow, with new tariffs likely stacking on top of existing ones. White House → | PBS →

📦CMA CGM expands its North American logistics footprint. The company agreed to acquire FedEx Supply Chain for $1.4 billion, nearly tripling Ceva Logistics' contract logistics presence in North America and continuing the broader consolidation trend among large logistics providers. Commercial Carrier Journal → | Maritime Executive →

PARTNER HIGHLIGHT

Highlight: Northstar Boat Ride NYC

The Northstar Boat Ride NYC is an event for verified fulfillment providers, brands, carriers, and logistics technology companies. Slotted parent company owner Aaron Alpeter will be participating in one of the executive panel alongside executives from Caraway, Rho Nutrition, ShipHero, and Third Person

Fulfillment Focus readers can use code SLOTTED99 for discounted Standard tickets. The offer is limited to the first 35 registrations.

• Through August 1: $89 instead of $129

• After August 1: $99 instead of $149

The event takes place Tuesday, August 25, departing from Brooklyn Army Terminal at 6:15 PM. Programming includes dinner, networking, and panels on brand reputation, AI, and the future of fulfillment.

OPPORTUNITIES IN FULFILLMENT

Sales Development Executive @ RR Donnelley | Pennsylvania

Director of Sales, Automotive @ Flexport | Illinois

VP, Sales - Intermodal @ Odyssey | Illinois

Director of Sales @ NFI Industries | California