Tighten Up Before Peak

USPS reprices parcels, ocean rates climb, and brands continue looking for simpler networks.

Tighten Up Before Peak

USPS reprices parcels, ocean rates climb, and brands continue looking for simpler networks.

The closer we get to peak, the more the conversation shifts from growth to execution. Execution is easier when things are "simple", or at least as least complex as possible. Like streamlining your provider or vendor relationships. You do need to get to a "one stop shop" solution, but having the right partners and touchpoints is critical.

Case in point: Tommy John moved from multiple fulfillment providers to a single partner. Visibility and operational simplicity outweighed the perceived benefits of a larger network.

It's a useful reminder that "bigger" isn't always better.

Along the same lines, For many ecommerce brands, one well-run node or two strategically placed facilities will outperform a larger network that adds cost, inventory complexity, and operational overhead. As pricing changes work their way through the supply chain, expect more brands to take a harder look at where complexity is actually creating value.

WHAT’S TRENDING

Brands continue simplifying their fulfillment networks

Tommy John consolidated its U.S. fulfillment with Cart.com, moving from multiple providers to a single operation in Terrell, Texas.

According to the company, the biggest benefit wasn't transportation savings. It was visibility. A single view of inventory replaced the constant reconciliation that came with managing inventory across multiple providers.

For providers, this is another reminder that simplicity has value. Clear inventory visibility and operational consistency can become differentiators long before price does.

USPS is repricing dimensional weight

Starting July 12, USPS lowers its dimensional divisor from 166 to 139 and rounds package dimensions up to the next whole inch, bringing pricing closer to FedEx and UPS.

πŸ“¦οΈ Large, lightweight shipments will see the biggest impact.

πŸ“¦οΈ Some Ground Advantage Commercial shipments lose ounce-based pricing entirely.

If you haven't rerated your highest-volume SKUs against the new dimensional rules, now is the time. Those costs will show up immediately.

Peak season is arriving early

Ocean freight continues climbing as retailers move holiday inventory earlier than usual.

πŸ“¦οΈ China to U.S. West Coast rates reached nearly $6,000 per FEU, roughly triple where they were in late February.

πŸ“¦οΈ Rail surcharges are expanding across Southern California as inland volume builds.

Receiving schedules, dock capacity, and labor planning may start feeling peak pressure well before the traditional holiday rush.

Another cross-border change arrives July 24

Beginning July 24, international postal shipments will require full customs entry data, including 10-digit HTS codes. At the same time, the temporary postal duty workaround expires.

For brands shipping internationally, brokerage, consolidation, and landed-cost planning become more important with every shipment.

One number worth watching

Amazon's four-day Prime Day generated $26.4B in sales, up 9.3% year over year.

But the real takeaway: Average basket size declined, meaning fulfillment teams handled more orders to generate the same revenue. If this is an indicator of buying patterns heading into peak season, fulfillment teams will need to make sure they have their assumptions for peak planning dialed in.

PARTNER HIGHLIGHT

2026 IWLA Fulfillment Forum

When & Where: Aug. 6 & 7 | Schaumburg, Illinois

The Vibe: A working room of warehouse and fulfillment operators, not a vendor expo floor.

ROI Hook: Benchmark your labor, automation, and pricing decisions against peers before you commit capital to them.

Who to Send: Your head of operations or GM, plus whoever owns operational strategy.

Why it's right for SMB 3PLs: The Forum skews toward mid-market warehousing and fulfillment providers facing the exact pressures in this issue, including carrier reshuffling, automation payback, and labor cost. The sessions are practitioner-led, so the takeaways tend to be things you can apply to a real P&L rather than conceptual or theoretical fluff.

Pro Tip: If you're a first timer, take advantage of the opening reception and structured breaks. The event may feel "cliquey" at first but it's because the are real relationships built over years of shared experience and participation in IWLA. The best way to maximize your ROI is to invest in the relationship with people at this event.

BONUS: I'll be taking the stage with Mike DeFabis from IDS (powered by DHL) to talk about Strategies for Winning the 3PL RFP Race. Hope to see you there!

OPPORTUNITIES IN FULFILLMENT

Sales Executive @ Radiant Delivers | Remote

Head of Procurement @ Stord | Remote

Head of Billing @ Stord | Remote

Head of Sales @ DHL | Remote