[00:00:00] Max Garland: We’re all looking at Q4, and I think to just continue with this Canada Post strike, that is a big concern, mainly because this is all happening as shippers are preparing for the holidays and people in Canada are ordering stuff online too. We’re going to have to see how shippers respond to that. So it’s still good to keep track of this and see what shippers are doing because who knows whenever a strike happens in the U.S., be it the postal service or UPS down the road, it’s good to be prepared for these sorts of situations and see how it plays out in real time.

[00:00:31] Voice Over: Welcome to Supply Chain Now, the number one voice of supply chain. Join us as we share critical news, key insights, and real supply chain leadership from across the globe. One conversation at a time.

[00:00:44] Scott W. Luton: Hey, good morning, good afternoon, good evening, wherever you may be. Scott Luton here with you on Supply Chain Now. Folks, today on Breaking News Now, we’re going to be gaining some insights on some of the top news on recent developments in global supply chain. We’re going to hear from one of the best industry reporters out there on topics such as: What do 2025 peak season fees look like? Who is Amazon Shipping taking market share from? What’s the latest ripple effect related to the end of de minimis? All that and much, much more. And to walk us through some of these intriguing industry developments, I want to welcome in my friend, the one and only, Max Garland, Senior Reporter at Supply Chain Dive. Max, how you doing today?

[00:01:25] Max Garland: Great, Scott. Good to be back once again. I’m liking that we’re getting a regular cadence out of this.

[00:01:30] Scott W. Luton: No doubt. You’re back by popular demand. The people demanded it, Max Garland. I tell you, kidding aside, we really enjoyed your reporting and your analysis on an installment of Breaking News Now last month. We just had to have you back. But before we dive into five great stories here today, I want to level set with folks out there. Would you share a little bit about what you regularly cover at Supply Chain Dive, Max?

[00:01:52] Max Garland: Sure. Yeah. So I’m a Senior Reporter at Supply Chain Dive covering all things delivery and logistics. So if you’re managing a supply chain out there and using the likes of FedEx, UPS, or the Postal Service, I write articles on what those carriers are doing regularly, how it impacts their customers. I also report on wider logistics news as well, such as cross-border trade and warehouse fulfillment. So there’s a variety I cover there over at Supply Chain Dive.

[00:02:20] Scott W. Luton: You’ve got your finger on the pulse, and it’s information and analysis and reporting that folks have got to lean into — one of the trusted voices in the industry. So it’s great to have you here on Supply Chain Now via our Breaking News Now. I want to get into some of what you’ve been reporting on in recent weeks, recent days, maybe recent hours. We’ve got five stories to walk through here. I want to start with an overview of the fees set for the 2025 peak season. So it seems like, of course, an annual rite of passage for fee increases at FedEx, UPS, USPS, and others. However, Max, some carriers are touting no fee increases as a means of hoping to gain market share. Let’s see here — UniSpeed, X-LSO, GoBolt — trying to capitalize on a no-fee, no-fuss approach. So Max, tell us more.

[00:03:11] Max Garland: Yeah, so as you noted, Scott, holiday surcharges are an annual tradition. This year’s no different. If you’re a company that ships a lot in Q4 — think Black Friday, Cyber Monday, days before Christmas — peak season could be a huge pain point in terms of your bottom line. And I don’t think these surcharges are just copy and pasted from last year. For a lot of the big carriers, their fees have increased from 2024. For FedEx and UPS, they cover a bunch of services including Ground, Express, and the bigger, bulkier packages too. FedEx has a demand surcharge that can be as high as $3.55 for Ground Economy, and that’s their economical option. If you’re a retailer shipping thousands of packages a day, that can add up. Even Amazon’s getting in on the action. Amazon Shipping has a very similar peak season surcharge structure. So it’s going to be interesting to see what companies do to navigate these this year — especially since consumers are so price sensitive, right? You don’t want this to trickle down to the consumer. So for shippers, negotiate with your carrier, maybe incentivize customers to buy gifts earlier, use alternative delivery providers, including the ones Scott mentioned, that don’t have these peak season surcharges. There are a lot of strategies you could use, but you have to be proactive. Don’t wait.

[00:04:32] Scott W. Luton: Don’t wait — you wait, you lose, I think is the old saying. And you made a great point there because consumers aren’t looking to write a bigger check anytime soon, am I right, Max?

[00:04:43] Max Garland: Yeah, absolutely. I mean, the past few years, Scott, we’ve had inflation becoming a big issue. The tariffs — their exact impact right now remains to be seen — but consumers are definitely more price-conscious. That’s what they’re prioritizing over anything else nowadays. So you’re going to want to make sure that any sort of shipping fees and stuff like that don’t inhibit them from ultimately making that checkout and making that order with you.

[00:05:10] Scott W. Luton: Good stuff there, Max. And folks, if you’re using one of those carriers that aren’t increasing their fees during peak season, let us know. Give us your experience. I’d love to learn more. Okay, so Max, moving right along — at Prom Speed, Amazon Shipping continues its march forward. In this case, Bark, which owns the popular BarkBox monthly pet treat delivery service, is the latest to make the switch. And by the way, don’t tell my two hounds that BarkBox is out there, because Ruby and Sonny would be the next subscribers. But Max, tell us about this latest win from Amazon Shipping.

[00:05:44] Max Garland: We talked earlier about Amazon mirroring those FedEx and UPS holiday fees to an extent, and now Amazon’s beginning to look a lot like FedEx and UPS in other ways. They’re attracting shippers that previously used more traditional carriers. Instead, they’re using Amazon Shipping, which makes deliveries for orders everywhere — even outside of Amazon’s website. So we at Supply Chain Dive covered some notable examples recently of companies opting to use Amazon Shipping instead of an old-school established option. One is a familiar name for a lot of dog owners — that is Bark, owner of BarkBox, as Scott mentioned. Yeah, don’t get in trouble with your dogs about that — mine too. Unfortunately, they’re using Amazon for delivery seven days a week. They switched over and have seen improved transit times by at least a day for the majority of their customers. It’s also come at a lower cost for them.

[00:06:37] Max Garland: They used to be using a lot of Postal Service-reliant options, and there have been a lot of price increases there from those traditional carriers. So they looked elsewhere and found a home with Amazon. There’s also KiwiCo — they have a kid subscription box service. They made a similar sort of switch. They use Amazon Shipping to send around 200,000 packages a month, and they said Amazon was cheaper on a per-package basis. Now, this isn’t a plug from me for Amazon Shipping — it’s just to demonstrate that shippers have a lot of options for delivery nowadays, and if they don’t like the service or the price point of their current carrier, they can switch. That sort of diversification could challenge FedEx and UPS out there.

[00:07:18] Scott W. Luton: Max, great comment. Options are a good thing — and there are more options today than arguably ever before, which is a good thing as well. Alright, so Max, let’s get to the real news. So my two hounds, Sonny and Ruby — both are rescue hounds — and I’ll tell you, I’ve never seen it, but both of them love carrots. I go to Costco, get a big bag of organic carrots — costs me four bucks. They’re massive carrots, and they tear these things up. It’s the cheapest dog treat I’ve ever found. What are your hounds into?

[00:07:46] Max Garland: Oh, they love anything salmon. Salmon treats are kind of in vogue at the Garland household. It’s a lot of salmon treats, a lot of stuffed toys — although they tend to be less entertained with the stuffed toys after a day or two. So I’ve got to keep up with them, got to keep buying.

[00:08:05] Scott W. Luton: No doubt, man — the pet trends these days. Okay, well before we continue with the news, we’re big on sharing resources — and Max Garland and Supply Chain Dive are certainly great ones — but folks, I want to invite you to join us on October 21st for our regular monthly leadership series that we call The Bridge. The one and only Debra Dole is going to join us to tell us how we can optimize our digital transformation leadership ability. So come join us on October 21st.

[00:08:51] Scott W. Luton: So Max, let’s talk about UPS for a moment, because a ripple effect from the major movers and shakers navigating a bevy of buyouts continues, and a lot of those buyouts have come at the driver and management ranks. Max, what’s the latest here?

[00:09:06] Max Garland: So for those who haven’t been keeping up, UPS is offering buyouts for drivers for the first time in its very long history. The buyouts started at the end of August, and at the end of September UPS started buying out operations managers too — or that’s what the announced date was. But from the sources I talked to and what UPS has said, Scott, it’s really geared toward those more senior drivers who have a lot of years and are likely at the top end of the pay scale that UPS is trying to entice here.

If they get younger and cheaper in their workforce, that can help their bottom line. But I think what we’re all going to be watching closely is how this impacts service without some of that tribal knowledge — those drivers who’ve been there for decades or operations leaders who really know the business. Does that impact service? It’s a risk.

And while this has been happening, the Teamsters Union, which represents a lot of UPS employees, is saying there’s a big overtime problem currently. So will more buyouts strain that issue? Because UPS’s workforce has already shrunk quite a bit since the heights of the pandemic. The holidays aren’t that far away, Scott, and as they’re doing these buyouts, if you drop the ball as a delivery company during that time, that can hurt your reputation. We’ll have to see how they handle it and if they handle it smartly.

[00:10:08] Scott W. Luton: Yeah, it really is interesting times for the dominant major carriers and the upstarts. Appreciate your reporting and analysis there as always. Speaking of change, de minimis came to an end on August 29th, I believe, and the ripple effect, Max — ripple effect — is still being felt across industry. Tell us some of your latest observations here.

[00:10:33] Max Garland: So the end of de minimis has been a recurring topic for us here, Scott, and for good reason — it’s forcing a lot of companies to drastically rethink how their supply chains operate.

De minimis was a rule that allowed low-cost imports into the U.S. — less than $800 — to enter duty- and tax-free. As of August 29th, as you mentioned, that’s no longer the case. So if you’re in the U.S. and you order a shirt from Canada, it now has to face the same tariffs as a big container of shirts.

That’s the problem Lululemon is facing right now as one of the big examples. Lululemon has a lot of warehouses in Canada that are designed to fulfill e-commerce orders going to U.S. customers. In fact, two-thirds of U.S. orders are fulfilled through Canada. Those locations were fine when they didn’t have to worry about import taxes, but now it makes that fulfillment and shipping process a lot more expensive.

They’re saying gross profit for the year is expected to take a hit of $240 million due to the end of de minimis. Those tariffs make them more exposed. So they’re considering adjustments to their distribution, smarter inventory placement — things like that. They’re hard but necessary changes, Scott, and I imagine Lululemon is just one of a few companies that are looking for a big supply chain overhaul due to no more de minimis.

[00:11:57] Scott W. Luton: Man, question — I can’t remember if I asked you this last time or not. Do you see a situation where de minimis, and that exception that’s been used quite a lot in recent years, could ever come back?

[00:12:09] Max Garland: It’s possible. I wouldn’t rule it out, but we’d have to see kind of a collective push from businesses, smaller merchants, and consumers who are impacted by this. Because for a while now, people have been flagging concerns that de minimis allowed more illicit shipments into the U.S. due to less monitoring of those types of imports.

So there’s been debate for a couple of years now — both ways — about the benefits and downsides of de minimis. That debate could continue, but whether that swings things back to where they were, it would take quite a bit of effort for us to get back there.

[00:12:53] Scott W. Luton: I’m with you. If anything, I might see a very modified version of it. But to your point, it would take a groundswell — from policymakers in D.C. to industry voices to the consumer base — demanding it. So we shall see. Really appreciate your take there.

We’ve got one more story here today to tackle with you, Max Garland, and that’s what’s going on at Canada Post, because it continues to strike. However, it moved — I think as of this morning — from a nationwide strike to more of a rotating strike approach. Max, what’s the latest here?

[00:13:28] Max Garland: Yeah, yeah, it’s very appropriate we’re talking about this on Breaking News Now, Scott, because the union representing Canada Post workers announced they’ll be scaling back their nationwide strike starting this Saturday. The strike has been going on for a little over two weeks now. That’s a relief for businesses that use Canada Post, because they’ve been saying no parcels or mail would be processed or delivered.

But the shift doesn’t mean all the disruption is over. They’re shifting instead to rotating strikes. So shippers will really need to keep an eye out to see if there are disruptions in specific areas where they use Canada Post a lot.

This is still a big concern for a lot of shippers in Canada, especially smaller businesses, online sellers, and those shipping to more rural areas. The strike was really set off by changes Canada’s government wants Canada Post to make so it stops losing money. Canada Post is on board with those reforms — their workers’ union is not. They’re saying it could hurt Canada Post’s business reputation, and the union says it could roll back some of the perks for employees as well.

So for shippers, all this means that these sorts of labor disruptions could go on for quite a long time. There’s still a lot left to be resolved in the dispute.

[00:14:47] Scott W. Luton: We’re going to keep our finger on the pulse there. And on a similar note with USPS here in the United States — you, I, and Kevin L. Jackson had an interesting conversation a few months back. I can’t remember if it was you or Kevin, but one of y’all made the great point that it starts with defining the responsibilities.

What are the responsibilities that USPS owes shippers and customers? Because it really has morphed and evolved. Max, I don’t know about you, but most of my mail these days — 95% of it — is paid promotional stuff, companies sending marketing material and taking advantage of really good rates.

I think it begs the question: is that a big part of the responsibility of USPS these days? I don’t know. I think it’s a conversation we’ve got to have. Your quick thoughts?

[00:15:36] Max Garland: Yeah, absolutely. I mean, for the Postal Service and Canada Post, both of these organizations are going through financial issues right now. The big question is: what direction do they want to take? Is it focused on service at all costs — universal service — or is it moving to that more profitable model of a FedEx or UPS-type company?

They’re both at a crossroads here, right? We’re probably going to see some big changes in the coming years because they need to be made.

[00:16:05] Scott W. Luton: So true, Max. And it goes back to de minimis — the loophole — because there are loopholes, at least with USPS, that companies take advantage of, from bulk rates to all sorts of incentives. It’ll be interesting to see the next few years, as you point out, because of the financial crossroads we’re at.

Good stuff. I’ve got a question for you, Max — this might be the toughest one of the day. So you’ve got a crystal ball that’s working a lot better than mine. As you peer deep into that crystal ball, what’s one story, development, or trend that you think is going to create some waves in the short term ahead?

[00:16:39] Max Garland: Well, for the short term, I mean, we’re all looking at Q4, and I think continuing with this Canada Post strike — that’s a big concern, mainly because this is all happening as shippers are preparing for the holidays and people in Canada are ordering online too. There are options out there — FedEx, UPS, smaller carriers — but Canada Post has this reputation for low rates and nationwide service that private carriers can’t quite match.

So we’re going to have to see how shippers respond. A lot of brands have already moved their volume away from Canada Post due to the ongoing tension. Even if you aren’t a Canada Post shipper, if you ship a lot in Canada, it’s still good to keep track of this and see what others are doing — because who knows, whenever a strike happens in the U.S., whether it’s USPS or UPS, it’s good to be prepared for these situations and see how it plays out in real time so you can have contingency plans in place.

I think we’re all going to be watching it closely during peak season to see how it develops.

[00:17:44] Scott W. Luton: No doubt. And we hope that causes the least amount of damage, especially as you point out, this time of year when families are getting together and celebrating good food, gifts, and holidays.

Max, good stuff. Folks, Max brought it — on time, in full, as he always does. Before we make sure folks know how to connect with Max, I want to share one more great resource, because again, you’ve got to tune into the trusted voices out there.

We spoke a lot about the world of freight. I invite you to check out one of our latest Supply Chain Now blog articles, where Bart Debunk writes on the ever-evolving world of freight audit and payment (FAP). Tons of innovation going on there. You can check it out.

Okay Max, you’re a tough guy to keep up with. You stay really busy, churning out a lot of data-driven, fact-based reporting and insights. How can folks track down one Max Garland and Supply Chain Dive?

[00:18:40] Max Garland: There are two good ways to do that. One is to subscribe to the Supply Chain Dive newsletter. We have a variety of newsletters, including a daily news roundup and weekly editions geared toward particular topics. You can find that on supplychaindive.com and pick out the ones you like — logistics, procurement, or general news.

The other is my LinkedIn page — just search Max Garland, give me a follow. I post regularly about stories I’ve covered, and the comments on those posts can be fun to follow as well. A lot of industry folks weigh in, so it’s a great resource for anyone wanting to keep up with all this news we’ve talked about.

[00:19:20] Scott W. Luton: Max, no doubt. And as we talked about last time, the conversations in those comments — there are some golden nuggets there for sure. Really appreciate you joining us here today on Breaking News Now.

Folks, Max is one of the best. If you’re not checking out what he and the team are doing at Supply Chain Dive, you’re missing out. It’s one of my go-tos. And Max, cover your ears — I love the Wall Street Journal’s Logistics Report and their regular newsletter as well. Those two are great sources to know what’s going on.

Max Garland, really appreciate you being here today. I look forward to you joining us — I think we’ve got you lined up for November and December too, is that right?

[00:19:55] Max Garland: We do. We do. So until next time, Scott, we’ll discuss the latest and greatest news then.

[00:20:02] Scott W. Luton: Outstanding. We finally got through Max’s agent and got him booked — it’s terrific to have him here. Folks, we’re going to make it really easy: you can check out, follow, and connect with Max on LinkedIn, and I encourage you to do just that.

Alright everybody, I hope you enjoyed and learned from this conversation as much as I have. Love Max’s perspective. The pace of global business velocity — it’s only getting faster and faster. You’ve got to stay informed by turning to trusted sources of sound information and analysis. And as I told you, Max Garland is one of the best in the biz.

Be sure to connect with him and the Supply Chain Dive team at supplychaindive.com — and again, you can follow Max on LinkedIn.

So all that said, Scott Luton here, on behalf of the Supply Chain Now team, challenging you: do good, give forward, be the change that’s needed. And we’ll see you next time right back here on Supply Chain Now. Thanks everybody.

[00:20:49] Voice Over: Join the Supply Chain Now community for more supply chain perspectives, news, and innovation. Check out supplychainnow.com, subscribe to Supply Chain Now on YouTube, and follow and listen to Supply Chain Now wherever you get your podcasts.