Logistics Pulse by FulfillYN

The 30-year relationship between Amazon and the U.S. Postal Service just hit turbulence. Amazon confirmed Thursday it's "evaluating all options" after new Postmaster General David Steiner announced plans for a reverse auction in early 2026—forcing Amazon to compete with national retailers and regional shipping firms for access to postal facilities.

The drama: Amazon provides USPS with more than $6 billion annually (7.5% of postal revenue), making it the agency's top customer. After nearly a year of negotiations toward extending their partnership, Amazon says it was "surprised" by the auction announcement.

The stakes are massive:

The power dynamic: "USPS needs Amazon a lot more than Amazon needs USPS," said e-commerce analyst Juozas Kaziukenas. "Amazon has all the cards in their hands in this case."

Amazon's already pledged $4 billion to expand its rural delivery network by end of 2026. The company's sprawling warehouse network and largely non-union workforce give it cost advantages that would make building out delivery even more attractive.

Translation for 3PLs: If Amazon splits from USPS, expect the parcel market to shift dramatically. Amazon will likely accelerate capacity buildout, potentially creating more partnership opportunities—or more direct competition.

The Logistics Managers' Index dropped to 55.7 in November, down from 57.4 in both September and October. That's the ninth straight month below the historical average of 61.4, and the report's authors are seeing some worrying signs.

The standout concern: Warehousing utilization plummeted 9% to 47.5—marking the first time in the LMI's nine-year history that respondents reported using less available warehouse space month-over-month. Companies are burning through the inventory stockpiles they built earlier in 2025, leading to a softening warehouse market.

Other key metrics:

The transportation picture is more positive: The 14.9-point spread between transportation prices and capacity is the second-largest since April 2022, suggesting a relatively healthy freight market. But there's a catch—the improvement is mainly driven by downstream retailers moving holiday inventory, meaning it could recede quickly post-holidays.

Bottom line: Warehouses are seeing softness while transportation is stabilizing. If you run a warehouse, brace for continued pricing pressure. If you're in trucking, enjoy the seasonal bump but don't bank on it lasting into Q1.

The market is moving. In the last six months alone, FulfillYN has successfully closed three 3PL sales—all between 3.5-5x EBITDA, with deals closing in 3-6 months.

Here's what makes the difference:

Whether you're planning an exit in the next year or just exploring what your business might be worth, now is the time to have the conversation. The buyer pipeline is strong, and valuations remain healthy for well-run operations.

Ready to explore your options? Fill out this form: 3PL Acquisition form.

Amazon just fired its biggest shot yet in the battle for Europe's budget-conscious shoppers, announcing sweeping fee reductions targeting the ultra-cheap platforms eating into its market share.

Starting December 15, referral fees for budget fashion items drop dramatically: 5% instead of 7% for clothing and accessories priced up to €15 or £15, and 10% instead of 15% for items in the €15-20 or £15-20 range. Fulfillment fees in Germany, France, Italy, Spain, and the UK will also fall by an average of €0.32 or £0.26 per parcel.

More cuts are coming February 1, targeting home goods, pet clothing, groceries, and vitamins—categories Shein and Temu have aggressively expanded into recently.

The competitive pressure is real:

The pricing gap is enormous: Shein routinely sells tops for as little as €3 and jeans for around €8, setting a new standard Amazon can't match without changes.

Amazon's strategy shift: Last month, the company expanded Amazon Bazaar—its ultra-low-cost marketplace featuring $2-$10 items—into more international markets. Combined with these fee cuts, Amazon is signaling it's ready to compete on price, not just convenience.

Industry analysts say the reductions have a dual purpose: helping sellers stay competitive while narrowing the pricing gap with Asian platforms. Lower commissions typically translate into lower retail prices.

But the battle isn't settled: Shein and Temu benefit from deeply subsidized shipping from China and ultra-low operating expenses. Temu's marketing spending—estimated in the billions—continues to overwhelm competitors, while Shein's design-to-production cycle is as little as 7-10 days compared to traditional retailers' 3-6 months.

For logistics: Amazon's fee cuts signal a new phase in the e-commerce price war—one that Amazon, for the first time in a decade, isn't guaranteed to win. Expect more pressure on fulfillment costs as the pricing battle intensifies.

The Transportation Department just dropped a bomb on the trucking industry: nearly 3,000 of the 16,000 truck driving programs listed nationwide may be forced to close if they lose certification for failing to meet minimum training requirements.

The numbers are staggering: The department plans to revoke certification for nearly 3,000 schools unless they comply within 30 days. Another 4,500 schools are being warned they may face similar action. Schools that lose certification can no longer issue the certificates showing a driver completed training that's required to get a license—meaning students will abandon them.

It's unclear how many of these schools have been actively teaching students, but the potential impact is massive.

The broader crackdown: Separately, the Department of Homeland Security is auditing trucking firms in California owned by immigrants to verify driver status and commercial license qualifications.

This follows Transportation Secretary Sean Duffy's focus on ensuring truck drivers are qualified and eligible after a truck driver he says was not authorized to be in the U.S. made an illegal U-turn causing a crash in Florida that killed three people.

Duffy has threatened to pull federal funding from California and Pennsylvania, proposed significant new restrictions on which immigrants can get commercial licenses (currently on hold by a court), and just threatened to withhold $30.4 million from Minnesota over commercial license program shortcomings.

So far, every state Duffy has threatened has been Democratic, though he says the department is auditing Texas and South Dakota as well.

For logistics: The driver shortage is about to get worse. If thousands of training programs shut down, the pipeline for new drivers dries up. Expect wages to rise and capacity to tighten further, particularly in regions with heavy enforcement activity.

Costco sues Trump admin for tariff refund The wholesale retailer is asking for a "full refund" of all duties paid under President Trump's reciprocal tariff policies, becoming the biggest company to sue the administration over tariffs. The company joins Ray-Ban-maker EssilorLuxottica, Kawasaki, and others seeking relief from tariffs they claim are illegal. The Supreme Court is expected to rule on tariff legality next year.

ShipHero crushes Black Friday/Cyber Monday, processing 1.6 million orders during Black Friday and 1.2 million shipments on Cyber Monday.

Wing and Walmart launch drone delivery in Metro Atlanta Beginning December 3, six Walmart stores across Metro Atlanta will offer ultra-fast drone delivery for grocery items, gifts, household goods, and over-the-counter medicine. Wing can turn a 20-minute drive into a five-minute flight. The service represents Wing's first new major metro in its historic expansion with Walmart, with plans to serve 100 additional Walmart stores across the U.S. by 2026.

FreightSuite raises $4.5M to automate freight forwarding The London-based tech company raised pre-series A funding led by Superseed Ventures to dismantle manual inefficiencies in global freight. While the freight sector is expected to reach $23 trillion by 2035, it remains shackled by legacy TMS systems requiring heavy human intervention. FreightSuite delivers fully automated, end-to-end forwarding to drive marginal operational costs to near zero.

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