Transcripts
Hello, and welcome to another episode of Unboxing the Trends.
Speaker:I'm your host, Tim Ranagan, and I have with me again today, our host of the
Speaker:Unboxing Logistics podcast, Lori Boyer.
Speaker:Lori, how are you doing today?
Speaker:Oh, I am doing so good, Tim.
Speaker:So good.
Speaker:Well, Lori, I'm excited to jump into our discussion today.
Speaker:We have some really interesting news coming out of USPS.
Speaker:It looks like they are introducing their first ever fuel surcharge.
Speaker:I'm really interested to get your take on this.
Speaker:So go ahead and tell us what you know about this first ever charge from
Speaker:the United States Postal Service.
Speaker:Tim it's, it's a big deal.
Speaker:I mean.
Speaker:They've never had a fuel surcharge before, ever.
Speaker:So I don't think any of our viewers out there are gonna be excited.
Speaker:More surcharges.
Speaker:We're seeing that across the board.
Speaker:We're seeing huge numbers of surcharges in general.
Speaker:Costs are up, and that goes for carriers as well.
Speaker:Obviously we know what the situation in the Middle East, we've got, you
Speaker:know, fuel, fuel prices rising as well.
Speaker:But I do think it's, this is kind of a big signal.
Speaker:Just with all of the different rising costs they say it's a
Speaker:temporary adjustment, you know, to, to match market conditions.
Speaker:And I hope it is.
Speaker:But I, I guess I just wouldn't be surprised to see a few more surcharges.
Speaker:It's always been, USPS has always been our sort of predictable low cost model.
Speaker:The past, I feel like they've always sort of absorbed the volatility rather
Speaker:than kind of passing it on like other, you know, for-profit carriers have.
Speaker:But we're at the point where they're really struggling with those costs.
Speaker:So we are seeing some more of those costs being carried over
Speaker:to the shippers in general.
Speaker:And so I wouldn't be surprised to see that continue, sadly.
Speaker:That's interesting.
Speaker:I'm curious, do you think that some of the other major carriers will follow suit?
Speaker:Have you read anything about that?
Speaker:I mean, they all have big fuel surcharges already, but we're
Speaker:definitely seeing rising numbers in surcharges into 2026 so far.
Speaker:Interesting.
Speaker:Across the board for all the major carriers.
Speaker:We're seeing a big rise.
Speaker:And I think some of it isn't just fuel, but a lot of the other charges.
Speaker:All of you shippers now, I hear it from you all the time.
Speaker:Surprising charges that come out, sort of ticky tacky here and there.
Speaker:Things that pop up.
Speaker:And so I think because costs are not just high, but they are dynamic, like
Speaker:they're kind of shifting a lot with different geopolitical and economic
Speaker:issues that surcharges are con, continue to be a big pain point for
Speaker:our, most of our, our audience here.
Speaker:For any of our listeners out there, this is, it's always a good time to reach
Speaker:out to your reps at these carriers.
Speaker:If you use it like a shipping aggregate, like EasyPost, reach out to your
Speaker:customer success rep. It's, it's good to, these are some of the windfalls
Speaker:that happen when economics kind of come into play with shipping and logistics.
Speaker:So it's always good to reach out to your account managers, account reps,
Speaker:customer success reps, and see how these potential changes could affect your
Speaker:bottom line, your shipping and logistics, the pricing on your, on your labels.
Speaker:And so it's good to know that before we head down into peak
Speaker:season, towards the end of the year.
Speaker:Oh my word, we're gonna talk peak already.
Speaker:Holy cow.
Speaker:I guess it's April.
Speaker:You are, you are absolutely right.
Speaker:Keep an eye on those costs is gonna be super, super critical this year.
Speaker:Yeah, it always is.
Speaker:But I just think this year even more than ever.
Speaker:So next question, Lori, we're gonna jump over to FedEx, the FedEx side of things.
Speaker:They just launched a same day service with two hour delivery
Speaker:windows, which seems incredible.
Speaker:Are we.
Speaker:Are we really, so I know Amazon has done this a little bit with same
Speaker:day delivery in, in certain cities.
Speaker:Are, are we really heading towards this as kind of the new
Speaker:norm for shipping and logistics?
Speaker:It seems like with a, a major carrier announcing a service level like this,
Speaker:maybe some of 'em are gonna follow suit.
Speaker:What does that mean for the industry?
Speaker:Great, great question, Tim.
Speaker:This is one that I'm actually a little bit passionate about
Speaker:for you shippers out there.
Speaker:So yes, FedEx did just announce that they have say day, same day service within a
Speaker:two hour delivery window, which is great.
Speaker:I think what you were referring to as well, I think it was a week or two ago,
Speaker:Amazon announced that they have one hour and three hour delivery, which is amazing.
Speaker:So you could order something and get it within one to three
Speaker:hours in a lot of the city.
Speaker:What we are seeing though, is that push a little bit to faster
Speaker:and faster and faster service.
Speaker:But, this is a big but.
Speaker:I do not think that that necessarily means you need to change your shipping approach.
Speaker:Okay, so just because the big players are doing it, and now if you have access
Speaker:to it, if you're using FedEx, if you're using some of the Amazon shipping
Speaker:carriers who offer that, it's okay.
Speaker:But this is a big player thing.
Speaker:And I feel like maybe if you're a smaller shipper or even a medium sized
Speaker:shipper, if you're thinking, oh, I gotta keep up, I gotta keep up, it may end up
Speaker:being way more money than is worth it.
Speaker:Because we're also seeing data, Tim, that customers are not necessarily
Speaker:pushing speed as much as we sometimes think, when it comes to reliability.
Speaker:So almost more than anything, they're wanting to know exactly when
Speaker:they're gonna receive their packages.
Speaker:Don't get me wrong, we all like stuff fast.
Speaker:I'm not saying that there aren't people who like things fast.
Speaker:But just I guess do an a deep dive into your particular customer base.
Speaker:And make sure that that speed is what they really want.
Speaker:And maybe what they're willing to pay for it.
Speaker:If, Amazon's actually charging for this, which I think is really interesting.
Speaker:So you'll have to pay.
Speaker:So I think if you're a Prime member, you have to pay $10 to get the delivery.
Speaker:It's expensive to get things really, really fast.
Speaker:So a lot of brands don't have the margins the order density or maybe.
Speaker:Yeah.
Speaker:Obviously the infrastructure, you know, things like that for a two hour delivery.
Speaker:And as well, even same day delivery.
Speaker:So, I guess my thought is don't try to necessarily do it just 'cause Amazon,
Speaker:FedEx, just because they're offering those kind of things doesn't necessarily mean
Speaker:that that's what your customers want.
Speaker:Yeah, that's great advice, Lori.
Speaker:Well, let's, let's switch gears over to Amazon a little bit.
Speaker:Right.
Speaker:It seems like some of the changes maybe that FedEx are, are, are implementing,
Speaker:are more for larger cities, more densely populated areas, but Amazon we're seeing
Speaker:them expand a faster delivery model into rural areas, which seems very fascinating.
Speaker:What, what is, what are they really doing here?
Speaker:What's going on with Amazon shipping in these rural destinations?
Speaker:Yeah, so rural's interesting.
Speaker:You know, it is, as almost everyone knows, the hardest, the
Speaker:most expensive part of an it.
Speaker:It's why carriers have always kind of leaned toward the USPS
Speaker:to kind of handle these areas.
Speaker:Amazon is attacking this.
Speaker:And Amazon's attacking hard.
Speaker:They're investing in 2026, $4 billion to their rural delivery network.
Speaker:They wanna triple the size of it, and they want to add at least 4,000
Speaker:towns and communities across the US.
Speaker:So they're going big for the rural area.
Speaker:It's, again, I think it's not even just about fast delivery, but it's
Speaker:about just demand in places that maybe have been underserved in the past.
Speaker:I know they're opening some new, I was talking to someone recently who talked
Speaker:about some new last mile facilities.
Speaker:They're using AI more and more and more to get their inventory
Speaker:closer to their customers.
Speaker:Yeah, they're doing a huge amount.
Speaker:Amazon has always been the leader kind of in industry cutting through things.
Speaker:And in this case it is interesting as the USPS is struggling a little bit
Speaker:to see Amazon stepping up and kind of diving, dipping their toes into it there.
Speaker:So yeah, we're, we're seeing a lot more in the rural area with Amazon.
Speaker:And Amazon shipping in general has just, Amazon Shipping as a carrier has become
Speaker:really a really interesting take as well.
Speaker:And, and maybe we can talk about that, but Amazon shipping as a carrier is slightly
Speaker:different than just Amazon themselves.
Speaker:For sure.
Speaker:That's that's interesting to note.
Speaker:You know, it seems like you, you wonder what kind of impact this may have on
Speaker:some of the regional carriers, right?
Speaker:Where those were the resources to reach into some of these
Speaker:more rural destinations.
Speaker:It's interesting to see a nationwide carrier kind of dipping their toes into
Speaker:making rural deliveries a possibility.
Speaker:So interesting to see.
Speaker:Really, really fun times in the industry.
Speaker:Really interesting.
Speaker:Yeah, for sure.
Speaker:Lots of carrier stuff going on.
Speaker:Yeah.
Speaker:Okay.
Speaker:Well, we're gonna jump over.
Speaker:I've got a question for you.
Speaker:We've, we've seen a lot of kind of EasyPost users, they're starting to move
Speaker:their volume over to Amazon Shipping.
Speaker:Right.
Speaker:We talked a little bit about some things that Amazon is doing to
Speaker:diversify their, their offering, right?
Speaker:Their delivery offerings to their customers.
Speaker:What are you seeing here with this kind of shift away from maybe some of these
Speaker:traditional big four carriers to a solution, a carrier solution like Amazon?
Speaker:Yeah, so Amazon Shipping, for those of you who don't know, is Amazon's
Speaker:carrier arm of their company.
Speaker:So Amazon, of course, has their own shipping, but they've opened it up to
Speaker:ecommerce and other shippers who want to kind of tap into that infrastructure and
Speaker:let people use that and, and as a carrier.
Speaker:So as you kind of mentioned, they've been sort of almost like a, one of our regional
Speaker:carriers, they've been kind of smaller.
Speaker:They're definitely not promoting themselves as a, we're gonna ship
Speaker:everything, but in certain lanes and for certain products and in
Speaker:certain areas, Amazon Shipping is an option in your multi-carrier mix.
Speaker:You know, if you, if you talk with me too long, you'll know
Speaker:how much I am passionate about having a good, strong risk strategy
Speaker:around having multiple carriers.
Speaker:And Amazon shipping launched, I think maybe 18 months ago now, Tim.
Speaker:And they, we're seeing a lot.
Speaker:I think you mentioned our customers specifically.
Speaker:We're seeing a lot of movement to Amazon Shipping.
Speaker:Brands are actively testing it out.
Speaker:What's one of the interesting things and where a lot of our volume here at EasyPost
Speaker:is getting driven to Amazon shipping is because of our Luma AI product.
Speaker:Our Luma AI can go in and what it does is it compares all of the carriers
Speaker:across, you know, lanes, across speed, when do you wanna have it there?
Speaker:All of those different things.
Speaker:And we'll tell you what is the best option for you based on what you need.
Speaker:So if you're looking for the most affordable option, or if you're
Speaker:looking for the most, you know, the fastest service or the most reliable
Speaker:or whatever you want Luma AI has taken billions of shipments and compared and,
Speaker:and crossed examined so that people can see what would be their option.
Speaker:This is where our push towards Amazon shipping, where we're
Speaker:seeing that with customers.
Speaker:In our data, that's what the data is showing that a lot of times Amazon
Speaker:Shipping is is the best option.
Speaker:It's strong.
Speaker:Amazon's network is strong.
Speaker:It's hard to ignore.
Speaker:So, yeah, I think that it's just the data, data data shows that Amazon
Speaker:Shipping is becoming a really big player in the carrier industry, and
Speaker:boy, within 18 months it's really fast.
Speaker:Yeah.
Speaker:That's fascinating.
Speaker:Well, Lori, this is, you've talked about, about some really interesting things
Speaker:with carriers, almost from top to bottom.
Speaker:Touching on USPS, FedEx, Amazon Shipping.
Speaker:I, I'm curious if you have any final thoughts, if anything kind of stuck out
Speaker:to you over the last maybe 30 days or so that's happening in our industry that you
Speaker:think our listeners should know about?
Speaker:Yeah, I do.
Speaker:I, we are here talking carriers a lot today and because there have
Speaker:been different carrier news and I'm getting a lot of questions
Speaker:about using multiple carriers.
Speaker:The best way, the best timing, and I think for me, if it were me and I was
Speaker:shipping here in the next 30 days, and even moving forward, I wouldn't
Speaker:be paying attention a lot to what is happening with one specific carrier.
Speaker:I would be more worried about how am I making my decisions around carriers.
Speaker:That's what I see breaking.
Speaker:I see that people have, they may be keeping an eye on things, but
Speaker:unless you are actively trying to figure out and, and make the right
Speaker:decisions, you're gonna be behind.
Speaker:And I, the industry is just crazy.
Speaker:I mean, it's always crazy, but right now we are seeing so many fluctuations and
Speaker:shifts that it feels like the news one day can be completely different the next day.
Speaker:And I think right now it's more important than ever that you are using tools, that
Speaker:you're doing things to help make sure that you, that you just have good visibility
Speaker:into what's happening with your carriers.
Speaker:So for me that's a how, ask yourself, am I making good decisions?
Speaker:Do I know if I'm making good decisions?
Speaker:Do I know if I'm overpaying?
Speaker:Can I change volume quickly?
Speaker:Ask yourself those questions, and if you don't have the right answers to
Speaker:them, then you need to start looking.
Speaker:There's technology, there are solutions.
Speaker:Of course, there's EasyPost, I love EasyPost, and there's others as well.
Speaker:So just don't leave yourself in a place where you're needing
Speaker:to make decisions manually.
Speaker:That's great advice, Lori.
Speaker:The theme of this episode is, do you know if your carrier
Speaker:mix is going to work for you?
Speaker:So love that.
Speaker:Lori, thank you so much for all of your thoughts and comments on today's episode.
Speaker:For all of our listeners out there, this has been another
Speaker:episode of Unboxing the Trends.
Speaker:If you would like to view all of our previous episodes, you can
Speaker:do so at EasyPost.com/podcast.
Speaker:We'd also love to hear any comments you might have, so please drop a
Speaker:comment down in the thread below.
Speaker:Until next time, we'll see you in the next one.
Speaker:Thanks.
Speaker:Happy shipping everybody.
