Trump targets countries supplying oil to Cuba with potential tariffs: A new executive order authorizes cabinet officials to recommend discretionary tariffs on nations selling crude oil or petroleum products to Cuba, framing trade penalties as a national security and foreign policy tool.
DOT launches inquiry into hazmat risks of electric trucks: The Pipeline and Hazardous Materials Safety Administration issued a request for information comparing safety risks of battery-electric versus diesel trucks hauling hazardous materials, focusing on fire behavior, vehicle weight, electronic interference and charging infrastructure.
New FMC chair signals stronger focus on geopolitical shipping risks: Chairman Laura DiBella said the Federal Maritime Commission will increasingly scrutinize chokepoints, shadow tanker fleets and foreign port actions, expanding its role beyond traditional commercial shipping disputes.
Carrier Outlook & Updates
UPS plans deeper network cuts and Amazon pullback to lift 2026 profitability: UPS will eliminate 30,000 frontline jobs and close at least 24 facilities as it reduces Amazon volumes by more than 50% by mid-2026, betting that automation, higher-yield B2B traffic and a smaller footprint will support margin expansion in the second half of the year.
UPS supply chain business pressured by trade shifts and expects weak start to 2026: Fourth-quarter supply chain revenue fell 12.7% as air and ocean rates declined and China-to-U.S. volumes dropped, with management warning of extreme weakness in international flows early in 2026 before tariff and de minimis effects ease later in the year.
FedEx Freight outlines density-focused strategy ahead of June spinoff: In securities filings, FedEx Freight emphasized door count rather than terminal count as the key measure of network capacity, highlighting a 26,000-door footprint concentrated around roughly 65% of industry freight volume.
ONE reports quarterly loss as container volumes and rates weaken: Ocean Network Express posted an $88 million loss as Asia-North America and Asia-Europe volumes softened and spot rates declined, though the carrier expects improvement as capacity is managed and Red Sea diversions continue.
Union Pacific to refile revised Norfolk Southern merger application within weeks: Union Pacific said it is addressing Surface Transportation Board concerns that its initial $85 billion merger filing lacked sufficient detail on future growth assumptions and plans to handle added intermodal volume, and expects to submit a revised application as early as March while still targeting a first-half 2027 closing.
Parcel Logistics
UPS retires MD-11 fleet following fatal crash and accelerates shift to 767s: The permanent grounding of MD-11 aircraft, which previously represented about 9% of UPS’ air fleet, resulted in a $137 million non-cash charge and higher lease costs, with capacity to be replaced by 18 Boeing 767s through 2027.
Amazon appears to be testing shipper demand for a standalone LTL service: Morgan Stanley reports Amazon has begun selectively reaching out to shippers ahead of a potential June or July launch of an LTL network with roughly 26 terminals, a move analysts say could be highly disruptive if scaled.
Canada Post finalizes tentative labor agreement with letter carriers: Canada Post and the Canadian Union of Postal Workers completed final contract language covering wages, benefits and weekend parcel delivery, setting the stage for a membership ratification vote after prolonged labor unrest.
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