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Picture Santa's logistics nightmare but with a few surprise gifts in his sleigh. While UPS and FedEx are playing Scrooge with hefty new fees on bulky packages for 2025, and USPS is quietly lowering delivery expectations under Congress's watchful eye, some corners of the shipping world are spreading holiday cheer. DHL's Miami hub is dancing to a merry tune with rising Latin American volumes, even as President-elect Trump stands firm in his tariff tussle with corporate America. The plot thickens at the ports, where Trump's backing of dockworkers against automation has carriers rethinking their strategies. Worldwide Express finds itself defending against hacking allegations, and Canada Post's strike has shippers hunting for alternate chimneys — but like any good holiday story, these challenges are bringing out creative solutions across the industry.
Your oversized packages will soon carry an oversized price tag. Starting December 23rd for UPS and January 6th, 2025, for FedEx, shipping large items will hit wallets harder than ever — with both carriers doubling their large package surcharges over the past five years. Businesses moving bulky goods from furniture to sports equipment face steep new costs that dwarf the standard rate hikes.
FedEx and UPS maintain a stranglehold on large-item shipping, with few competitors willing to handle the big stuff. Making matters worse, these packages resist efficient movement through standard networks. UPS recently slapped a 40-pound minimum billable weight on dimension-based handling fees, punishing even lightweight but large items like molding or trimming. Meanwhile, FedEx watches from the sidelines, potentially hoping to scoop up frustrated UPS customers.
Smart businesses can dodge some pain through strategic changes. Cutting excess packaging space and ditching those packing peanuts makes a real difference. For truly massive items, consider jumping ship to less-than-truckload shipping — especially when facing UPS's new $1,325 over-maximum limits surcharge. Look at ground shipping for shorter distances, too — Zone 2 ground often matches air service speeds at a fraction of the cost, offering a practical workaround to these mounting fees.
Mail delivery standards? The U.S. Postal Service dropped a bombshell by slashing its delivery targets to 80% for fiscal year 2025 — a stark decline from its previous 90%+ benchmark. The timing couldn't be worse for Postmaster General Louis DeJoy, who got grilled by Congress over his ironically named "Delivering for America" plan that's delivering more excuses than results.
During a recent House oversight hearing, congressional frustration hit new highs, where Rep. James Comer (R-Ky.) colorfully noted he "can't go to the bathroom without a senator or representative stopping me and giving me a postal horror story." The reduced targets particularly sting for First-Class Flats, plummeting from 90% to 80%, while Presort First-Class letters dropped from 95% to 94% for overnight delivery.
When confronted about lowering standards instead of improving performance, DeJoy defended his strategy with remarkable, if not ridiculous, confidence. Rep. Jamie Raskin (D-Md.) called out the move as equivalent to lowering grading standards for poor performers rather than helping them improve. DeJoy's response? He'd give himself "a good grade" — despite falling short of his own 10-year plan's goal of 95% on-time delivery across all services. While he claims the USPS is making progress through reduced transportation costs and increased revenue competing with FedEx and UPS, his optimism faces skepticism from both sides of the aisle.
DHL Express's Miami International Airport hub buzzes with peak season energy right now, processing 70,000 packages daily through a massive operation that connects three continents. While USPS keeps lowering delivery standards, DHL's Latin American volumes will surge 4-5% this holiday season compared to U.S. growth of just 1%, proving some carriers can actually meet their delivery promises.
The numbers speak volumes: 14 DHL planes lift off daily from Miami, plus space on 17 commercial flights extends the network's reach. The hub processes up to 70,000 pieces every day, with 60% moving through during evening hours after Hong Kong and Europe flights land. Between Cyber Monday and December 23rd, volume spikes 40% above normal, yet packages keep moving. That's exactly how holiday logistics should work.
USPS could take notes as DHL dominates Latin America's express delivery scene. Mom-and-pop shops and growing businesses have fueled DHL's rise to capturing 75% of Peru's express market and 50% across Colombia and Chile. Mexico's holiday rush promises a 10-15% volume surge, while Central America expects to handle 20-25% more packages than usual. The Miami-to-São Paulo route runs so hot that planes fly 90% full. DHL backs up its commitment with cold hard cash — pouring $5.3 million into São Paulo operations and $100 million into Mexican automation.
Corporate leaders are learning a tough lesson: When Donald Trump threatens tariffs, he means business. Despite a full-court press from executives hoping to water down his aggressive trade plans, the president-elect refuses to change course — leaving America's business elite wondering how to protect their bottom lines from trade war fallout.
Trump's late-night social media salvos pack a punch: 25% tariffs on Canada and Mexico, an extra 10% levy on Chinese goods, and a whopping 100% tariff threat against BRICS nations. His campaign promise of 20% across-the-board import taxes looms large too. Each announcement sends executives scrambling, yet Trump's inner circle gets little warning before these bombshells drop. Even Secretary of State pick Marco Rubio and Treasury nominee Scott Bessent often learn about major policy shifts alongside everyone else on Truth Social.
The corporate playbook for influencing presidents looks outdated against Trump's solo decision-making style. Companies like LG Electronics and GlobalFoundries hired powerful lobbying firms, while Constellation Brands (producer of Corona and Modelo) brought in Republican consultants to protect their Mexican beer imports. But Trump's team delivers a blunt message to these corporate envoys: The president-elect won't back down. For CEOs like H.O. Woltz III of Insteel Industries, who watched steel tariffs drive raw material costs "to the highest level in the world" during Trump's first term, the forecast looks especially stormy.
Beyond rattling CEOs with tariff threats, Donald Trump unleashes another earthquake on corporate America by unequivocally supporting the International Longshoremen's Association (ILA) in their labor dispute against the United States Maritime Alliance (USMX).
Trump held nothing back on Truth Social, declaring automation savings "nowhere near the distress, hurt and harm for American workers." The message landed like a torpedo on shipping executives already reeling from October's three-day strike — their first since the 1970s. Maritime insiders predict the United States Maritime Alliance will fold completely, abandoning its push for automated ports. "Game over for carriers," one source tells the Journal of Commerce, suggesting companies should "give [the union] what they want and then fight another day."
Yet some carriers smell blood in the water ahead of the January 15 contract deadline. Their calculation? Let the ILA strike. These companies learned during recent disruptions that cargo chaos drives up freight rates — making them profits even during shutdowns. They're gambling that union demands might soften by January 20, Trump's inauguration day, when both sides feel maximum pressure. However, the truth is they're playing with fire — U.S. ports already charge the world's highest handling fees, and carriers can't pass these costs to customers as they do everywhere else. Your move, Trump.
When a business partnership goes sour, things can get messy. Just ask Worldwide Express, the fourth-largest freight broker in the US, which landed in hot water after its former partner accused it of digital shenanigans and customer poaching. But Worldwide Express isn't taking these accusations lying down.
The plot thickens with Florida-based Freight Essentials claiming they got shortchanged on their $60 million revenue-sharing deal. According to their lawsuit, GlobalTranz (Worldwide's subsidiary) allegedly cooked up some creative math with fuel and insurance fees, skimming 15% to 30% off the top. But that's just the appetizer in this corporate food fight.
Things really went off the rails when, according to the lawsuit, someone at GlobalTranz allegedly pulled a fast one by hacking CEO Dylan Admire's account, changing his password, and locking him out of his own system. The lawsuit paints a picture of corporate espionage from a tech thriller, with accusations of fake domains booking phantom loads and submitting bogus rate confirmations. Worldwide Express's response? A straightforward "baseless accusations" with a side of "see you in court" were delivered by VP of Marketing Strategy Alison Smith. The drama continues as Freight Essentials pushes for damages and wants to slam the brakes on Worldwide's business development company partnerships.
Canada Post workers have remained off the job since November 15, and fresh negotiations between the carrier and its 55,000-member union have yielded mixed signals. Union president Jan Simpson reported movement on both sides' demands in a December 4 update, yet the union voiced frustration over Canada Post's latest proposal, according to the Toronto Star — suggesting a resolution might not arrive in time for Christmas.
Canada Post claims substantial progress toward bridging gaps on weekend delivery, pensions, and wages. Meanwhile, the union pushes for inflation-adjusted pay and improved safety conditions. Despite renewed talks last week, the two sides still show little sign of reaching common ground as millions of packages remain frozen in postal limbo during retail's busiest season.
The strike's impact spreads far beyond Canada Post facilities. Alternative carriers buckle under diverted volume — UPS temporarily froze new shipments, Purolator limited pickups, and FedEx capped retail drop-offs at five packages. Meanwhile, delivery performance in Canada dropped 14% since late October, and the Canadian Federation of Independent Business tallied $1 billion in losses for small companies through December 4. Once the strike ends, experts predict another 10-day delay while Canada Post tackles its backlog and pushes holiday deliveries deeper into winter.
Just when you thought shipping couldn't get spicier, 2025 is readying to serve up a feast of drama — FedEx and UPS playing pricing pinball with your parcels, postal workers giving Congress heartburn, Trump doing the tariff tango, and Canada Post workers remaining on the picket lines. But there's a silver lining for you: while everyone else stresses over freight bills and mystery charges, you can turn to freight auditing, parcel audit software, and other cutting-edge solutions. And that’s exactly where we come in at Intelligent Audit:
Get started with Intelligent Audit, and learn how 25 years of supply chain innovation can transform your operations today.
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