Parcel July/August 2026

MATERIAL HANDLING SOLUTIONS SHOWCASE PAGE 13

JULY-AUGUST 2026

PARCELindustry.com

FROM REACTIVE TO READY: USING DATA ANALYTICS TO MANAGE AN EARLIER PEAK SEASON.

HAS AMAZON FINALLY ARRIVED AS A VIABLE CARRIER OPTION? PAGE 08

UNDERSTANDING CUSTOMER EXPECTATIONS AND DELIVERY PERSONAS IN TODAY’S MARKET. PAGE 20

DON’T OVERLOOK THE IMPORTANCE OF THE MIDDLE MILE. PAGE 24

PAGE 18

O T E E R E IB H R K C C I CL SUBS

CONTENTS ///

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Volume 33 | Issue 4

16 06 EDITOR’S NOTE Preparing for Peak

By Amanda Armendariz

07 PARCEL COUNSEL Parcel Shippers and the United States Supreme Court

By Brent Wm. Primus and Andrew M. Danas

08 SUPPLY CHAIN SUCCESS Viable Carrier Option: Has Amazon Finally Arrived?

By Jena Cardenti

10 INDUSTRY INSIGHT What Makes a Parcel Contract "Good" in Today's Market?

By Keegan Leisz

12 REVERSE LOGISTICS The Importance of Packaging in Reverse Logistics Operations

By Tony Sciarrotta

14 PACKAGING Megatrends Poised to Reshape North American Packaging From Two Sides North America 4 PARCELindustry.com  JULY-AUGUST 2026

20 22 26 16 HOW RFID IS REWRITING THE RULES OF PARCEL VISIBILITY

By Rusty Redecker

18 FROM REACTIVE TO READY: USING DATA ANALYTICS TO MANAGE AN EARLIER PEAK SEASON

By Emily Gallo

20 UNDERSTANDING CUSTOMER DELIVERY EXPECTATIONS IN 2026

By Johannes Panzer

22 WHY YOUR ADDRESS DATA IS COSTING YOU MORE THAN YOU THINK — FROM FIRST MILE TO LAST

By Vaibhav Mishra

24 THE MIDDLE MILE IS WHERE SUPPLY CHAIN RESILIENCE IS WON OR LOST

By Carlos Barbosa

26 BEYOND COST: DESIGNING AN E-COMMERCE NETWORK THAT PERFORMS

By Sam Sealey

28 PEAK SEASON PLANNING STARTS NOW: 7 QUESTIONS TO ASK BEFORE PEAK SEASON ARRIVES

By Gerryann Agovino

30 PCC CORNER Why Attending PCC Week 2026 Matters to Mailing and Shipping Industry Professionals

By Jeffrey D. Hilliard Jr.

SPONSORED CONTENT 13 MATERIAL HANDLING SOLUTIONS SHOWCASE

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JULY-AUGUST 2026  PARCELindustry.com 5

EDITOR’SNOTE

PREPARING FOR PEAK

By Amanda Armendariz

F

or many shippers, it seems like peak season occurs earlier and earlier each year. (In fact, for some shippers, it feels like peak season is now a year-round occurrence!) Whichever category you fall into, it’s still likely that late summer is the start of one of the busiest times of the year.

Hopefully you took stock of last year’s peak season’s successes and failures back in January, so you could make note of what went well and what needed to be changed ahead of peak 2026. Much of your peak season

6 PARCELindustry.com  JULY-AUGUST 2026

planning is likely already underway, but if it’s not, that’s ok; this issue has you covered. We take a look at the role prescriptive and predictive analytics should play in your peak season planning, as well as seven questions you should be asking of your operation ahead of this busy time. The parcel shipping sector is already in flux, with constant changes, regulations, and tariff decisions impacting shippers on an unpredictable basis, and peak season will be no different. It’s crucial that shippers take control of whatever they can to mitigate

any surprises that may pop up during this busy time.

And speaking of planning, mark your calendars for PARCEL Forum in Orlando, September 14-16. You won’t want to miss the chance to attend sessions, networking events, and keynote speeches with your fellow logistics professionals. Sharing ideas with others in your field is one of the best ways to stay on top of things, so we hope to see you there.

As always, thanks for reading PARCEL.

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PARCELCOUNSEL

PARCEL SHIPPERS AND THE UNITED STATES SUPREME COURT

By Brent Wm. Primus and Andrew M. Danas

A

s we write this installment of PARCEL Counsel in early July, the transportation community is all abuzz about the unanimous opinion issued on May 14, 2026 by the United States Supreme Court in Montgomery v. Caribe Transport II. This begs the question as to what is the significance of this decision for a parcel shipper?

The decision resolved a split among the federal circuit courts regarding the scope of federal preemption of state laws under the Federal Aviation Administration Authorization Act (FAAAA) and whether state law negligent hiring claims against motor carrier property brokers are preempted when the allegations concern a broker’s failure to use reasonable care in selecting a motor carrier involved in an accident that injures a third party. In such circumstances, the Court held that the FAAAA does not bar such claims and brokers may be sued under state law for negligent selection of carriers.

Despite industry commentary suggesting that Montgomery creates a new legal standard or expands broker liability, the decision does not break new ground.

Shippers, as well as brokers, have faced negligent hiring claims for more than twenty years, beginning with Schramm v. Foster in 2004.

Analyzing the technical legal question before the Court assists in understanding the implications of the Montgomery decision. The FAAAA broadly prohibits states from enforcing

laws “related to a price, route, or service” of a motor carrier or broker. At the same time, the statute preserves “the safety regulatory authority of a State with respect to motor vehicles.”

In Montgomery the claim before the Supreme Court — that the plaintiff had been injured in a trucking accident due to the broker’s alleged negligent hiring of a motor carrier with a conditional FMCSA safety rating — concerned the safe operation of motor vehicles.

Accordingly, such state law claims are not preempted.

Defining “reasonable care” in selecting a motor carrier is fact specific and evolving.

Approximately 17% of motor carriers hold a safety fitness rating of satisfactory, conditional, or unsatisfactory. The remaining 83% are unrated (source: Carrier411.com).

Shippers hiring “unrated” carriers face challenges due to the absence of a comprehensive federal framework for evaluating them. See “The CSA/Schramm Problem — Part I: A Complex Situation” (March/April 2012 issue of PARCEL) and “Part II” (May/ June, 2012). Since the federal government determines safety fitness and authorizes the operations of motor carriers, shippers and brokers have reasonable grounds to believe that it is the obligation of the government, not the shipper or broker hiring the carrier, to determine its operational fitness.

Until clearer federal standards emerge — whether

through regulation or legislation — parcel shippers and brokers should proactively review and strengthen their carrier vetting procedures.

This includes aligning internal policies with insurer expectations; understanding coverage limitations; and ensuring that vetting practices are consistently applied and have an auditable record showing how the carrier was selected at the time it was engaged.

Robust vetting programs will help mitigate exposure to negligent hiring claims in the post-Montgomery environment.

All for now!

Brent Wm. Primus, J.D., is the CEO of Primus Law Office, P.A., the Senior Editor of transportlawtexts, inc., and Director of Virtual Education for the Transportation and Logistics Council, Inc. Andrew M. Danas is a Partner, Grove, Jaskiewicz and Cobert, LLP, Washington, D.C. Visit www.gjcobert.com or email adanas@danaslaw.com for more information. The information contained in this article is intended to be general background information. It does not constitute and should not be relied upon as legal advice. Readers should contact a qualified attorney should they have a specific legal question.

Previous columns, including those of William J. Augello, may be found on PARCELindustry.com.

Your questions are welcome at brent@primuslawoffice.com

JULY-AUGUST 2026  PARCELindustry.com 7

SUPPLYCHAINSUCCESS

VIABLE CARRIER OPTION: HAS AMAZON FINALLY ARRIVED?

By Jena Cardenti

F

or years, Amazon has hovered on the edge of the parcel carrier conversation. While the company built one of the largest transportation networks in North America, its logistics services for external shippers struggled to gain meaningful traction. Pricing was often viewed as uncompetitive, service offerings were limited, and many businesses remained reluctant to entrust a major retailer with their shipping operations. As a result, most shippers continued to rely on established providers such as UPS and FedEx despite Amazon's growing logistics footprint.

After years of building out its logistics network, Amazon is now taking the next step. By offering warehousing, transportation, and fulfillment services to businesses outside its marketplace, the company is positioning itself to compete more directly with traditional logistics providers for shipper freight.

Amazon's Evolution into Logistics Amazon's journey from online bookstore to logistics powerhouse has been one of the most significant supply chain transformations of the past two decades. What began as an effort to improve delivery speed for its retail business has evolved into a network that spans fulfillment, transportation, parcel delivery, air cargo, ocean freight, and LTL transportation.

Amazon has steadily invested in building capabilities that traditionally belonged to carriers and third-party logistics providers. The company expanded its fulfillment footprint, launched Amazon Air, built a nationwide delivery station network, created the Delivery Service Partner (DSP) program, and invested heavily in trucking

8 PARCELindustry.com  JULY-AUGUST 2026

and logistics technology.

The next logical step is opening that network to other businesses. With much of the infrastructure already in place, offering logistics services to external customers helps the company make better use of its network while creating a new source of revenue.

Services Offered What started as a network built to support Amazon's retail business has evolved into a broad portfolio of logistics services.

Warehousing and Distribution Amazon provides warehousing, inventory management, fulfillment, and distribution through its extensive network.

Businesses can store inventory closer to demand and fulfill orders across websites, marketplaces, social media channels, and physical stores from a single inventory pool.

Advanced forecasting helps improve delivery speed and accuracy.

Parcel Delivery Amazon Shipping provides parcel delivery services for merchants selling both on and off Amazon's marketplace.

Amazon is committed to flexible pickup that is available seven days a week with a two-to-five-day transit time.

Since Amazon has such a wide, established network, they are able to pick up in rural and hard-to-reach areas.

Customers will be able to track shipments from label creation

to customer doorsteps with GPS power tracking.

New LTL Offering Amazon now offers LTL transportation as part of its end-to-end supply chain services. Supported by a network of more than 80,000 trailers and 24,000 intermodal containers, the service is available to businesses shipping palletized freight to any destination. Shippers can access a shared drop trailer pool across FTL and LTL shipments, along with real-time tracking through EDI integrations and their web portal.

Potential Benefits for Shippers The emergence of Amazon as a logistics provider creates a new option for shippers seeking alternatives in an increasingly concentrated carrier market.

Cost Advantages: Amazon's enormous scale may allow it to offer competitive pricing in certain markets and shipping profiles. Companies may be able to negotiate larger discounts on fees, such as residential surcharges and demand surcharges, due to Amazon's high shipping volumes, extensive logistics network, and significant bargaining power with transportation providers.

Technology Advantages: Amazon's logistics network is powered by advanced technology, automation, and data analytics. Shippers can benefit from enhanced

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tracking, inventory visibility, and operational insights without major technology investments. Amazon Shipping also integrates with more than 30 leading third-party shipping software platforms.

Network Advantages: Amazon Shipping currently reaches approximately 95% of the US population across the contiguous United States. For businesses seeking broad geographic coverage, the network presents an increasingly viable alternative to traditional providers.

Risks and Concerns for Shippers Despite the opportunities, many shippers remain cautious about placing a significant portion of their logistics operations into Amazon's hands.

Data Privacy and Competitive Intelligence: Amazon occupies a unique position as both a logistics provider and one of the world's largest retailers. Some businesses may be uncomfortable sharing operational and shipping data with a company that could also be a competitor.

Service Prioritization: During capacity constraints, severe weather events, or demand surges, shippers will want clarity on how Amazon allocates resources across its network. Ques-

tions remain about whether Amazon's retail operations would receive priority during periods of disruption.

Peak Season Performance: Amazon's network experiences enormous demand spikes during Prime Day and the holiday season. External customers will need confidence that capacity and service levels can be maintained during these peak periods.

Final Thoughts Amazon has spent more than a decade building one of the most sophisticated logistics networks in the world. What began as a strategy to support its retail business has evolved into a transportation and

fulfillment platform that increasingly mirrors the capabilities of traditional carriers and third-party logistics providers.

The question is no longer whether Amazon can operate a logistics network at a larger scale. The more important question is whether shippers are ready to view Amazon as a true logistics partner, and whether Amazon can consistently deliver the pricing, service, and trust needed to earn a larger share of the freight market.

Jena Cardenti is Transportation Consultant, Infios.

JULY-AUGUST 2026  PARCELindustry.com 9

INDUSTRYINSIGHT

WHAT MAKES A PARCEL CONTRACT "GOOD" IN TODAY'S MARKET?

By Keegan Leisz

H

istorically, parcel contract negotiations have been judged almost entirely on one metric: projected transportation savings. Other contractual terms certainly mattered, but many procurement teams ultimately awarded business to the carrier with the lowest modeled cost.

While transportation costs remain the primary consideration, today's parcel market demands a broader definition of a successful agreement. A strong parcel contract should do three things: provide competitive pricing today, deliver predictable costs as carrier pricing evolves, and maintain the flexibility to adapt as a shipper's business changes.

Organizations that evaluate contracts through this broader lens are better positioned to realize value throughout the life of the agreement — not just on the day it's signed.

Predictability: Protecting Against Tomorrow’s Costs In today’s environment, carrier pricing doesn’t just change from year to year, it changes month to month.

As carriers continue to focus on yield management and profitability, pricing mechanisms have become increasingly dynamic rather than relying solely on annual General Rate Increases.

It used to be enough to negotiate rate caps on the base freight charges, but that’s no longer sufficient to provide year-to-year cost predictability. Carriers

10 PARCELindustry.com  JULY-AUGUST 2026

now frequently revise fuel surcharge methodologies, introduce new surcharges, increase existing surcharges mid-year, and modify the rules governing charges such as Delivery Area Surcharges, Additional Handling, and Oversize. With protections limited to base transportation rates, shippers remain exposed to many of the pricing changes that ultimately drive transportation costs.

Another area that deserves careful attention are spendbased discount structures.

While discounts contingent on spend or volume are commonplace in parcel agreements, they can be structured with significant reductions when a shipper falls below a target tier, while providing only marginal additional benefit for growth above that threshold.

In these situations, a downturn in business or changing economic conditions can quickly turn what appeared to be a competitive agreement into one that no longer delivers expected value.

As carrier pricing continues to evolve, negotiations should also evolve to include protections that extend beyond transportation discounts.

Depending on a shipper's leverage, these protections may include:  Rate caps on surcharges in addition to base freight charges.  Fuel surcharge tables frozen as of the effective date of the contract.

 Contractually defined limits for rule-based surcharges like Additional Handling and Oversize charges, rather than relying on service guide limits.  Negotiated exemptions or predefined discounts for any new surcharges introduced during the contract term.  Spend-based discount structures that remain competitive during periods of business contraction while still providing meaningful upside as volume grows.

Not all shippers will have enough leverage to incorporate all these provisions or fully insulate themselves from future cost increases.

However, every additional protection — from surcharge caps and fuel stability to predictable spend-based discount structures — helps reduce uncertainty and creates value that extends well beyond the initial discount percentages negotiated.

Business Flexibility: Planning for Change A strong parcel agreement should also be flexible enough to remain competitive as the business evolves. Many agreements are optimized around a company's current shipping profile. While that approach may maximize short-term savings, it can become problematic if the business changes over the course of a multi-year agreement.

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For example, a company that primarily ships lightweight products may focus negotiations almost exclusively on lower weight bands while placing less emphasis on pricing for heavier shipments. However, if new product lines introduce larger packages a year later, an agreement optimized for lightweight packages may no longer provide competitive pricing. Similarly, changes in packaging, dimensional weight, residential delivery mix, fulfillment strategy, or international shipping patterns can all shift which pricing components have the greatest financial impact.

The goal isn't to avoid making commitments to a primary carrier.

Rather, it's to ensure those commitments don't unintentionally eliminate future opportunities that could strengthen the transportation network.

When evaluating a parcel agreement, organizations should consider questions such as:  If the business grows or contracts, does the pricing remain competitive?  Is the agreement balanced across multiple service levels, or is it overly optimized for today's service mix?  Are import and export rates flexible enough to remain competitive if sourcing locations or customer markets change?  Will changes in package characteristics or dimensional weight materially alter the value of the agreement?

may emerge to improve service or reduce costs by strategically shifting portions of a transportation network.

To preserve that optionality, procurement teams should carefully evaluate how their primary carrier agreement handles volume commitments and incentive structures. Key questions include:  Does the agreement have a specified minimum commitment? If so, is the commitment set at a level that still allows a shipper to move some of their volume if an opportunity arises?  Will shifting a portion of shipments to another carrier cause spend-based discounts to deteriorate disproportionately?  Are rebates, rate protections, or other contractual benefits contingent upon maintaining specific shipment or revenue thresholds?

These questions may seem hypothetical during a sourcing event, but few businesses look exactly the same three years later. A well-structured agreement should continue creating value as the business evolves.

The goal isn't to avoid making commitments to a primary carrier. Rather, it's to ensure those commitments don't unintentionally eliminate future opportunities that could strengthen the transportation network.

Strategic Flexibility: Preserving Future Options Flexibility also extends beyond a company's own operations. It includes maintaining the ability to respond to changes in the carrier marketplace.

Today, shippers have access to a growing ecosystem of regional and specialized parcel carriers that can complement — or in some cases outperform — the national carriers for specific lanes, services, or geographic regions.

As these alternatives continue to expand, opportunities

A Simple Litmus Test Before signing a parcel agreement, procurement teams should ask three simple questions:  Will this agreement remain competitive if business grows, contracts, or changes over the next three years?

 Does the agreement have protections from the pricing changes carriers are most likely to make during the life of the agreement?  Can carrier strategies adapt without losing price competitiveness or triggering penalty clauses?

If the answer to any of these questions is "no," the agreement may deserve another look.

A successful parcel negotiation isn't only defined by the amount of savings on signature day. It's defined by whether the agreement continues to deliver value through changing shipment profiles, evolving carrier pricing, and the day-to-day realities of managing a transportation network. The best parcel contracts aren't simply the cheapest — they're the ones that remain competitive, predictable, and flexible long after the ink has dried.

Keegan Leisz is a Senior Project Manager in Professional Services at Intelligent Audit. He partners with enterprise shippers to uncover opportunities for logistics optimization, aligning cost reduction with service-level improvement. With a strategic, data-informed approach, Keegan helps clients navigate carrier diversification, performance challenges, and long-term transportation planning to drive meaningful operational gains.

JULY-AUGUST 2026  PARCELindustry.com 11

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REVERSELOGISTICS

THE IMPORTANCE OF PACKAGING IN REVERSE LOGISTICS OPERATIONS

By Tony Sciarrotta

M

ost packaging is designed for one-way trips, especially with single-use plastics.

However, as returns increase, protective packaging should also be addressed by retailers and brands, manufacturers, and logistics and transportation providers. Indeed, while much of the conversation surrounding returns often focuses on speed, customer convenience, and technology, protective packaging plays an equally important role in preserving product value and reducing unnecessary costs.

Without adequate protection, returned merchandise is exposed to impacts, vibration, compression, moisture, and temperature fluctuations that can cause additional damage beyond the original reason for the return. In many cases, an item that could have been resold as new or open-box becomes unsellable simply because it was inadequately packaged for the return journey.

Protective packaging is also becoming particularly important as recommerce and secondary markets continue to expand. However, these business models depend on receiving products in a condition suitable for refurbishment or resale.

Protective packaging also influences recovery rates within reverse logistics operations. Organizations’ goals are typically to maximize the percentage of returned merchandise that can be resold, refurbished, or repaired. However, traditional or single-use packaging often contributes to the 150 million tons of trash that end up in US landfills each year.

According to AirFill, a provider of packaging solutions, improving protective packaging is one of the most reliable ways to reduce damage rates for returned items. AirFill notes that acceptable damage rates vary by industry and product type, but most operations target rates below one to two percent of total shipments. Operations using inadequate void fill or cushioning often see rates significantly higher than this.

Indeed, smart packaging materials offer durability while

12 PARCELindustry.com  JULY-AUGUST 2026

reducing weight, which lowers both shipping costs and carbon emissions. Reusable or sustainable packaging is the best solution for circular returns, according to reverse logistics technology firm ReverseLogix, because it is designed to handle multiple shipments without breaking down. It also uses eco-friendly alternative packaging materials that customers trust, which help minimize and reduce waste.

Earlier this year, FedEx partnered with Returnity, a reusable packaging provider specializing in circular logistics, to enable FedEx B2B customers to switch from corrugated to reusable boxes within their supply chain without incurring the handling fees typically applied to alternative packaging formats.

“In collaboration with Returnity, we have created the first scalable, reusable box solution for B2B customers, which is especially useful for our soft-goods shippers,” said FedEx’s Senior Vice President, Global Customer Experience, Neil Gibson, in the announcement. “By pairing Returnity’s durable, easy-to-integrate packaging with our global network, we’re helping retailers unlock meaningful cost savings while reducing environmental impact, all without sacrificing speed or reliability."

Artificial Intelligence The use of artificial intelligence and data analytics also influences packaging decisions. By analyzing return data alongside damage claims, companies can identify recurring packag-

ing failures, optimize material selection, and tailor packaging solutions for specific products or transportation lanes. Rather than applying a one-size-fits-all approach, organizations should consider developing packaging strategies based on product characteristics, shipping distances, carrier handling patterns, and historical damage rates.

Customer Behavior Customer behavior is also important. When returning an item, consumers either return an item “boxless” to a UPS or FedEx store, use whatever used boxes or envelopes happen to be available around the house as packaging, or customers may place a shipping label directly on the manufacturer or retailer’s original packaging, leaving some products vulnerable to damage while also rendering the original packaging unsuitable for resale.

Providing customers with clear packaging instructions, reusable packaging, or return kits can significantly improve the condition of returned merchandise upon arrival.

As reverse logistics continues to grow in both volume and strategic importance, protective packaging should no longer be viewed as a secondary consideration. It is a critical investment that protects inventory value, improves recovery rates, supports sustainability goals, and enhances operational efficiency throughout the returns process.

Tony Sciarrotta is Executive Director of RL Solutions Group.

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PackOnTime Kern’s PackOnTime creates right-sized packaging on demand, helping parcel operations reduce empty space, packaging material, and dimensional weight costs. Instead of relying on standard box sizes, PackOnTime measures each order with 3D technology and builds a custom-fit box around the contents. The system cuts, forms, packs, seals, and labels in one automated process, operated by a single person. A control photo is captured before sealing and linked to the order for added accuracy and traceability. For operations facing rising parcel costs and tighter carrier rules, PackOnTime helps turn packaging into a smarter, more efficient process.

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EuroSort specializes in high-speed unit sortation systems designed specifically for the parcel and small-package industry. Our sorters are engineered to handle a wide range of package sizes, shapes, and weights with industry-leading accuracy and throughput. Whether you’re processing outbound shipments, returns, or last-mile deliveries, EuroSort’s sorters help reduce labor, increase sortation speed, and optimize floor space. With a compact footprint, low maintenance requirements, and seamless integration, our solutions are ideal for parcel hubs and e-commerce fulfillment centers looking to boost efficiency and stay ahead. EuroSort - Fast. Reliable. Built for Parcel.

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Hy-Tek Intralogistics is a strategic advisory and automation partner helping organizations transform complex supply chains through innovative technology and operational expertise. Serving industries including retail, e-commerce, healthcare, and beverage distribution, Hy-Tek evaluates logistics networks, facility design, inventory strategies, and automation opportunities to create scalable, resilient operations.

Through advanced modeling and data-driven analysis, the company helps clients optimize site selection, distribution strategies, and thirdparty logistics decisions. Hy-Tek's Innovation Lab bridges strategy and execution by allowing organizations to test automation technologies in real-world scenarios, reducing risk and accelerating the implementation of smarter, future-ready supply chain solutions.

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Pioneer Systems engineers and manufactures bulk material handling equipment and automated systems for the logistics and packaging industry, ensuring the timely, accurate movement of goods. Our support extends beyond the sale, including maintenance, training, and ongoing assistance backed by a two-year warranty. Equipment integrates with warehouse management and tracking software for greater visibility and control. Built around efficiency, our solutions optimize material flow, reduce handling costs and improve productivity, delivering faster, more cost-effective results for our customers.

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PACKAGING

MEGATRENDS POISED TO RESHAPE NORTH AMERICAN PACKAGING From Two Sides North America

L

ooking to the future, what lies in store for the packaging industry? The quickly changing landscape of geopolitics and trade, along with the continued growth of e-commerce and ongoing sustainability expectations, indicate that two materials will come out as clear winners — paper and flexible plastics.

That’s according to Boston Consulting Group’s (BCG) “Flexible by Design: The New Playbook for Packaging in North America.” They ran extensive quantitative modeling of product categories and packaging types to map what they see as growing megatrends. They believe packaging industry leaders will be the ones that future-proof their portfolios, build more agile and resilient supply chains, get smarter about pricing, and push sustainable innovation forward — ideally by collaborating across the value chain, not going it alone.

The Shifting Landscape of Megatrends BCG researchers identified what they call “major megatrends” — driven by long-term economic and structural shifts, they believe these shifts will be reshaping North America’s packaging industry over the next five to ten years. Together, the megatrends will ultimately change not just what packaging is made of, but how companies think about innovation. While cost and performance still matter, they no longer are the only factors in the decision. The next packaging choices will be shaped by a much more complicated mix of forces already in play, some of which may seem contradictory:  Global Trade Rules are shifting, and the packaging industry is feeling it. While tariff outcomes are still evolving, one thing is clear: their impact on global trade — and on packaging costs — will be lasting. As protectionism

14 PARCELindustry.com  JULY-AUGUST 2026

and regionalization continue to grow, companies are being forced to rethink how and where they source materials. That’s pushing many to diversify suppliers, swap out substrates, and revisit long-standing packaging choices.  Convenience and Mobility Convenience is still king for North American consumers.

Busier, more mobile lifestyles are driving demand for packaging that’s easy to use and easy to take on the go; think resealable packs, single-serve formats, and ready-to-use products.

At the same time, unit sizes are getting smaller, which often means more packaging overall, even as individual packages shrink.  E-commerce As online shopping keeps growing, packaging has to do double duty. It needs to protect products through shipping while also acting as part of the brand experience when the box shows up at the door. That’s fueling demand for packaging that’s simpler, sturdier, and more sustainable, cutting down on excess materials while still delivering a great unboxing experience.  Health and Wellness Health-conscious consumers are changing what they buy, favoring options that feel fresher and better for them. That shift is influencing packaging, too.

Formats need to preserve freshness and product integrity — especially for

food, supplements, and cosmetics — while avoiding materials that consumers associate with potential health risks, like microplastics. The result: growing demand for stronger barrier performance and safer-perceived materials.  Sustainability Sustainability continues to be a top priority for global brands. In Europe and other regions, regulation and infrastructure investments are driving rapid change.

In the US, progress is more fragmented but still gaining momentum, led by state-level legislation, rising consumer awareness, and innovation in recyclable mono-materials and bio-based composites.

Across substrates, one trend stands out: increased use of post-consumer recycled content. The real challenge for packaging players is making all of this work at scale — without sacrificing performance or blowing up costs.

Paper vs. Plastic How are these megatrends actually changing real-world packaging decisions? To find out, BCG built quantitative models across more than 350 product categories and 50 packaging formats in eight end markets. They paired that analysis with hands-on expertise in climate policy and tariff legislation to see how each trend would play out across the major packaging materials.

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The big takeaway: paper and flexible plastic come out ahead. While sustainability concerns continue to put pressure on plastic, cost and performance keeps it a strong paper competitor. For paper, the key barrier continues to be innovation; can the industry scale cost-competitive barrier technologies? If it proves doable, paper adoption could potentially accelerate, especially in food and beverage.

Zooming out to a bird’s-eye view, a few clear patterns start to emerge. The growing concern by consumers regarding microplastic pollution and plastic’s low circularity rates is a significant contributor; over time, they predict that paper will steadily take shares from plastic.

Regulation adds another layer of complexity. North America and Europe are moving in very different directions. The EU’s new Packaging and Packaging Waste Regulation (PPWR) sets strict rules around recyclability, biodegradability, recycled content, and producer responsibility. In the US, by contrast, federal action has been slow and broad EU-style regulation looks unlikely. Instead,

they believe most momentum will continue to originate from individual states, creating a more fragmented and less predictable regulatory landscape.

Two Sides North America (TSNA) is a member-supported non-profit advocacy organization for the graphic communications, paper, and paper-based packaging industries. Two Sides North America works to dispel common environmental misconceptions and to inspire and inform businesses and consumers with

engaging, factual information about the environmental sustainability and value of print, paper, and paper-based packaging. They are the only group that works to dispel and pursue the removal of Greenwashing language used by companies and organizations in North America.

To learn more about Two Sides North America and how to become a member, please visit twosidesna. org. To read more about the research referenced in this article, go to BCG.com > Publications > 2025 > New Playbook for Packaging in North America.

This article was reprinted with permission.

JULY-AUGUST 2026  PARCELindustry.com 15

HOW RFID IS REWRITING THE RULES OF PARCEL VISIBILITY

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By Rusty Redecker

he logistics industry is quietly undergoing its most significant operational shift since the introduction of the barcode: the transition from manual, point-in-time parcel scanning to continuous, ambient tracking.

Carriers are investing in RFID and Bluetooth Low-Energy (BLE) for package sensing, automated visibility systems, and connected tracking technologies. They’re moving away from manual, scan-dependent processes toward continuous, real-time, packet-level intelligence. This is part of a wider pattern of adoption that is reshaping how parcels move and knowing where they are.

For those of us who have spent careers building the technology infrastructure that makes this possible, the momentum is real and accelerating. It raises a question every logistics professional should be asking right now: what does this mean for the businesses that depend on these networks?

The Limits of the Scan-based Model Barcode scanning has served logistics well for decades. But it was always a point-in-time solution. A scan tells you where a package was, not where it is. Between scan events, parcels effectively disappear into the network. That gap is where delays happen, where misroutes occur, and where customer frustration builds.

RFID changes the model entirely. Packages are automatically sensed as they pass through facilities, are loaded onto vehicles, and move through the last mile, potentially without any manual intervention. The network becomes, in effect, self-reporting.

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Central to this is the label itself. RFID chips embedded directly into parcel labels transform ordinary packaging into smart parcels — each one carrying a unique digital identity that can be read automatically, at speed, without line of sight.

As carriers extend RFID label printing capabilities to their customers, the chain of custody transfers at the dock door of the shipper in a fully automated manner. This means that intelligence is built into the parcel from the moment it enters the network. The package becomes a data point in motion.

Data, at this density and frequency, unlocks capabilities that barcodes simply cannot support: predictive rerouting, dynamic load balancing, early exception detection, and AI-driven network optimization.

What Consumers Are Already Demanding The timing of this technology evolution is not coincidental.

Consumer expectations around parcel delivery have moved faster than most carriers and their retail clients anticipated.

Research commissioned by Avery Dennison and published in our Consumer Verdict report — based on a 2025 survey of 5,000 online shoppers across the US, UK, France, and Germany — makes the scale of this shift clear. Four in ten consumers now expect non-food home deliveries to arrive within a specific two-to-three-hour window. That figure rises to 44% in the UK and 43% in the US. Meanwhile, 71% of shoppers want the ability to redirect or reschedule a parcel while it is still in transit, rising to 77% for electronics.

Perhaps most telling: 61% say they are willing to pay a premium for enhanced, real-time tracking. Delivery delays

SUBSCRIBE FOR FREE! remain the number one frustration, followed by high costs, damaged packages, and poor tracking. Failed e-commerce deliveries create significant operational costs for both retailers and carriers, with impacts that compound rapidly at scale.

Consumers want to know exactly where those parcels are and be able to act on that information in real time.

Visibility as a Competitive Differentiator For logistics professionals and shipping company directors, the implications of network-wide RFID adoption go well beyond operational efficiency. Visibility is becoming a competitive differentiator. The bar is being raised industry-wide.

Customer expectations are being reset across the board.

Shippers who benefit from these upgrades gain access to richer tracking data and more reliable delivery windows. But it also raises the question of what happens when customers experience that level of transparency and then encounter something less from another provider.

RFID-enabled operations reduce mis-shipments and provide clear transfer of ownership with minimal to no labor as products load on to the carrier's vehicle.

They also cut down on costly WISMO (where is my order) inquiries. They also generate the kind of dense, high-frequency data that makes AI-driven logistics optimization genuinely viable. Who in our industry wouldn’t appreciate such a practical tool for improving throughput, reducing dwell times, and tightening service-level adherence?

Our technology journey is accelerating. As carriers across the industry integrate RFID and connected sensing technologies into their networks, the potential to deliver unprecedented visibility and reliability — for customers of all sizes — is becoming a reality rather than a roadmap item.

As carriers extend RFID label printing capabilities to their customers, the chain of custody transfers at the dock door of the shipper in a fully automated manner.

The biggest operational win will be eliminating the inefficiencies of manual scanning while building intelligence at every step of the journey. But the strategic win is larger: logistics networks that are smarter, more resilient, and better equipped to meet the precision demands of modern consumers.

Rusty Redecker is Vice President, Global Logistics, Avery Dennison, a global materials science and digital identification solutions company.

Learn more at www.averydennison.com.

FROM REACTIVE TO READY: USING DATA ANALYTICS TO MANAGE AN EARLIER PEAK SEASON

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By Emily Gallo

lanning for peak season used to be simpler: retailers braced for a holiday rush, carriers ramped up to handle more volume and by January, everyone exhaled. Those days are over. Today, peak season arrives earlier, lingers longer, and puts more pressure than ever before to meet service demands. That’s especially challenging in healthcare, where on-time delivery is essential for patient care. In many cases, a life could be on the line.

An earlier and longer peak season compounds the impact of many challenges that supply chain professionals already face, including managing costs, improving operational efficiency, and scaling labor to meet demand. Higher volumes during peak season can also exacerbate supply chain disruptions due to weather such as hurricanes and blizzards.

Today, supply chain professionals have an opportunity to turn these operational pressures into a strategic advantage. The right data analytics can empower you with actionable intelligence that brings more precision to your performance during this challenging season. To get started, let’s discuss why peak season is expanding and then how data analytics can help you more effectively manage the change.

Why Peak Season Is Expanding Peak season continues to arrive earlier than it has in years past, and we can expect that trend to continue as the industry adapts to various external factors. This change in timing began with the rise of e-commerce, as consumers flooded carrier networks with more volume than ever before. At the same time, consumer demand for ever-faster delivery began to grow.

While two- or three-day delivery was once the norm, overnight and even same-day service became a growing expectation. The traditional holiday rush only added to the challenges.

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With capacity strained, carriers collaborated with retailers to redistribute sales volume. Rather than wait for the holidays, retailers began to launch major promotional events earlier in the year. By pulling consumer demand forward, the result was a peak season that started earlier and ultimately lasted longer.

The beginning of peak seasons also can shift from year to year, so it is important to recognize the shift and impact to be proactive in preparation and planning. Today, peak season generally kicks off in early fall and stretches well into January, driven by the post-holiday return and exchange cycle. When peak season finally ends, carriers begin planning for the next one to begin.

In effect, it’s a year-round effort no longer limited to the holiday season. And the impact isn’t confined to the retail industry alone. An earlier and longer peak season affects all industries that rely on carrier networks.

To better manage the challenge, logistics professionals can rely on a powerful combination of prescriptive and predictive analytics. First, you can leverage prescriptive analytics to understand how you’ve handled peak season disruptions in the past. Then, use predictive analytics to leverage those insights as the foundation for proactively forecasting and addressing future disruptions. Let’s take a closer look.

Prescriptive Analytics: Building the Foundation Every peak season generates exceptions. Weather disrupts routes, shipments get delayed and volumes spike and strain carrier capacity. Prescriptive analytics examine these exceptions and other historical data to reveal patterns. You see what happened, why it happened, how your team responded, and the result.

This allows your team to identify what worked, and what didn’t. The lessons learned can then be codified into actionable standard operating procedures (SOPs). You can look at historical data to determine which lanes, markets, or regions experienced higher disruption rates during peak season. Then, use that data to optimize your logistics, updating your playbook to prepare for similar scenarios next peak season.

For example, let’s say your organization historically sees disruptions during hurricane season, as your shipments move through the Gulf Coast region. Using prescriptive analytics, you can see exactly how your organization managed the impact of past storms. As a result, you’ll have the foundation to prebuild a contingency plan that won’t have to be invented under pressure.

This historical perspective is especially important as peak season now stretches earlier into summer and later into January. As the window for potential disruption grows, prescriptive analytics give you a structured way to mine a longer history of exceptions to build a richer, more reliable foundation for future planning.

Think of prescriptive analytics as your institutional memory put to work. You’ll turn historical insights into timely action, continuously refining SOPs in anticipation of the next peak season. The approach can make the difference between knowing in advance how to respond effectively versus improvising in the moment.

Predictive Analytics: Forecasting the Future While prescriptive analytics build the foundation, predictive analytics apply those insights forward. By understanding historical volume patterns during an earlier and longer peak season, supply chain professionals are in a better position to anticipate where and when demand surges are likely to occur.

That forecast can then drive critical logistics decisions well before the surge — including how to position inventory, reserve carrier capacity, reroute shipments, and plan labor needs.

In effect, predictive analytics shrink the window between signal and response, giving organizations the ability to anticipate and address potential disruptions before they occur. This is especially important during peak season, when carrier capacity is already under greater pressure. By combining risk identification with pre-planned responses, you’ll have a powerful tool to be decisive rather than reactive when disruptions occur.

Let’s return to the hurricane example mentioned earlier.

While prescriptive analytics reveal which rerouting decisions were most effective, predictive analytics leverage that foundation to build an alternative route in advance of the next storm.

Creating a Comprehensive Approach Together, prescriptive and predictive analytics are key tactics for creating supply chain visibility, leveraging robust technology paired with logistics expertise to help drive actionable insights that better inform your peak season planning. The cycle is continuous, with each peak season generating new lessons learned that inform the prescriptive foundation and sharpen predictive modeling for next peak season.

If you haven’t already, it’s important to begin your peak season planning today. One of the most common mistakes that supply chain professionals make is waiting too long to prepare.

Think about everyday operations with a peak season lens; if you have a solid foundation to handle everyday pressures, peak season can be less stressful.

Next, be sure to update your plan every year. Take a look at last year’s data and account for any changes year-over-year that could impact your operations, such as carrier service commitments and surcharges. Plan ahead for additional labor expenses, carrier capacity constraints, and peak season surcharges.

As part of your efforts, develop what-if scenarios and contingency plans, rather than react to disruptions as they happen. For example, hurricane season can impact not only the Southeast, but also destinations thousands of miles away that rely on the same carrier networks. Using data analytics to prebuild alternative routing scenarios can make the difference in on-time delivery.

Once peak season is underway, be intentional and proactive with customer and carrier relationships. Close collaboration and ongoing communication are keys to success, particularly during peak season disruptions.

With that season arriving earlier and lasting longer, the time to plan is today. And prescriptive and predictive analytics are the way.

Emily Gallo is Senior Vice President and General Manager, OptiFreight Logistics at Cardinal Health.

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BY JOHANNES PANZER

UNDERSTANDING CUSTOMER DELIVERY EXPECTATIONS IN 2026

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-commerce growth is slowing. The heady days of 20% pandemic-driven growth are a distant memory. Instead, online retailers can expect single-digit growth, with US e-commerce revenue projected to grow at a compound annual growth rate (CAGR) of six percent between 2026 and 2030.

Exacerbated by the profit-eroding combination of tariff volatility, increased operating costs, and faltering consumer confidence, slower sales growth means e-commerce retailers should re-examine customer service and retention strategies to build brand loyalty, keep the sales flywheel spinning, and protect margins. Profitable retailers are doubling down on the customer experience and parcel delivery is a key focus area.

A powerful piece of the customer experience, parcel delivery influences

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how shoppers view the brand, whether they make subsequent purchases, and if they recommend the retailer to others (or shout about their poor delivery experience on social media).

Unfortunately, many retailers underestimate the power of a positive delivery experience to differentiate the brand, boost repeat sales, and drive customer lifetime value. They fail to recognize that parcel delivery has shifted from a logistics function to a driver of brand loyalty. This costly lack of awareness may stem from not fully understanding what their customers want from delivery — and why.

Consumer Delivery Expectations: The Broad Strokes So what do customers expect? In 2026, convenience and choice have become major loyalty drivers. Consumers want

flexibility and control over their delivery experience, such as the capacity to choose delivery windows or reschedule when a package arrives.

Delivery transparency is also becoming table stakes, with customers expecting real-time visibility and proactive communication (e.g., accurate ETAs, status updates) throughout the delivery process.

Speed and cost are also at play.

While some customers want same-day or next-day delivery, others are happy to wait a few extra days for free delivery.

Demographics are another element at work. Younger consumers, for example, may prioritize environmental sustainability over fast or free delivery.

The fine point that many retailers overlook is that not all consumers want the same thing — and ignoring the diversity of delivery preferences across their customer base is a recipe for disaster.

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Navigating Differing Delivery Expectations To map the complex web of customer delivery wants and needs to their last-mile strategy, leading e-commerce retailers are segmenting customers by delivery preferences. Creating delivery personas helps retailers understand customer expectations to reduce costs, build loyalty to encourage repeat purchases, and add incremental revenue.

Delivery personas are built around five factors: speed, cost, precision, value-added services, and sustainability.

The balance changes by customer (e.g., Gen Z vs. Boomer), product category (e.g., white glove goods vs. books), and purchase occasion (weekly grocery shop vs. items that require installation).

While no one delivery persona is better than another or applies in every situation, some combination will provide the right balance of service and cost.

For e-commerce retailers, the opportunity lies in using delivery personas to create an extraordinary customer experience.

1. The cost-conscious persona. These customers are extremely cost-sensitive and choose the slowest delivery option if it saves them money. For example, a 2025 study found that 49% of over-65 consumers value the lowest-cost delivery over speed, compared to only 28% of the under-35 cohort.

2. The speed-focused persona. This persona is willing to pay for a faster, reliable delivery promise. Fast delivery is often prioritized by customers buying high-value impulse purchases and time-sensitive products (e.g., medicine, replacement items). Savvy retailers can take advantage of this incremental delivery income, helping to offset overall delivery costs and protect margins.

Interestingly, this persona is becoming less prominent as speed becomes less of a driver, especially for cost-conscious customers. Notably, a whopping 78% of over-65 consumers say speed is less important.

3. The precision-led persona. These customers prioritize a narrow time

window over fast delivery, often needing goods on a particular date and time.

Many large-format items fit into this category. For example, delivery of a home renovation purchase (e.g., water heater) needs to be coordinated with the installation date and tradesperson availability. Around one in five consumers (19%) say a precise delivery window matters more than delivery speed.

4. Parcel-mentality delivery persona.

This persona is common in e-commerce categories in which items are small, relatively low-value, and do not require value-added services such as installation (e.g., books, apparel, toys). These customers want fast delivery but do not need a precise delivery window; they’re happy to have their package left on their doorstep at any point during the day.

5. Sustainability-focused persona. This delivery persona describes customers, often Gen Z and Zillennial shoppers, seeking eco-friendly options to reduce their carbon footprint. Options may include grouping orders, choosing a delivery day when a vehicle is already in their area, or selecting the “green” delivery slot as designated by the retailer. In a recent survey, 40% of under-35s indicated interest in receiving an environmentally friendly delivery option, compared to just 23% of over-65s.

This persona represents an excellent opportunity for retailers to marry a positive customer experience with operational and cost efficiencies, as sustainable deliveries reduce costs by decreasing miles driven, increasing delivery density, and enabling better planning with longer lead times.

Satisfying Gen Z Delivery Expectations Younger consumers are driving online growth. In fact, the survey found that 43% of under-35s increased their spend year-on-year, compared to 32% of over-65s. But given their reputation for high e-commerce and delivery expectations — and low tolerance for mistakes — alarm bells should be ringing for retailers in 2026.

A staggering 79% of under-35s reported issues with delivery (e.g., late or missing deliveries, parcel left in unsecure location, damaged package) during the three-month period surveyed.

Equally concerning, the younger generation is more likely to act in response to a poor delivery experience. Whether telling family and friends to avoid the retailer (20%) or posting their dissatisfaction on social media (15%), 79% of under-35s took some action, compared to just 45% of over 65s.

When only 11% of under-35s are satisfied with the delivery process, and 21% admit to not ordering from a retailer again in response to mediocre delivery experiences, brands are risking the profitability associated with long-term relationships with this demographic.

Understanding the delivery personas that reflect Gen Z delivery expectations is imperative for crafting the last-mile experience they demand.

Package Delivery: An Overlooked Profit Advantage With growth slowing, the financial impact of customer dissatisfaction and attrition is becoming more problematic. E-commerce retailers cannot afford to lose customers and suffer reputational damage due to bad delivery experiences. Given the industry’s tight margins, the profit erosion associated with repeat deliveries, damaged products, or returns can cripple operations. As a result, delivery experience has become a distinct competitive advantage.

Astute retailers understand that consumer delivery expectations are nuanced, with no individual delivery persona more important than another or applicable in all cases. The right mix, however, provides the necessary balance of speed, precision, and cost (plus the potential for an incremental revenue stream to offset the high cost of last mile delivery) to build brand loyalty, drive repeat sales, and boost top- and bottom-line performance when retailers need it most.

Johannes Panzer is Head of Marketing, Global Ecommerce, for Descartes.

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BY VAIBHAV MISHRA

WHY YOUR ADDRESS DATA IS COSTING YOU MORE THAN YOU THINK — FROM FIRST MILE TO LAST

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very year, logistics teams across the industry invest enormous energy in optimizing their operations — improving hub layout, renegotiating vendor contracts, deploying new routing algorithms, and launching customer experience initiatives. All this work is 100% warranted, but the compounding, systemic damage caused by bad address data is far more impactful to the bottom line.

There is one category of costs not discussed in great detail in the boardroom, and it is time to shed some light on it. Bad address data refers to missing or incomplete fields for house or street numbers, city, state and neighbourhood names, as well as formatting issues and ambiguity caused by using descriptive features such as landmarks or bodies of water instead of actual address data.

Fulfillment leaders often have no idea what this category of costs amounts to, as they are typically absorbed before they are discovered and corrected, and manifest as re-deliveries, sort errors, long hauls, customer service issues, and carrier surcharge fees.

Quantifying What Bad Address Data Actually Costs The cost of poor address quality is often hidden and dispersed across a

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number of budget lines so that it is not always visible. Here is a breakdown of the total cost.

1. Redelivery: One of the simplest measures of cost that has a significant impact is redelivery attempts. If a first delivery attempt fails, there must be a second attempt. This uses up more vehicle time, more driver time, more fuel, and possibly more customer service time. A two percent failure rate of the first attempt, which might sound like a small amount, turns into tens of thousands of redelivery attempts every month.

2. Sort Errors: These are less visible but potentially more expensive. In the case of a mis-delivery as a result of a failed attempt to parse the address and therefore the package being sent to a different sorting facility, the impact can be more extreme. In this case, the misdelivered package never enters the pickup window for the intended sorting facility, and the capacity at the incorrect facility is still being utilized with the need for possible re-scans to the correct facility and re-routing. The errors that were experienced in the sorting process that resulted in a mis-delivery must also be addressed by customer service prior to allowing any additional pickups from the shipper.

3. Carrier address correction surcharges: Often overlooked when conducting a carrier audit, these are the charges the carrier levies for every occasion they need to correct an address on a package while it is in transit. While the fee is small on a single package, it can be very expensive on a large number of packages.

4. Customer service load: It is one of those soft costs that aren’t particularly costly but aren’t inexpensive either.

A bad delivery experience leads to a tremendous amount of phone calls from unhappy customers.

When you calculate the total cost of poor-quality addresses in a mid-size warehouse or fulfillment center, it is almost always more than any possible discount that can be negotiated in a carrier rate renegotiation cycle.

What Good Address Intelligence Actually Looks Like Fixing address quality is not a one-time data cleaning project. It is a critical operational function that must be built into the shipping process beginning at the point of order.

Validation of an address at the point of order capture is essential. Validation should be done in real time. Validations should be for the correct address format

SUBSCRIBE FOR FREE! and fully resolved localities so that there are no uncertainties regarding the locality, and to alert the sender to any issues that may arise with the shipment before it moves into the fulfillment queue. The cost to validate and correct an address prior to creating a shipping label is $0. The cost to validate and correct an address after a shipment has been improperly sorted is in the $100s to $1,000s.

At the sort facility, address intelligence should be used to determine the sort rules for the addresses. Using pin codes or broad geographic zones to determine the sort path for an address is not very accurate and is not relevant at a locality-level sortation level of delivery, which is more in line with the way drivers actually deliver in their service areas. Building a locality database that goes below the pin code level (we call this micro-sector mapping) is important to enable this level of sortation and this data needs to be up to date to reflect the dynamic nature of the network and streets.

The cost to correct an address before the label is printed is $0. The cost to

correct an address after it has been mis-sorted is much, much higher.

Where to Start If you are a logistics or supply chain executive trying to persuade your management team to invest in address quality initiatives, we suggest following this three-step process.  Pull three months of carrier invoice data and then begin to search for address correction surcharges. This is usually the quickest dollar an executive’s eyes will grow wide at.  Ask your carrier or 3PL to provide a first-attempt delivery failure report broken down by source (e.g. by ZIP Code, city, state, etc) for each type of address.

The source of the mismatch (i.e. where the primary inaccuracy exists) can often be inferred from the discrepancies that vary the most by source.  Audit the address validation logic at your order capture layer. Many e-commerce platforms include address validation tools that are turned off by default or configured too loosely to catch the most common

error patterns in your market.  Calculate the fully loaded cost of a failed delivery attempt in your operation — driver time, vehicle cost, re-sort handling, and customer service. Apply that number to your failure volume. Most operations find the result uncomfortable.

Validating address quality is a dirty word. It won’t make it into your sales pitch, and you won’t get a standing ovation on stage touting the benefits of validated address data. But it is a problem that can be fixed, and when compared to some of the other headaches organizations are dealing with, validating and cleaning your address data could yield some of the biggest returns given today’s circumstances.

Vaibhav Mishra is Director of Technology at Libera, India's largest logistics and fulfillment technology company. Connect with him on LinkedIn (https://www.linkedin.com/ in/vaibhav-mishra-tx/) or email Vaibhav. mishra@elastic.run.

THE MIDDLE MILE IS WHERE SUPPLY CHAIN RESILIENCE IS WON OR LOST

By Carlos Barbosa

threshold with a two-item order — per-line fees are a rounding error at that price point. But low-value, multi-item sellers and especially subscription businesses face a different calculation.

For a subscription box priced at €50 per month containing five items, the July 1 fee alone could add €15 per shipment before any additional customs costs are considered.

As a result, more companies are positioning inventory closer to end customers through regional fulfillment hubs. Moving inventory in bulk often allows businesses to clear goods through a B2B customs process at wholesale value rather than paying duties and taxes on the final retail value of individual consumer orders. What starts as a customs change can quickly become a fulfillment and inventory strategy decision.

That is increasingly what makes the middle mile so important in the package lifecycle. It has become the area where regulatory change, transportation strategy, inventory planning, and customer experience converge.

or years, if you asked brands shipping internationally where their logistics attention went, the answer was usually the final mile. Delivery speed, carrier options, and last-mile tracking was optimized, invested in, and obsessed over, while the middle mile quietly did its job. As long as freight moved and parcels cleared customs, most brands didn't think much about it. But that time has come to an end.

Over the past two years, a wave of changes to tariffs, customs, and regulations has become the most impactful factor in cross-border logistics, and the pressure is landing on the middle mile. The end of de minimis in the US, tightening customs data requirements, and new duty levies in markets like Australia and New Zealand have all added friction to international shipping. Each change that governments make adds cost, complexity, or uncertainty to the middle mile.

Carrier Performance Matters More than Ever The regulatory changes are also exposing something that was always true, but easy to overlook — carriers are not equally capable in the middle mile. As customs requirements increase, the performance gap between carriers widens. According to ePost Global's 2025 Shipping Intelligence Report, there’s a 96-point gap in delivery performance between top-performing and underperforming carriers across its network.

Historically, carrier selection often centered on transit times and shipping rates. Today, questions surrounding which carrier clears customs fastest, which has the infrastructure to handle delivery duty paid (DDP) in a specific market, or which can absorb a regulatory change without service disruptions are just as important.

A customs delay, documentation error, or clearance issue can quickly erase any savings achieved through a lower shipping rate. The cost isn't limited to transportation. It extends to customer service inquiries, delayed deliveries, abandoned purchases, and damaged customer relationships.

Working with a shipping partner that monitors regulatory changes across markets and knows when new rules or fees are coming can make the difference between reacting to a cost increase, and preparing for one.

The Growing Impact of Regulatory Change Upcoming changes in the EU alone illustrate how quickly the economics of cross-border shipping can change. As of July 1, 2026, a new €3 per-line item fee applies to every imported parcel under €150. In November, an additional €2 customs handling fee follows. By 2028, the €150 IOSS cap disappears entirely and full customs declarations apply to all consignments.

These changes force businesses selling into the EU to decide whether they absorb the costs and take the margin hit, pass them to the consumer and risk competitiveness, or restructure operations. But that decision looks different depending on what a merchant sells and where they sell it. A brand selling luxury shirts at €80 each hits the €150

Customs Strategy Is Now a Business Strategy Brands should also reassess how parcels clear customs and what makes the most sense in this changing environment.

Many cross-border shipments still default to delivery duty unpaid (DDU), where the consumer pays duties and taxes upon arrival, but this model creates problems when duties change. Some carriers are still figuring out how they’ll handle fees like the EU’s July 1 charge, and customers don’t respond well to surprise delivery costs.

DDP, where duties are pre-cleared before shipping, removes that uncertainty. DDP shipments already deliver significantly better performance than DDU in European lanes, and that gap is likely to widen as fee structures get more complex. Brands

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still relying on DDU should be evaluating whether it’s costing them more than they realize.

Flexibility Is Becoming a Competitive Advantage Merchants should also assess whether their logistics setup allows the flexibility to shift volume when disruption hits. Historically, disruptions were treated as isolated events. A weather issue, labor action, or a carrier outage would create temporary challenges before operations returned to normal. However, volatility is becoming part of the operating environment. As a result, resilience is becoming just as important as efficiency.

The Shipping Intelligence Report also found that shipment rerouting across its network surged by more than 2,400% in 2025, with no signs of returning to baseline. Being able to move volume between carriers and customs channels quickly is becoming a basic operational requirement. The easiest way to build flexibility into cross-border operations is with a multi-carrier setup.

A multi-carrier approach also gives businesses the ability to match the right carrier to the right market. Some carriers excel at customs clearance in specific regions. Others perform better in certain delivery networks or have stronger infrastructure for DDP programs. Maintaining access to multiple options allows businesses to adapt as regulations, costs, and service levels evolve, rather than becoming dependent on a single provider's capabilities.

Having more than one shipping partner means a disruption doesn’t shut down an entire lane, and volume can move to another network without starting from scratch.

The Middle Mile Is No Longer Running Quietly Customs and regulatory changes is a wave that's still building. By 2028, the EU will eliminate the €150 IOSS cap entirely, and full customs declarations will apply to all consignments — affecting a majority of cross-border parcel volume into Europe. Beyond the EU, many countries are watching the rollout closely and taking note of what revenue each new fee generates. The UK still maintains a £135 duty-free threshold, but is widely expected to be among the next to change it. Governments are seeing how much money they've been leaving on the table through customs exemptions, and adjusting accordingly.

The middle mile has become the point where customs policy, carrier performance, fulfillment strategy, inventory placement, and customer experience intersect. Knowing which markets are modifying rules, understanding the financial impact on a specific product mix, deciding where inventory should be positioned, choosing carriers with genuine customs expertise, and building the flexibility to reroute when conditions change are all decisions happening in the middle mile of the logistics chain.

Find the EQUIPMENT you need SOFTWARE you need SERVICES you need

Carlos Barbosa is Vice President of eCommerce Solutions at ePost Global.

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By Sam Sealey

BEYOND COST: DESIGNING AN E-COMMERCE NETWORK THAT PERFORMS

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hat does an optimal e-commerce network look like?

Does it have the fewest facilities, the fastest delivery promise, or the lowest transportation cost? It's not that simple.

Customers often ask us to optimize a specific part of their network rather than redesign it entirely. In one recent engagement, a large e-commerce shipper wanted to identify the optimal carrier mix while keeping its fulfillment footprint and service commitments unchanged. The model showed meaningful transportation savings by reallocating package volume among carriers. However, the lowest-cost solution on paper was not necessarily the best business decision. To determine the right path forward, we evaluated how those changes would affect contract commitments, incentive structures, penalty provisions, facility operations, and technology requirements.

That experience illustrates a broader reality: network design is not about optimizing one variable.

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Facility location, inventory positioning, carrier strategy, customer expectations, contracts, and operational execution are all connected. Improving one area often creates trade-offs elsewhere. The most effective networks are deliberately designed around customer demand, operational feasibility, and long-term business objectives.

What Does “Optimal” Really Mean?

An optimal e-commerce network is not defined by a single metric. It balances cost efficiency, service performance, customer experience, and resilience.

A decentralized network may reduce transit times and improve delivery speed, but it can also increase inventory carrying costs and operational complexity. A centralized network may be simpler and less expensive to operate, but it may struggle to support aggressive delivery expectations.

The right answer depends on the shipper’s product mix, customer base, growth plans, and service promise.

Optimal design comes down to alignment with business strategy.

Core Components of Network Design Facility strategy forms the backbone of the network. Facility location decisions are among the most impactful choices a shipper can make, and among the most difficult to reverse.

Organizations must determine how many fulfillment centers to operate, where to position them, and whether alternative strategies can achieve similar benefits without adding new buildings.

As delivery expectations shift toward next-day and two-day service, many shippers are looking beyond traditional fulfillment center expansion. Zone-skipping, direct injection into carrier facilities near major customer clusters, and ship-from-store or ship-from-branch programs can reduce parcel zones and improve delivery speed while leveraging existing infrastructure. The optimal footprint often blends national coverage, targeted regional capacity, and strategic use of existing assets.

Inventory positioning is equally important. Centralized inventory can reduce working capital requirements and simplify replenishment, but it may

SUBSCRIBE FOR FREE! limit speed. Distributed inventory can improve service levels, but it increases safety stock requirements and the risk of imbalance. For example, an industrial distributor may carry hundreds of thousands of SKUs, from frequently ordered fasteners and safety supplies to specialized replacement parts ordered only a few times per year.

Stocking every item in every facility would create excessive inventory cost and obsolescence risk. Instead, the distributor may position high-demand products across regional facilities while centralizing slower-moving items. This tactic improves service where demand is strongest without duplicating the entire assortment.

Transportation and carrier strategy connect the network. Parcel costs are heavily influenced by zone, weight, dimensional pricing, residential surcharges, and delivery area surcharges.

Reducing average zone can lower cost per package, but it may require additional facilities, new carrier relationships, or different induction strategies. Many large shippers are also moving from single-carrier strategies toward diversified models that match carriers to the shipments they handle best by geography, weight, service level, or cost profile.

Key Design Drivers Strong network design begins with demand. Understanding where orders originate, and how those patterns change over time, directly affects how quickly and cost-effectively products can be delivered.

Geographic concentration may justify placing inventory closer to major customer populations, while seasonal peaks or regional growth can create capacity constraints in some markets and excess capacity in others. Aligning capacity with demand helps control transportation costs, maintain service levels, and avoid unnecessary facility or labor investments.

Service requirements are another critical input. Customer expectations continue to rise, with next-day and twoday delivery becoming common in many markets. The 2026 GMT Benchmark Report found that 74% of online shoppers expect delivery within two days, and 92% consider delivery windows when making purchasing decisions. Different channels, including direct-to-consumer,

marketplace, and wholesale, may also require different service levels. These expectations influence where inventory should be positioned, how fulfillment capacity should be deployed, and which carriers should be used.

Cost and operational considerations must be evaluated together. Transportation savings can be meaningful, but they should not be considered in isolation.

Labor costs, facility lease rates, utilities, taxes, inventory carrying costs, implementation timelines, carrier capacity, and facility readiness all affect the value of a proposed network.

A model may recommend a theoretically optimal location or carrier strategy.

However, if labor is scarce, real estate is unavailable, or the carrier lacks pickup coverage in key markets, the recommendation may not be practical.

The best design is not necessarily the lowest-cost design; it is the one that delivers the desired service levels and can be executed sustainably.

Technology and Execution Technology has expanded what shippers can model and execute. Optimization tools can evaluate scenarios involving facility locations, inventory placement, carrier allocation, and service commitments. Integrated Order Management Systems (OMS), Warehouse Management Systems (WMS), Transportation Management Systems (TMS), and Parcel Shipping Systems (PSS) help execute those decisions at the shipment level.

For example, a retailer with inventory in both distribution centers and store locations can evaluate inventory availability, transportation cost, carrier transit time, labor capacity, and the delivery promise before selecting the best fulfillment point. One order may ship from a store to improve speed, while another may ship from a distribution center because store inventory or labor is constrained.

This execution layer is critical because large, complex shippers often struggle to convert a theoretically optimal design into a practical operating model. Common pitfalls include over-prioritizing cost, designing only for current conditions, ignoring demand variability, making decisions in silos, and underestimating implementation complexity.

A Framework for Effective Network Optimization Successful optimization initiatives typically follow a structured but iterative process. First, define objectives across cost, service, customer experience, and long-term business goals. Next, gather and validate data on order patterns, shipment characteristics, inventory flows, constraints, and cost drivers. Then, model scenarios that include facility locations, inventory strategies, carrier allocation, and service commitments.

While the process itself is straightforward, the quality of the analysis ultimately depends on the quality of the data supporting it. Before evaluating trade-offs, organizations must have confidence in the data underlying the analysis. While technology can accelerate analysis and enable more sophisticated modeling, it cannot overcome poor data quality. Inaccurate data or assumptions can produce recommendations that appear optimal in a model but fail in practice.

From there, assess trade-offs across transportation cost, inventory requirements, contractual obligations, service performance, and operational complexity. Build an implementation plan that prioritizes achievable opportunities while preserving flexibility. Finally, track performance through KPIs such as cost, transit time, carrier performance, service levels, and network utilization. Continuous measurement helps validate results, identify emerging issues, and refine the network as business conditions evolve.

Ultimately, the most effective networks are built on data, not assumptions.

Sam Sealey is the Sr. Manager of Analytics at Green Mountain Technology (GMT). In this role, Sam partners with clients and internal Green Mountain teams to drive excellence in analytics by focusing on strategic decision-making, fostering innovation, and optimizing operational processes. Request a copy of the 2026 GMT Benchmark Report at greenmt.com/ resource/2026-green-mountain-benchmarkreport/ and learn how shippers are adapting to higher customer expectations, changing carrier dynamics, and increasing operational complexity.

JULY-AUGUST 2026  PARCELindustry.com 27

By Gerryann Agovino

PEAK SEASON PLANNING STARTS NOW:

P

whether caps, waivers, or other protections are available.

The difference between understanding those mechanics and simply accepting published surcharge tables can be significant.

Before peak season arrives, review how your contract addresses demand and peak surcharges; volume thresholds and calculation methodologies; waivers, caps, and exclusions; and service-specific surcharges.

1. How Will Peak Surcharges Affect Your Business?

Most shippers know peak surcharges are coming. Far fewer understand that effective peak season strategy lies somewhere between an art and a science. The “art” of peak season strategy involves understanding your carrier contract and identifying where you have leverage to negotiate.

Many carrier agreements contain provisions that determine whether peak surcharges apply, how they are calculated, and

2. Have You Reviewed New Contract Language Since Last Peak?

Carrier pricing is not the only thing changing. Contract language continues to evolve as well.

One recent example is UPS's introduction of Emergency Surcharge language within its terms and conditions. According to UPS, it reserves the right to apply an Emergency Surcharge at its “sole and unlimited discretion” for any period of time it determines, with details to be announced later. The fee would apply in addition to existing charges, and notably: “No waiver, discount, or reduction applies unless UPS agrees in writing.”

In practical terms, this means certain future surcharges may not automatically be subject to the discounts and concessions shippers negotiated elsewhere in their agreements.

While the specific impact will vary by shipper and agreement structure, it reflects a broader trend: carriers are seeking greater flexibility to respond to disruptions, extraordinary events, and changing market conditions.

7 QUESTIONS TO ASK BEFORE PEAK SEASON ARRIVES eak season is often viewed as a capacity challenge. Forecast the volume, secure the carrier capacity, and execute. While those steps remain important, they overlook a larger reality: peak season rarely creates new problems. It exposes existing ones.

Historically, that was a reasonable approach. But parcel shipping has become far more complex.

Over time, we have found that peak season acts as a stress test for shipping strategies. It magnifies weaknesses already in play: the carrier contract that no longer reflects a company's shipping profile, the packaging that quietly triggers dimensional surcharges, the fuel assumptions that no longer match reality, or the economy service strategy that made sense last year but not this year.

By the time peak season arrives, many of those issues are already locked in. That's why now is the time to ask a few important questions about your parcel strategy.

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SUBSCRIBE FOR FREE! That does not mean shippers should panic. It does mean they should understand what protections exist within their agreements and where additional exposure needs to be addressed.

Peak season often amplifies disruptions. Reviewing contract language before that happens is simply good risk management.

3. Are Marketing and Shipping Working From the Same Peak Plan?

One of the most significant opportunities in parcel spend management today is also one of the most overlooked: internal alignment. Marketing teams build promotional calendars.

E-commerce teams plan campaigns. Operations teams forecast inventory and labor. Transportation teams manage carrier relationships. Too often, those conversations happen independently. That creates problems when promotions drive unexpected shipping volume into already expensive periods or miss opportunities to strategically divert volume.

For example, volume-based peak surcharges are calculated by comparing peak volume against historical shipping baselines. In other words, your shipping profile throughout the year can influence what happens during peak season.

Decreasing the delta between peak and off-peak weekly volumes not only helps your margins on a per-package basis, but it can also decrease the delta used to calculate volume-based surcharges during peak season. Another example might include Buy Online, Pick Up In Store (BOPIS) promotions tied to holiday deals and brick-and-mortar events. Shifting volume from residential delivery to store pickup (and reducing associated DAS surcharges) during peak season can help offset demand surcharges.

Aligning customer purchase and pickup behaviors with your shipping economics is what we call “integrated shipping.”

Increasingly, integrated shipping is a meaningful differentiator, especially in the e-commerce space.

4. Is Your Packaging Strategy Ready for Peak?

Packaging optimization remains one of the most overlooked opportunities in parcel shipping. That is especially true as carriers continue tightening dimensional pricing rules.

So far in 2026, carriers have implemented changes related to dimensional weight calculations, rounding methodologies, Additional Handling criteria, and Large Package thresholds.

USPS, for example, recently announced dimensional pricing changes that further align its methodology with UPS and FedEx. Small packaging inefficiencies can become expensive during peak season when surcharges stack on top of already elevated shipping costs. Now is the time to review package dimensions, identify oversized shipments, and determine whether alternative packaging configurations can reduce exposure. The best time to address packaging inefficiencies is before peak season turns them into unnecessary costs.

5. Is Your Economy Strategy Still Aligned?

Many shippers assume their economy shipping strategy from last year will work just as well this year. That assumption deserves a second look.

Economy services across the industry continue to evolve.

Ground Saver, Mail Innovations, Ground Economy, Ground Advantage, and regional carrier offerings have all experienced changes related to pricing, service levels, dimensional policies, or surcharge structures.

In some cases, services that once delivered significant savings have become more expensive. In others, regional carriers or alternative delivery models may present new opportunities.

The important question is which service makes the most sense for your current shipping profile, not which service made sense last year.

6. How Much Fuel Volatility Can You Absorb?

Fuel surcharges continue to be one of the most dynamic components of parcel pricing.

This year, both UPS and FedEx have implemented multiple fuel surcharge increases across domestic and international services. DHL and other providers have followed similar patterns.

Unlike traditional annual rate increases, fuel adjustments can occur throughout the year and often have an immediate impact on shipping spend. That creates a challenge for forecasting and budgeting.

As peak season approaches, shippers should evaluate current fuel surcharge impact, exposure if fuel surcharges continue to increase, budget assumptions, and service mix.

Fuel is no longer simply a surcharge. It has become an active planning variable.

7. Is Your Carrier Mix Still Aligned With Your Business?

Finally, parcel shippers should take a step back and ask a broader question: does your carrier strategy still reflect your business?

For many organizations, the answer is not as clear as it once was. Businesses evolve. E-commerce channels grow. Customer geography changes. Acquisitions occur. New fulfillment nodes are added. Product mixes shift.

Over time, even well-designed carrier strategies can become misaligned with current business realities.

This is the time to evaluate carrier concentration risk, regional carrier opportunities, service-level alignment, network changes, and contract competitiveness.

A carrier mix that was optimal three years ago may not be optimal today.

Peak Season Is a Stress Test The most successful peak seasons are often decided long before holiday demand arrives.

Carrier strategy, contract language, packaging decisions, fuel exposure, promotional planning, and service selection all influence what happens during the holiday rush. Peak season may still be about volume, but increasingly, profitability depends on the decisions shippers make before that volume arrives.

Gerryann Agovino is Head of Marketing & Strategic Partnerships, LJM. JULY-AUGUST 2026  PARCELindustry.com 29

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PCCCORNER

WHY ATTENDING PCC WEEK 2026 MATTERS TO MAILING AND SHIPPING INDUSTRY PROFESSIONALS

By Jeffrey D. Hilliard Jr.

T

he mailing and shipping industry is constantly changing, and keeping up with those changes is critical for business customers to remain competitive. From new technology and operational updates to changing customer expectations and Postal Service developments, there is always something new and challenging to navigate. That is why our Annual National Postal Customer Council (PCC) Week, taking place September 28–October 2, 2026, continues to be such an invaluable event for the industry.

Hosted by local PCCs across the country, PCC Week brings together mailers, shippers, Postal Service leadership, technology providers, and industry partners for a week focused on education, collaboration, networking, future industry trends, and sustaining industry growth.

One of the key benefits of attending PCC Week is the opportunity to learn more about the tools and strategies shaping today’s value chain. Topics often include automation, equipment enhancements, mail and shipping tracking, address quality, postage optimization, and other technologies that are transforming mailing and shipping operations. Just as important, attendees gain insight into how those tools align with USPS programs, compliance requirements, and customer expectations. For mailing and shipping operations teams, service providers, and technology partners, these sessions often offer ideas that can be applied immediately.

PCC Week also gives attendees direct access to Postal Service subject matter experts. The opportunity to ask questions, discuss operational challenges, and hear directly

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from Postal Service leadership is one of the most beneficial aspects of the week. These discussions can help organizations better understand postal changes, improve internal processes, and plan with greater confidence.

The QR code will direct you to the PCC event locator Networking is another key advantage of PCC Week. The event creates opportunities to connect with peers across the mailing and shipping industry, meet vendors offering new solutions, and build relationships with Postal Service representatives and industry partners. Many of those connections continue well beyond the event itself.

For many industry professionals, PCC Week is also an investment in professional development. Educational sessions can support continuing education, expand industry knowledge, and reinforce a commitment to excellence in mailing and shipping operations. Whether someone is new to the industry or has worked in the industry for decades, there is always value in learning from others in the field.

Perhaps most importantly, PCC Week gives the industry an opportunity to be heard.

Open dialogue between Postal Service leadership and industry professionals helps create meaningful dialogue that can influence future products, services, and policies.

For anyone working in mailing or shipping, PCC Week 2026 offers more than information; it offers perspective, connection, and practical value.

To find events happening near you, visit the Postal Customer Council Event Locator at https://about.usps. com/what/business-services/ postal-customer-council/ pcc-event-locator.htm. Don’t miss the opportunity to connect, learn, and grow with the mailing and shipping community

Jeffrey D. Hilliard Jr. joined the Postal Service as a Postal Support Employee in May 2012, where he worked at the Santa Clarita, California Processing and Distribution Center. In his current role as Headquarters Customer Outreach Specialist, he helps foster a close working relationship between the U.S. Postal Service and commercial mailers and shippers. In addition, Jeff is the Postal Co-Chair for the Postal Customer Council Advisory Committee Strategic Innovation Sub-Committee, where his primary objective is to create innovative solutions to enrich Postal Customer Councils.

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