Welcome to our latest eCommerce and logistics news roundup!
This week, we’re looking at how DHL is trialing sustainable deliveries in Miami; debating whether the USPS will raise its contract carrier rates, and what that means for everyone involved; and wondering if Amazon Prime Day may come a little late this year.
And, in case you missed our last logistics roundup, you can still read it by heading over here!
Reef Technology x DHL Express Bring Eco-Friendly Deliveries to Miami
Reef Technology and DHL Express have teamed up to offer green last-mile delivery solutions in downtown Miami. The pilot program will see the courier use four of the tech innovator’s environmentally-friendly e-Cargo Cycles to deliver packages in the area.
Traffic has long been a concern in Miami, which is plagued with congested roads. The three-wheel bikes being used in the pilot program are expected to help reduce road congestion in the city while also furthering DHL’s goal of implementing more green delivery solutions across its network.
Easyship’s Take: Who doesn’t love to see big companies doing great things for the environment. Sure, three bikes might seem like small potatoes in the grand scheme of things, but what makes this exciting is the promise of a more eco-friendly logistics industry in the near future.
DHL has stated that it aims to have up to 70% of its operations handled by green solutions by 2025, and this is certainly a small step forward for the industry but a giant leap for the company.
USPS May Be Forced to Raise Third-Party Delivery Fees
The United States Postal Service may be gearing up to raise its rates for contract deliveries with companies like Amazon, UPS, and FedEx. Last month, President Trump said he would block a $10 billion emergency loan to the independent agency unless it raised its contract rates.
Trump’s reasoning is that the USPS undercharges these companies to handle their deliveries and wants them to charge “four times” its current rates. The USPS says that its rates are competitive and shouldn’t be raised. But changes within the postal service may signal that it’s caving into the President’s demands.
Louis DeJoy (yes, that’s the guy who was the finance chairman of the 2020 Republican National Convention) will be stepping in as the new Postmaster General on June 15. And, there are reports that USPS has been quietly talking to consulting firms to figure out appropriate rates for third-party contracts.
It’s another hit for USPS, which is set to lose around $13 billion by the end of the year as a result of a steep drop in personal and marketing mail due to the COVID-19 pandemic. It remains to be seen just how much the agency can withstand.
Easyship’s Take: Obviously, raising third-party prices is bad news for retailers and customers throughout the US. These rates may directly affect big companies such as Amazon or FedEx, but there’s no doubt that the price hike will be passed on. That’s when it’ll hit small businesses who rely on Amazon and FedEx’s contracts to ship, and customers, who will inevitably have to pay more for shipping.
Amazon Will Delay Prime Day in 2020, Due to Pandemic
It’s been quite the year for retail giant Amazon. The COVID-19 pandemic has caused a lot of upheaval for the company, from shutting down its warehouses in France, major shipping delays, and even having to limit its Fulfillment by Amazon service to essential goods. And now, it looks like it will have to delay Prime Day.
A hotly anticipated date on the eCommerce calendar, Prime Day is an annual shopping event typically held in July. On the day, Amazon Prime subscribers can take advantage of serious deals on the eCommerce platform. And, though it’s called Prime Day, the retail frenzy lasted 36 hours last year and could be even longer this year.
Now though, as Amazon works furiously to recover its pre-pandemic operations, it’s stated that Prime Day will probably be delayed to the fall. Insiders are saying Amazon is eyeing September as the key date, though there’s been no official confirmation so far.
Easyship’s Take: With everything Amazon’s had thrown at it by the pandemic, it’s no surprise that it wants to delay its busiest day of the year as it tries to spend the summer recuperating. But then again, Prime Day could be a significant cash injection for the company, which saw its net income fall 29% year-on-year. Certainly, people are buying online now more than ever, but perhaps Amazon worries that this year, it won’t be able to cope with the pressures of a mega sale.