In the ever-shifting landscape of global trade, supply chain leaders are navigating a complex environment shaped by policy, technology, and economic pressures. This week’s major stories highlight this intricate reality. Amazon, FedEx, and UPS are all reconfiguring their networks in response to new trade policies and a move away from low-margin e-commerce. Meanwhile, the proposed Union Pacific-Norfolk Southern merger is sparking a major debate over market competition and efficiency. Lastly, the industry is increasingly turning to advanced technologies, with John Galt Solutions introducing an “explainable AI” that builds trust and empowers human decision-making in a new era of supply chain management.
Our Top Supply Chain and Logistics Stories of the Week:
Amazon Extends 3PL Services to Walmart, Shopify, and SHEIN
Amazon has expanded its logistics services to support other major companies, including Walmart, Shopify, and SHEIN. Amazon has a wide network of supply chain infrastructure capable of onloading additional volume, including warehouses, fulfillment, freight, and customs clearance. In 2025, more than 5 billion products moved through Amazon’s logistics network, used by over 600,000 independent sellers. This opportunity helps businesses to simplify order processing and quickly set up sales channels and new online stores. The service is available in 11 countries, with deliveries made seven days per week. This is just another commercialization of its internal parcel logistics network.
FedEx and UPS Adapt to De Minimis Policy Change
The recent U.S. de minimis policy shift, which eliminated the tariff-free exemption on imports under $800, is forcing major carriers like FedEx and UPS to make strategic adjustments to their air cargo networks. The policy change, coupled with broader economic headwinds, has prompted a move away from low-margin e-commerce parcel flows toward higher-yield segments. In response, FedEx has reduced its trans-Pacific capacity and is accelerating the integration of its Express and Ground networks to boost efficiency. Meanwhile, UPS is expanding its intra-Asia air services to capture growth in regional trade while it focuses on profitability and optimizing its network to serve a mix of customer sizes. These changes underscore a critical pivot for both companies, prioritizing operational efficiency and profitability over sheer volume in a complex and evolving global trade landscape.
The Global Shipping Industry Reports Low Growth as Trade Slows
Shipping accounts for over 80 percent of the world’s merchandise for export and import, making it a critical barometer of global commerce. According to a new UNCTAD report, global maritime trade is entering a period of fragility, with seaborne trade volumes projected to rise by only 0.5% in 2025—the slowest pace in years. The report, titled “Review of Maritime Transport 2025,” highlights that geopolitical tensions, shifting trade policies, and climate pressures are the primary drivers of this volatility. These factors are forcing vessels to take longer routes, increasing costs, and disproportionately impacting developing economies. The UN is calling on governments and the industry to invest in digitalization and sustainable infrastructure to build resilience and improve efficiency in the face of these ongoing challenges.
Union Pacific- Norfolk Southern Merger Raises Concerns
The proposed $85 billion merger between Union Pacific and Norfolk Southern, set to create the U.S.’s first transcontinental railroad, has sparked a major debate in the freight industry. Proponents, including some major shippers and a key union, argue the deal will create a more efficient rail network by eliminating costly handoffs, ultimately making rail more competitive against trucking and benefiting the entire supply chain. However, opponents, including other shipper groups and unions, are raising serious concerns about the potential for reduced competition, higher costs, and a risk of service disruptions, citing a history of poor performance following past rail mergers. The fate of the deal now rests with the Surface Transportation Board, which will determine if it serves the public interest by enhancing, rather than simply preserving, competition in the market.
John Galt Solutions Expands Atlas Planning Platform’s Explainable AI to Build Trust in Supply Chain Decisions
John Galt Solutions has upgraded its Atlas Planning Platform to include enhanced “explainable AI” (xAI) capabilities. This represents a significant departure from traditional “black box” AI, as the platform now utilizes a conversational interface and Generative AI to provide the reasoning behind its recommendations. This transparency allows supply chain planners to build trust in AI-driven decisions, understand the “why” behind them, and accelerate the adoption of advanced tools for complex tasks like inventory optimization and forecasting. Ultimately, the goal is to create a more human-centric supply chain where technology empowers professionals rather than replacing them.
Song of the week:
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