Amazon

With the existing contract between global e-commerce retailer Amazon and the United States Postal Service set to expire in October 2026, media reports published yesterday indicated that there could be some shifts coming in that relationship.

2025 delivered a near repeat of 2024's volatility, with tariffs, uneven demand, political uncertainty, and shifting trade dynamics leaving logistics managers stuck in a constant state of reaction. Across every mode—trucking, intermodal, rail, ocean, parcel, and shipper operations—experts point to the same themes: excess capacity, fragile confidence, tariff-driven distortion, and a growing reliance on technology as the industry waits for clarity that never quite arrives.

The firm said that based on its estimates it expects that 2.3 million packages will be delivered over this year’s peak, representing a 5% annual gain, attributing the expected increase to one more shopping day than there was in 2024.

Amazon Shipping will add peak season surcharges from Oct. 26 through Jan. 17, 2026, the company recently announced.

Quarterly consolidated revenue, at $21.2 billion, fell 2.7% annually, and basic earnings per share, at $1.55 (short of Wall Street estimates of $1.57), fell $0.24, or 13.4%, annually. Total operating profit, at $1.8 billion, decreased 6.3% annually. 

Seattle-based global e-commerce bellwether Amazon recently announced it has it will be expanding its Same-Day and Next-Day Delivery services, with a rural focus, for tens of millions of United States-based customers located in more than 4,000 smaller cities, towns, and rural communities by the end of 2025.

Executives from San Diego-based parcel consultancy Shipware offered up some observations on this development, with Amazon and FedEx renewing business ties, following a June 2019 breakup, in which FedEx announced it made a “strategic decision” not to renew the FedEx Express U.S. contract with Amazon, as it focused on serving the broader e-commerce market.

A report stated that Amazon has tapped FedEx to be a partner for the delivery of select large packages to homes, citing an Amazon spokesman, saying the company, “has reached an agreement with FedEx to serve as one of several third-party partners to deliver packages to our customers.”

Soon after United States Postal Service (USPS) Postmaster General Louis DeJoy notified the Postal Service Board of Governors “it is time for them to begin the process of identifying his successor” on February 18, reports surfaced late last week that the White House intends to make major changes to the organization.

A culture created by Jeff Bezos encourages failure, but has led to many Amazon successes.

Workers are demanding improved wages, safety measures, and recognition from the retail giant.

A curated selection of the top 10 logistics and supply chain stories from 2024, reflecting key trends and themes identified by LM Group News Editor Jeff Berman—offering insights beyond popularity metrics to spotlight meaningful industry developments.

Companies like Amazon and FedEx are investing in autonomous drones and robots to streamline last-mile deliveries.

Global e-commerce giant Amazon  recently announced it has officially entered the for-hire air cargo market, offering space on its large fleet of cargo jets to freight forwarders and businesses. This move expands Amazon’s air logistics operations beyond its parcel delivery service and positions it to challenge airfreight giants like FedEx and UPS.

Procurement is transforming faster than ever. Cost, quality, and speed still matter. But now procurement managers are under pressure from one end of the supply chain to the other, as well as from within their own companies. This is going to take some work to tame.