📦 Warehouse Wisdom. Weekly.
Logistics news for SMBs. Picked, packed, and delivered without the bias.
INTRODUCTION / JULY 17 2026
Happy Friday!
Geopolitical tensions escalated after U.S. forces fired on an Iran-bound tanker, raising fresh concerns about the security of key shipping lanes and the potential for higher transportation costs if disruptions spread throughout the Middle East.
At the same time, there are encouraging signs closer to home. After several quarters of slowing development, U.S. warehouse construction is gaining momentum again as developers respond to improving market conditions and continued long-term demand for modern distribution space. While speculative building remains measured, the renewed investment signals growing confidence in the industrial real estate sector and the future of warehousing.
Also in this week's newsletter, we'll cover new tariff developments affecting global trade, growing threats to Red Sea shipping, record cargo volumes at the Ports of Los Angeles and Long Beach, Amazon's latest fulfillment and AI updates, June retail sales, and several quick-hit stories impacting transportation and logistics.
Let's dive in!
GLOBAL LOGISTICS
Red Sea threast, more tariff news, port surges, and an arctic shortcut
Iran has reportedly instructed Houthi forces to prepare for the possible closure of the Bab el-Mandeb Strait if the U.S. targets Iran's power infrastructure. The narrow waterway connects the Red Sea to the Gulf of Aden and serves as one of the world's busiest shipping corridors. Any disruption could force vessels to reroute around the Cape of Good Hope, increasing transit times, fuel costs, and freight rates.
The U.S. announced a new 25% tariff on imports from Brazil, adding another layer of uncertainty for businesses sourcing products and raw materials from South America. Companies that rely on Brazilian goods may experience higher costs, prompting many importers to reassess supplier relationships and inventory strategies.
The Ports of Los Angeles and Long Beach posted another strong month as retailers accelerated imports ahead of potential tariff changes and the holiday shipping season. The increased cargo volumes suggest many companies are continuing to front-load inventory to reduce future supply chain risk while ensuring products are positioned well before peak demand.
After receiving significant feedback from businesses and trade groups, the White House backed away from a proposed 20% tariff that would have affected a broad range of imported goods. While the decision provides short-term relief, the continued uncertainty surrounding trade policy reinforces the importance of maintaining flexible sourcing strategies.
China has launched its first scheduled weekly container shipping service through the Arctic to Europe, creating an alternative route to traditional Asia-Europe trade lanes. While seasonal limitations remain, the service highlights how carriers are exploring new shipping options to reduce transit times, improve network flexibility, and diversify away from increasingly volatile trade routes.
A MESSAGE FROM THE PUBLISHER
A quick note
Outside of this newsletter, I help logistics and e-commerce companies solve growth challenges. Whether that’s warehouse leasing, choosing the right 3PL, or buying and selling logistics and e-commerce businesses, I’d be happy to help.
Just reply to this email if you’d like to talk.
WAREHOUSE AND FULFILLMENT
Amazon adjusts for peak season and rapid delivery becomes the norm
Amazon has released its 2026 holiday fulfillment fee schedule and is encouraging sellers to ship inventory earlier than usual to help ensure products are received and available before peak demand begins. Businesses that rely on Fulfillment by Amazon (FBA) should review the updated fees and begin planning inventory now to avoid potential delays and higher costs during the holiday season.
According to a new industry report, rapid grocery delivery has evolved from a convenience into a mainstream shopping option. As consumers continue to expect faster delivery windows, retailers and logistics providers are expanding fulfillment capabilities, investing in localized inventory, and optimizing last-mile operations to meet growing demand.
A new study revealed that Amazon's AI-powered shopping experience is changing how customers discover products. Rather than relying primarily on traditional search rankings, AI is increasingly recommending products based on context and customer intent. For sellers, this shift means product content, images, and overall customer experience may become even more important as AI plays a larger role in purchase decisions.
WAREHOUSE QUICK DELIVERIES
Quick hits from around the warehouse
Trucking costs continue to outpace inflation.
TL & LTL rates expected to climb in Q3.
Antwerp terminals temporarily shut down following a hazardous chemical spill.
THE FULFILLMENT ADVISOR NEWS
WarehousingAndFulfillment.com is now TheFulfillmentAdvisor.com
For more than 20 years, WarehousingAndFulfillment.com has helped brands find their ideal third-party logistics (3PL) partners through unbiased, data-driven matchmaking.
Today, we’re proud to introduce our next chapter: TheFulfillmentAdvisor
After two decades in the industry. we felt it was time for a creative refresh that better reflects our expanded capabilities. In addition to continuing our unbiased 3PL matchmaking services, we are now licensed to provide:
Commercial real estate services
Full-scale business brokerage services
LOGISTICS VITALS
Retail sales inch higher in June
U.S. retail sales increased modestly in June, suggesting consumers continue spending despite ongoing inflation concerns and uncertainty surrounding tariffs. While the gains were moderate, the data points to continued resilience in consumer demand, providing a positive signal for retailers, distributors, and warehouse operators heading into the second half of the year.
Retail sales increased 0.6% in June, following a 0.9% decline in May.
Excluding automobiles, retail sales rose 0.5%.
Core retail sales, which feed into GDP calculations, increased 0.5%.
Building material and garden equipment sales climbed 0.9%.
Online retail sales increased 0.4%.
Economists continue to expect consumer spending to remain a key driver of economic growth during the second half of 2026.
A QUICK WORD FROM US
Stop Playing Warehouse Matchmaker Roulette
We match businesses with thoroughly vetted 3PL warehouse and fulfillment companies - with try no fee for the outsourcer (unlike others that promise but charge under the table commissions). We are truly unbiased.
"Developers hit pause for two years and now they're hitting play again, but this time they're following demand, not chasing it."
