Podcast Summary: "Breaking News Now: E-Commerce Shake-Ups with Max Garland"

Podcast: Supply Chain Now
Episode Air Date: October 1, 2025
Host: Scott Luton ("B")
Guest: Max Garland, Senior Reporter at Supply Chain Dive ("C")

Episode Overview

In this episode of Supply Chain Now, Scott Luton sits down with Max Garland of Supply Chain Dive to discuss the latest shake-ups in e-commerce and logistics, including innovations, new carrier expansions, rising shipping costs, and regulatory changes. Max shares insights from five recent stories he’s reported on, focusing on developments at Target, FedEx, regional carriers like OnTrac and Veho, and the international impact of the end of the U.S. de minimis exemption. The conversation provides sharp analysis for shippers, retailers, and logistics professionals navigating this dynamic landscape.

Key Discussion Points & Insights

1. Target’s Push into Next-Day Delivery (Starts at 03:07)

• Announcement: Target plans to roll out next-day delivery to the top 35 U.S. metro areas by the end of October 2025, with 20 more markets joining in 2026.
• Motivation: Target is seeking to boost lagging sales and compete more directly with Walmart and Amazon, who already offer robust next-day options.
• Operational Shift: Improved delivery routing and demand forecasting allow for order windows as late as 6pm; Target is also consolidating in-store order fulfillment.
• Impact: Potential to enhance both e-commerce and in-store shopping experiences.
• Quote:
  • Max Garland (03:07):
    “A big reason why Target can do this now is they're getting better when it comes to delivery routing, demand forecasting... So it can be really quick.”

2. FedEx 2026 Rate Hike and Surcharges (05:49)

• Overview: FedEx announced a 5.9% average rate increase for 2026, along with higher surcharges for larger and remote area deliveries—an annual tradition for major carriers.
• Business Impact: Rising logistics costs create mounting pressure on retailers and shippers, fueling concerns as consumer confidence fluctuates.
• Industry Context: This follows a trend of record-high ground shipping rates in recent quarters.
• Quote:
  • Max Garland (05:49):
    “FedEx was the first to announce its 2026 rate increase... Takes effect in January, affects a bunch of U.S. services. There are going to be surcharge increases too... This just adds to that pressure.”

3. Emerging Alternatives: OnTrac’s Network Expansion (07:08)

• OnTrac Moves: Launching express two- to three-day shipping (with ClearJet partnership) and a deferred ground shipping option aimed at cost-sensitive, less urgent deliveries.
• Pilot Programs: Some customers are currently piloting these services; broader rollout expected next year.
• Carrier Diversification: Regional carriers like OnTrac present growing competition to UPS/FedEx thanks to enhanced technology and customer experience focus.
• Quote:
  • Max Garland (08:18):
    “A lot of these carriers now are very tech forward... They see that often as a differentiator with some of the big guys... translates to better end customer experience.”

4. Tech-Driven Regional Carrier Expansion: Veho in California (10:12)

• Expansion: Veho, a last-mile regional carrier, has entered the Southern California market, adding coverage for 8 million more potential customers.
• Strategic Priority: California is a high-priority market due to dense population and e-commerce demand; Veho aims to cover every major metro within two years.
• Tech & Metrics: Veho boasts an on-time delivery score of 99%+ and a customer rating of 4.9/5, emphasizing the importance of reliability and visibility.
• Quote:
  • Max Garland (12:18):
    “Having that delivery reliability, making sure the end customer knows where their package is... is key because as an E Commerce brand... that reflects on you too.”

5. International E-Commerce and the End of U.S. De Minimis Exemption (14:19)

• Policy Change: The longstanding de minimis exemption for low-cost imports ended abruptly; now, duty/tariff must be collected on parcels from overseas.
• Widespread Disruption: Sellers from platforms like Temu, Shein, and even marketplaces on Etsy and eBay, now face new costs and complexity.
• UPU Response: The Universal Postal Union is facilitating “delivery duty paid” services to help international shippers resume U.S.-bound deliveries.
• Peak Season Concerns: The change could cause disruptions during Q4’s holiday peak, with increased costs potentially passed to consumers or requiring operational overhauls.
• Quote:
  • Max Garland (14:19):
    “De minimis exemption ended last month... now a lot of sellers that didn't typically have to worry about tariffs or customs complications, now they do.”

Notable Quotes and Memorable Moments

• On Regional Carrier Tech Competition

  • Max Garland (09:37):
    “These carriers are trying to help shippers get to that level or at least compete with that level because it's so essential nowadays.”

• On Customer and Team Expectations

  • Scott Luton (12:46):
    “Team members and the top talent... are also more and more expecting us to do things like it's 2025 or 2035 versus being stuck in the old ways.”

• On Potential Policy Reversal for De Minimis

  • Max Garland (15:47):
    “It's certainly possible. It's on the table... I think it depends on how supply chains and consumers will pressure regulations to change or get back to, as you noted, the way things work.”

• Reflection on the Dynamics of E-commerce Loopholes

  • Scott Luton (17:13):
    “You gotta admire that entrepreneurial approach... figure out what the rules of the game are... and then land and expand.”

Important Timestamps

• 03:07: Target’s next-day delivery expansion: details and implications
• 05:49: FedEx 2026 rate increases and industry cost pressure
• 07:08: OnTrac’s new services and regional carrier emergence
• 10:12: Veho expands into California; regional carrier growth
• 14:19: End of U.S. de minimis exemption; impact on cross-border e-commerce
• 18:37: Max’s top trend to watch for Q4/peak season: de minimis fallout
• 20:09: Where to find Max Garland’s reporting and connect with him

Closing Insights

• The e-commerce and logistics industry is navigating a period defined by rapid technological advancement, rising costs, intense carrier competition, and fast-shifting policy landscapes.
• Regional carriers, empowered by investments in tracking and customer service, are challenging legacy giants, giving shippers new options.
• Regulatory changes, such as the end of the de minimis exemption, are causing immediate disruptions with potential to reshape peak season strategies.
• Both shippers and talent demand modern solutions—technology investment isn’t just optional, it’s a competitive and recruitment necessity.

Further Resources

• Read more: Links to Max Garland’s original stories (visit Supply Chain Dive)
• Newsletter: Subscribe to Supply Chain Dive’s daily newsletter for ongoing updates
• Engage: Follow Max Garland on LinkedIn for insights and analysis

If you’re an e-commerce leader, logistics practitioner, or supply chain watcher, this episode offers actionable news, sharp perspective, and a roadmap to navigate 2025’s biggest challenges and opportunities.