Warehouse Wisdom, Weekly. 05/22/2026

🚚 Happy Friday!

Things are getting interesting in the world of global trade. The White House and China are now working toward establishing a new trade board focused on agriculture commitments and broader economic cooperation, which could finally inject a little predictability back into global supply chains. Of course, just as supply chain managers began breathing into paper bags a little less frequently, Amazon found itself in the hot seat again as consumers filed lawsuits claiming they weren’t refunded tariff-related costs. Apparently “added at checkout” is becoming the new jump scare for online shoppers.

In this week’s edition, we cover mounting tensions in the Strait of Hormuz, ocean freight uncertainty ahead of peak season, SMB concerns over tariffs and inflation, Walmart and Target’s continued delivery race, AI-powered shopping tools, biometric trucking technology, and even Amazon drone deliveries taking flight in upstate New York.

Let’s dive in!

Global Logistics

Hormuz heat, canal congestion, and container market chaos

Peak season may be arriving with a bit less fireworks than usual this year. Ocean carriers and shippers are reportedly delaying contract negotiations as uncertainty around demand, tariffs, and global trade flows continues to muddy the waters. Translation: nobody wants to lock themselves into pricing until they figure out whether the second half of the year will look more like a supply chain rebound or a very expensive game of cargo roulette.

Meanwhile, global energy and shipping markets are keeping a very nervous eye on the Strait of Hormuz after Iran moved closer toward formal action in the region. While diplomatic discussions between the U.S. and Iran continue, the two sides remain deadlocked on several major issues, leaving global shipping markets uneasy. Any significant disruption in the region could impact energy prices, freight costs, and supply chain stability worldwide. Because apparently logistics managers weren’t stressed enough already.

And if that wasn’t enough pressure on global shipping lanes, the Panama Canal is now nearing capacity as increased U.S. energy exports reroute through the canal amid Middle East tensions. More traffic through the canal could mean added congestion, delays, and pricing volatility for global freight movements during an already uncertain peak season environment.

Finally, the Department of Justice indicted several Chinese container manufacturers over alleged price-fixing practices, adding another wrinkle to the already fragile global container market. While the legal battle will take time to unfold, any instability involving container supply or pricing is likely to remain front and center for importers trying to manage costs heading into the second half of the year.

Supply Chain

SMBs brace for supply chain shock

Small and mid-sized businesses are feeling the pressure as tariffs, rising production costs, and shifting trade policies continue creating uncertainty across supply chains. A recent report found that many SMBs are increasingly concerned about their ability to absorb future tariff increases and supply disruptions, especially as inflationary pressures remain stubbornly high. For many operators, this is becoming less about optimizing supply chains and more about simply surviving them.

At the same time, producer prices have surged to their highest level in three years, fueled in part by ongoing global conflicts and material shortages. Rising input costs are creating additional strain on businesses already dealing with softer consumer demand and higher transportation expenses. In other words, the “everything costs more” era appears to be extending its contract.

On a slightly more optimistic note, European lawmakers backed a U.S. trade pact that includes built-in safeguards designed to provide more stability and predictability for international commerce. While the agreement won’t solve every global supply chain challenge overnight, it does signal that governments are attempting to reduce trade friction rather than add to it for a change. A rare and refreshing concept in 2026.

Logistics Vitals

E-commerc growth looks strong…until you read between the lines

E-commerce may have technically extended its growth streak to 10 consecutive quarters, but the underlying numbers tell a much softer story. While online sales continue climbing, inflation, aggressive discounting, and marketplace fees are doing a lot of the heavy lifting behind the scenes.

• 10 consecutive quarters – Length of the current e-commerce growth streak

• 3.6% – Estimated year-over-year e-commerce growth rate, showing slower expansion compared to prior post-pandemic years

• 40%+ – Share of Amazon’s total revenue now coming from seller services and advertising rather than direct product sales

• 50%+ – Portion of many retailers’ online sales tied to discounted or promotional purchases during recent quarters

• 2 straight years – Length of time consumers have significantly reduced discretionary product spending growth compared to inflation-adjusted trends

• 2026 peak season – Period many analysts now expect to remain softer than originally forecast due to cautious consumer demand

Online Marketplaces

Retail giants double down on faster delivery and AI shopping tools

The battle for online shoppers continues escalating, and retailers are leaning heavily into speed and AI to keep consumers clicking “buy now.” Walmart credited faster delivery capabilities and continued growth in its third-party marketplace as major drivers of recent revenue gains, proving once again that convenience remains undefeated in modern retail. If consumers can get it delivered faster than they can drive to the store themselves, that’s apparently considered a competitive advantage now.

Target is seeing similar momentum on the omnichannel front, with online sales continuing to grow as the retailer invests heavily in fulfillment and digital capabilities. The company’s ability to blend stores with fulfillment operations continues proving that brick-and-mortar locations still matter quite a bit when they double as mini distribution centers.

Meanwhile, Google officially entered the “agentic commerce” conversation with the launch of its universal shopping cart initiative. The new tool is designed to help consumers seamlessly shop across multiple retailers with AI-powered assistance handling portions of the purchasing journey. In other words, AI may soon be impulse buying products for consumers before they even finish overthinking the purchase themselves.

Warehouse Tech

Biometric truckers and more drone deliveries

The logistics industry continues marching deeper into the world of automation and identity verification. The U.S. Department of Transportation recently launched a biometric trucker registry utilizing technology from IDEMIA and CLEAR, aiming to improve identity security and reduce fraud within the trucking industry. While the move could streamline verification processes and strengthen compliance, it also means truck drivers may soon spend almost as much time scanning their eyeballs as they do scanning shipping paperwork.

Meanwhile, Amazon is continuing to expand its drone delivery ambitions, with new drone delivery operations slated for upstate New York. The expansion highlights how seriously major retailers are taking alternative delivery methods as they search for faster and more cost-efficient last-mile solutions. Of course, there’s still something slightly unsettling about hearing a mysterious buzzing noise outside your house and realizing your paper towels have officially arrived from the sky.

Warehouse Quick Deliveries

FedEx spins off freight, USPS tweaks pricing, refrigerant rules ease, and more…

• FedEx approves trucking business spinoff

• USPS aligns dimensional pricing closer to FedEx and UPS

• White House eases refrigerant regulations impacting logistics operations

• Mark Carney warns of growing Canadian trade and economic risks