Good morning readers,

The U.S. wants more aluminum made at home. There's just one problem: it still imports most of the alumina needed to make it.

Century Aluminum and Brimstone think they've found a workaround. The two companies have signed an agreement to build a fully domestic "mine-to-metal" aluminum supply chain using a new refining process that eliminates the need for imported bauxite—an effort that could reshape one of America's most import-dependent industrial supply chains.

Let's dive into today's edition.

For the past few months, we've been speaking directly with 3PL operators across the United States to understand the industry's current reality. Through first-hand accounts, conversations with logistics leaders, and extensive research, we've uncovered what's happening to small and mid-sized 3PLs, why some are struggling while others continue to grow, and the strategies helping operators navigate one of the toughest markets in years.

The result is The State of 3PLs Report 2026.

It will be released in July and will be available to all CrossDock paid members as part of their subscription.

If you value original reporting, exclusive research, and deeper insights into the supply chain and logistics industry, consider becoming a CrossDock paid member.

UPS is investing $48 million to upgrade 27 temperature-controlled facilities across the Americas, Europe, and Asia, strengthening its global cold chain network.

Why the expansion? The move is designed to strengthen its cold chain network as demand for temperature-sensitive medicines continues to surge.

The upgraded facilities will improve the handling of pharmaceuticals, biologics, vaccines, and GLP-1 weight-loss drugs that require strict temperature control throughout transit. UPS said the investment will enhance shipment speed, end-to-end visibility, and chain-of-custody capabilities.

Big Picture: The healthcare logistics market is expanding rapidly, with temperature-sensitive biologics expected to grow at an 8.3% CAGR through 2033 to reach $39.1 billion.

UPS also highlighted that healthcare generated its first-ever $3 billion quarterly revenue in Q1 2026, reinforcing the sector as one of the company's biggest growth opportunities

For years, speed made trucking the default choice for moving freight across the U.S. Now, rising trucking costs are sending shippers back to the rails.

What’s Happening? As truck capacity tightens and rates climb to their highest levels in nearly four years, more retailers and manufacturers are rediscovering intermodal transport as a cheaper alternative.

Key Numbers: North American intermodal volumes rose 6% year over year in May to around 369,000 containers and trailers per week—the strongest annual growth since March 2025, according to the Association of American Railroads.

While intermodal is slower, its lower costs and fuel efficiency are becoming increasingly attractive as fuel prices surge and trucking capacity tightens. Spot intermodal rates averaged $1.16 per mile, compared with $3.05 per mile for standard truckload freight.

Big Picture: The shift is also being supported by rail investments. Companies like J.B. Hunt and Schneider National have introduced faster intermodal services with improved reliability, while cross-border demand is growing as stricter U.S. immigration enforcement discourages some truck drivers from servicing U.S.-Mexico routes.

Industry executives believe these operational improvements could make the move to rail a lasting change rather than a temporary cost-cutting measure.

Commercial traffic through the Strait of Hormuz is beginning to recover, but global supply chains aren't out of the woods yet.

What’s Happening? While vessels are moving again following a U.S.-Iran agreement, analysts warn it could take up to three months for container shipping networks to fully normalize.

Best-case Scenario: According to Xeneta, the best-case scenario would see ocean networks recover by mid-September 2026, with spot freight rates likely to keep rising for at least another four weeks. Carriers are expected to restart cautiously, prioritizing smaller feeder services before restoring major Asia-Europe and Asia-North America routes.

What’s Next? Uncertainty remains high. Iran has introduced new transit rules requiring ships to submit passage requests 48 hours in advance and carry government-approved insurance. Although the Strait has reopened, ongoing security concerns, mine-clearing operations, and changing transit requirements mean global shippers are likely to remain cautious for months.

The U.S. is bringing artificial intelligence to the front lines of trade enforcement. As tariffs become more complex and customs scrutiny intensifies, U.S. Customs and Border Protection (CBP) is expanding its use of AI to identify tariff evasion, forced-labor risks, and other supply chain violations before cargo even reaches American ports

Key Details: CBP has partnered with trade compliance platform Tru Identity to improve shipment screening, while also expanding AI-driven enforcement tools already used to detect forced-labor exposure.

Payback: The agency recovered about $35 billion through tariff adjustments in fiscal 2025, up sharply from $667.6 million the previous year, highlighting a dramatic increase in enforcement activity. The push is further backed by $3.5 billion in new federal funding for customs technology and enforcement.

The U.S. Postal Service says it is running out of money. Postmaster General David Steiner warned Congress that USPS has a "broken business model" and is relying on employees' retirement funds to keep operations running, urging lawmakers to step in before the agency runs out of cash.

More Losses: USPS has accumulated about $120 billion in losses since 2007 as mail volumes have declined, even as it continues to maintain a nationwide six-day delivery network. Steiner noted that 70% of delivery routes lose money, 58% of the agency's 18,000 post offices operate at a loss, and six-day delivery alone costs $3.4 billion annually.

Cost Cutting: To conserve cash, USPS has suspended non-essential spending, paused employer pension contributions—saving $2.5 billion through September—and will raise the price of a first-class stamp from 78 cents to 82 cents starting July 12. Steiner is now calling on Congress to compensate the agency for unprofitable public service obligations and implement broader structural reforms.

FedEx reported a strong quarter, with revenue rising 13% year over year to $25.01 billion, beating analyst expectations of $24.04 billion. The growth was driven by higher package shipping rates, increased parcel volumes, and ongoing cost-cutting efforts, signaling continued resilience in the company's core parcel and logistics business.

The Slip: Despite the revenue gains, net profit slipped to $1.6 billion from $1.65 billion a year earlier, as FedEx absorbed costs related to the spinoff of its freight business, network optimization initiatives, and its transition to a calendar-year reporting schedule.

Tariff Refund: FedEx also announced that it will begin returning approximately $800 million in tariff refunds to customers starting in August, following the U.S. Supreme Court's decision earlier this year to invalidate the Trump administration's 2025 tariffs

U.S. logistics real estate giant Prologis had launched a £12.6 billion takeover bid for UK warehouse developer Segro, but Segro's board swiftly rejected the offer as significantly undervaluing the business.

What’s the deal? Prologis, the world's largest logistics real estate company, offered 0.084 Prologis shares for each Segro share, valuing Segro at 925p per share—a 24.6% premium to its previous closing price.

The what if: The deal would give Prologis control of one of Europe's largest warehouse portfolios, with tenants including Amazon and Netflix, while also strengthening its growing data center footprint.

No Deal: Segro called the bid "opportunistically timed," arguing Prologis was trying to capitalize on depressed UK property valuations despite the company's strong warehouse portfolio and growing data center pipeline. Following the announcement, Segro shares jumped nearly 17.5%.

Big Picture: The takeover attempt also highlights the strategic importance of logistics infrastructure. Warehouses have become critical assets supporting e-commerce, faster fulfillment, and AI-driven data center expansion

Agility Robotics, the maker of warehouse humanoid robot Digit, is going public through a SPAC merger that values the company at $2.5 billion. The deal would make it the first publicly traded company focused exclusively on humanoid robots.

Warehouse Worker: Designed to move totes and bins in warehouses, Digit is already being deployed by customers such as Amazon, Toyota, Schaeffler, and Mercado Libre. The company says demand is being driven by labor shortages, reshoring, and the need to automate repetitive, physically demanding warehouse work.

What’s Next? Agility plans to use the proceeds to scale production of its next-generation Digit V5 robot and expand commercial deployments. Backed by Amazon, Nvidia, SoftBank, and Foxconn, the company is betting that warehouse automation will be the first major commercial use case in what it sees as a $1 trillion humanoid robotics market.

The Port of Long Beach handled 842,030 TEUs in May, up 31.7% year over year, marking its third-busiest May on record and the highest container volume among North American ports for the month.

Key Details: Imports jumped 40%, exports rose 32.9%, while empty containers increased 21.8%. Despite the strong monthly performance, cargo volumes for the first five months of 2026 are up just 0.2% from last year, suggesting the recent spike reflects timing shifts rather than stronger underlying demand.

Frontloading: Port officials attributed the surge to shippers frontloading cargo to get ahead of rising tariffs, higher fuel costs, and ongoing geopolitical uncertainty. With businesses rushing inventory into the U.S. earlier than usual, the port expects an earlier-than-normal peak shipping season, with elevated cargo volumes continuing through July and August