The U.S. Postal Service has inked a multi-year contract valued at more than $10 billion to continue providing last-mile parcel delivery service for DHL eCommerce, which specializes in cross-border and domestic B2C shipping services for e-commerce merchants, the organizations announced Thursday.

Injecting parcels downstream into the postal system near letter carrier routes is more efficient for parcel consolidators like DHL eCommerce (XETRA: DHL) because the Postal Service already has the infrastructure to reach every home and address in the country.

The outsourcing deal bolsters Postmaster General David Steiner’s strategy of pumping up revenue rather than simply cutting costs to stabilize the postal agency’s finances after years of heavy losses. In fiscal year 2025, the U.S. Postal Service had a net loss of $9.5 billion. 

Steiner on Tuesday placed a freeze on nonessential spending, such as hiring and travel, to avoid running out of cash earlier than expected after warning Congress that the agency faced a potential cash crisis within 12 months. The website 21st Century Postal Worker posted Steiner’s memo to staff members and Federal News Network was first to report on it.

DHL eCommerce’s deal follows Amazon’s agreement in early April to retain the Postal Service for last-mile delivery, albeit at 20% less annual volume than in the previous contract as Amazon expands its own ability to cost-effectively deliver in rural areas. Amazon paid the USPS $6 billion per year under the previous contract — about 7.5% of the Postal Service’s total revenue. 

The Postal Service’s three largest customers for last-mile services, which includes UPS, bring in more than $8 billion in revenue each year, Steiner said during a virtual media briefing. 

“We want to continue to grow out that last mile network to make it more efficient, make it faster, make it cheaper for our customers,” he said, adding that the USPS also has middle-mile and first-mile pickup capabilities available for companies that need end-to-end shipping, including returns..

Earlier this year, Steiner initiated an auction to solicit bids from a broader base of retailers and logistics companies interested in the national post delivering their parcels on the final leg to homes and businesses after changing back the rules so shippers have flexibility to drop loads at the post office level instead of upstream distribution centers. The Postmaster General argued that the organization has for too long undercharged for its most valuable asset, the last-mile network.

“We are going to tailor our network to the needs of our customers rather than telling our customers to change their business to meet the needs of our network,” he said Thursday.

Although DHL didn’t have to bid for access to the USPS’s last-mile network, the auction process did inform how the arrangement was structured.

“Through the Last Mile solicitation process, we gained significant insight into market demand and customer needs. That initiative helped validate the value of our network and highlighted opportunities to create more flexible pricing and operational models tied to our evolving last-mile infrastructure. The DHL agreement reflects many of those learnings,” Steiner said in a statement to FreightWaves.

Officials did not disclose the duration of the contract, but said it was the longest and most scalable contract the Postal Service has ever had with DHL over 25 years. The $10 billion value is also seen as a baseline, which they expect will grow much higher over the contract’s term.

DHL’s postal consolidation model

The e-commerce logistics division of Germany-based DHL Group said extending the Postal Service partnership will help it handle growing volumes as shoppers increasingly order merchandise online or on mobile devices and enable it to expand in the U.S. market. It also increases the company’s ability to move heavier packages. DHL eCommerce specializes in packages that weigh one to eight pounds because that is where it can be most cost effective.

DHL eCommerce handles nationwide pickup, sortation across 19 fully automated hubs, and linehaul through its air and ground network before handing pre-sorted containers to the USPS to complete the final mile for all deliveries. With its universal service mandate, the Postal Service reaches more than 41,550 zip codes and more than 170 million locations six days a week.

The length of the agreement is the key difference from the past, said Scott Ashbaugh, CEO of DHL eCommerce Americas, during the briefing. “Really for the first time, we’ve got a multiyear agreement. And that allows us more predictability and gives confidence to our clients that over the long term they’re in a good place with our solution.” That gives DHL “the ability to extend longer term agreements with our clients and have them feel comfortable to shift their volume from wherever they may be into the DHL and USPS networks.” 

Ashbaugh explained the benefits of work sharing with the Post Service on the eCom Logistics podcast last June.

“Our expertise is that middle mile. We spent hundreds of millions of dollars building out that network and have the scale to keep it full. And that gives us quite an advantage. []As for the last mile], that USPS truck is going to every house every day. I struggle to see how it is more effective to put a new truck or car on the road to your personal address when there’s already a truck there.”

DHL eCommerce wasn’t a fan of former Postmaster General Louis DeJoy’s decision forcing parcel shippers to inject loads at centralized processing centers because it benefitted smaller operators, Ashbaugh added.

“We were going to 10,000 destination delivery units (post offices and regional hubs) every day, and you’ve got to have scale and quite a sophisticated operation to get there. So pulling us back one step to maybe 200 entry locations is a little easier to replicate,” he said.

Click here for more FreightWaves/American Shipper stories by Eric Kulisch.

Write to Eric Kulisch at ekulisch@freightwaves.com.

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A fresh wave of manufacturing and supply chain investments is sweeping across the U.S.

Over the past several weeks companies announced more than $3.6 billion in new projects ranging from automotive assembly lines and steel processing centers to dairy production plants and electric bicycle factories.

The announcements underscore continued momentum in domestic manufacturing as companies seek to strengthen supply chains, expand production capacity and move operations closer to customers.

Among the largest investments is Toyota’s proposed $2 billion expansion at its manufacturing complex in San Antonio, Texas. According to filings cited by Reuters, the automaker is seeking approval to build a new vehicle assembly line known internally as “Project Orca.”

Construction on the Toyota expansion could begin later this year, with production slated to start in 2030. The project is expected to create approximately 2,000 jobs.

MISUMI launches Americas division backed by $1 billion investment vision

Japanese industrial supplier MISUMI Group announced the launch of MISUMI Americas, a new manufacturing and supply chain organization.

The investment combines the company’s industrial components business with the AI-powered digital manufacturing capabilities of Fictiv. The move is supported by a broader $1 billion global investment initiative aimed at accelerating growth and expanding operations in North America.

MISUMI Americas will provide engineers and manufacturers access to standard, configurable and custom-fabricated parts through a unified sourcing platform designed to shorten production cycles and reduce supply chain complexity. 

The company said it will leverage manufacturing hubs across the U.S., Mexico, China, India and Japan while increasing investments in advanced manufacturing and artificial intelligence.

Dave Evans, the first American appointed CEO of MISUMI Americas, said the company intends to transform traditional supply chains into “self-optimizing production systems” powered by AI and digital manufacturing tools.

Walmart opens $350 million milk processing plant in Texas

Retail giant Walmart (Nasdaq: WMT) celebrated the opening of its third company-owned milk processing facility in Robinson, Texas, representing an investment of more than $350 million and creating over 400 jobs. 

The 300,000-square-foot facility will process milk sourced from regional dairy farms and supply more than 650 Walmart and Sam’s Club locations across the South Central U.S.

Walmart said the facility will strengthen supply chain resiliency while reducing the time between dairy farms and store shelves. The investment also supports the company’s broader commitment to invest $350 billion in products made, grown or assembled in the U.S. by 2031.

XPEL expands San Antonio footprint with $110 million investment

San Antonio-based XPEL announced approximately $110 million in manufacturing and supply chain investments.

The investment includes the purchase of a four-building campus totaling roughly 435,000 square feet that will serve as the company’s North American manufacturing and operations hub.

XPEL (Nasdaq: XPEL) is a global provider of protective films and coatings

The company plans to consolidate operations into the facility over the next two years while expanding in-house manufacturing capabilities. XPEL also announced the acquisition of a manufacturing facility in China to support growth in international markets.

Arkansas lands energy and steel manufacturing projects

Arkansas secured two notable industrial projects during the past month.

Italian-based CEP USA opened its first U.S. manufacturing facility in North Little Rock, investing nearly $1 million in a plant that will produce prefabricated electrical substations. The facility is expected to create approximately 27 jobs over the next five years.

Meanwhile, steel processor Ferrosource is nearing completion of a $70 million processing facility located directly on U.S. Steel’s Big River Steel Works campus in Osceola. 

New York-based Ferrosource said operations are expected to begin in August and support more than 40 direct jobs and over 100 total jobs statewide. The facility will provide steel processing services for manufacturers across the Midwest and central U.S. while eliminating inbound freight costs through its mill-campus model.

Tennessee wins electric bicycle manufacturing hub

LEV Manufacturing announced plans to establish its first Tennessee operation in Algood, creating 288 jobs and investing $7 million in a 100,000-square-foot assembly, logistics and distribution facility. 

The plant will serve as a central hub for production and distribution of Rad Power Bikes, Serial 1 and Life EV electric bicycles.

Company executives said the project supports a broader strategy to expand U.S.-based manufacturing while collaborating with Tennessee research institutions on battery technology, product innovation and workforce development.

U.S. factories lose over 2,000 jobs in April

Despite the flurry of new manufacturing investments, federal employment data suggests the sector remains under pressure. 

The U.S. manufacturing industry lost 2,000 jobs in April, according to the Bureau of Labor Statistics, even as total nonfarm payrolls increased by 115,000 positions nationwide. 

Within manufacturing, the motor vehicles and parts sector—which includes vehicle assembly plants, trailer manufacturers and motor vehicle body and parts producers—shed 3,000 jobs during the month after adding 2,000 jobs in March and 5,100 jobs in February. 

At the same time, the Institute for Supply Management’s Manufacturing PMI remained in expansion territory at 52.7%, marking the fourth consecutive month of growth, with transportation equipment among the largest manufacturing industries reporting expansion. 

However, ISM’s employment index fell to 46.4%, signaling continued contraction in factory hiring, while survey respondents cited geopolitical uncertainty, tariffs and rising fuel costs as headwinds.

“Demand for manufactured goods is trending higher versus last year; however, geopolitical uncertainty and rising oil and diesel prices continue to weigh on demand,” one transportation equipment manufacturer told ISM. 

The mixed signals prompted concern from manufacturing advocates.

“I continue to be bullish on the future of American factory jobs with so much investment and construction underway in the sector, but the shocks caused by the conflict with Iran and efforts to accommodate China present significant headwinds,” Alliance for American Manufacturing President Scott Paul said in a news release.

Investment Snapshot

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Federal regulators on Thursday accepted the merger application submitted by Union Pacific and Norfolk Southern, on the condition that the railroads submit more information for review by July 27.

Much of that information concerns the environmental impact of the merger.

Shares of the companies were down about 5% on the news.

The STB’s 42-page decision (PDF) comes after UP (NYSE: UNP) and NS (NYSE: NSC) in April filed a revised application following the agency’s rejection of the initial paperwork in January.
“We are confident this merger will deliver more reliable and lower-cost transportation options for American businesses,” said Union Pacific Chief Executive Jim Vena, in a statement. “We submitted a comprehensive, data-driven application backed by a detailed plan for seamless integration. We look forward to the opportunity to show the facts and demonstrate the benefits for our customers, employees and America.”

The companies say the proposed transcontinental railroad will speed up the movement of freight by eliminating handoffs between railroads, convert 2.1 million truckloads to rail annually, and kickstart reindustrialization across a 53,000-mile network. 

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Read more articles by Stuart Chirls here.

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The post BREAKING: STB conditionally accepts UP-NS rail merger application, wants more data appeared first on FreightWaves.

Maersk, the world’s second-largest container carrier, this week denied a report that one of its ships recently transited a critical Middle East shipping route. 

A report by British analyst Drewry said a Maersk vessel transited the threatened Red Sea-Suez Canal trade lane the week of May 17.

“We cannot confirm what you are hearing and what Drewry is apparently reporting,” said Maersk (OTC: AMKBY) spokesman Jesper Lov, in an email to FreightWaves.

Major container lines and tanker operators have mostly avoided the route since late 2023, when Houthi rebels in Yemen attacked shipping in support of Gaza. The largest ships connecting Asia with the Mediterranean, Europe and North America have been diverted voyages around Africa, adding as much as two weeks’ sailing time to a typical voyage. 

The Red Sea crisis reset global shipping, with the diversions from it and the Strait of Hormuz absorbing the equivalent of 2 million containers in annual capacity. 

Suez Canal traffic and toll revenue were both higher in early 2026 than in the same period of 2025, but they were still far below pre-crisis levels. From January 1 to February 8, 2026, the canal handled 1,315 vessels and earned $449 million, versus 1,243 vessels and $368 million in the same period of 2025. Canal revenue in 2024 had fallen sharply to about $4 billion from $10.25 billion in 2023, showing how severe the Red Sea disruption had been.

The diversions have come with new dangers. There have been four confirmed hijackings this year off the coast of Somalia, according to the International Chamber of Commerce Commercial Crime Service, with three ships and their crews still held captive. 

The frequency and intensity of the attacks on Red Sea vessels waned in 2025 as Houthi sponsor Iran was overwhelmed by its own domestic troubles. Major liners tested a return to the Red Sea earlier this year only to see their plans upended by the war in Iran, and more threats by the Houthi. 

Read more articles by Stuart Chirls here.

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Former Yellow Corp. employees could finally receive payment for unused vacation and accrued sick leave, almost three years after the less-than-truckload carrier ceased operations. However, some hurdles remain to be cleared, according to a Wednesday memo from the Teamsters to Yellow’s local unions.

A federal bankruptcy court in Delaware approved a final liquidation plan in November, calling for the proceeds from the sale of Yellow’s assets to be placed in a liquidating trust. The transition is now expected to occur in June or July. (Employee claims were classified as priority by the plan and are required to be paid.)

However, the parties still haven’t reached a settlement on the value of the claims. Also, Yellow’s largest shareholder, hedge fund MFN Partners, appealed a pension withdrawal liability settlement, but the memo said the final bankruptcy plan can still move forward.

“Throughout 2025 and 2026 the Teamsters have engaged with Yellow in settlement negotiations related to the Union’s contract-based claims against Yellow,” the memo said. “These claims include accrued and unused paid-time-off as well as individual and group grievances. While substantial progress has been made on agreeing to the amounts of these claims that should be allowed, there are a few disagreements on valuation that still must be resolved.”

The liquidating trustee will be responsible for resolving remaining claims and making distributions to creditors, including former employees. The memo noted that the bankruptcy court will need to approve any settlements reached between the Teamsters and the trustee. It also said other creditors of Yellow’s estate can object to any settlement reached or appeal any settlement the court approves.

Funds managing Yellow’s healthcare and pension plans have entered separate claims for unpaid contributions.

An April operating report for Yellow’s estate showed a $601 million cash balance.

Last year, the court denied WARN Act claims against Yellow, alleging the company failed to provide adequate notice ahead of mass layoffs. However, the Teamsters appealed the decision and are awaiting the outcome of the appeal.

“The Teamsters will attempt to settle with the Liquidating Trustee any remaining contract claims as well as the WARN claims,” the memo said.

The memo told former employees to keep their addresses updated with their local unions. The trustee is expected to distribute future payments via direct deposit or by mail for members who have since closed their bank accounts.

More FreightWaves articles by Todd Maiden:

• Broker liability ruling: Carriers, brokers, analysts weigh in
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• TL linehaul rates surge in April, Cass says

The post Could Yellow Corp. workers finally get paid? appeared first on FreightWaves.

Union Pacific refuted claims by top law enforcement officials of six red states this week that it failed to provide required information when it filed a revised application with federal regulators for its merger with Norfolk Southern.  

In a Tuesday filing with the Surface Transportation Board, the Covington law firm said that the railroads met their obligations for additional information on:

• Market shares incorporating projected traffic growth for the postmerger UP (NYSE: UNP) and NS (NYSE: NSC) as required by the Board
• Downstream post-merger effects 
• Planned divestment of its shares of the Terminal Railroad Association of St. Louis and the Kansas City Terminal Railway 
• Use of their partial ownership of railcar pool TTX for non-competitive purposes

“[I]f the attorneys general independently review the merits [of the merger in the revised application], “they will recognize this end-to-end transaction will produce substantial pro-competitive benefits for shippers in the states they serve,” the letter said. UP added that competitors are fighting the proposed transaction “because they understand they will face much stronger competition from a merged UP/NS.”

The partners pushed back at the AGs’ claims that the STB again rejecting the application as incomplete again would not advance President Trump’s policies. 

“[T]he proposed transaction will directly advance the administration’s policies of reindustrialization and affordability…[and] transform the U.S. supply chain, enhance American competitiveness, and energize virtually every sector of the economy.”

The STB is expected to rule on the updated application this week. In recent merger history dating to the 1990s, no merger application has been rejected twice.

Read more articles by Stuart Chirls here.

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The post UP refutes new AG claims, says it provided all answers in merger paperwork appeared first on FreightWaves.