The Extra Mile Newsletter #3

Top takeaway

LTL freight classifications are changing! Classification (and charges) is based on density of freight: heavier items are more expensive to ship, but increased volume is a pricing factor as well. This means a single pallet of bowling balls will be priced differently than a single pallet of pillows, even if both weigh 1000 pounds (in short, because the pillows take up more space). Freight carriers are simplifying pricing and that will make high volume, low density goods like pillows more expensive to ship. Since density of higher volume goods will have more effect in the new calculation, optimizing your brand's packaging will be the clearest way to keep your costs down. So find a way to fit more items in those case packs.

Two great reads:

How changes will impact shippers

C.H. Robinson is using AI agents to navigate reclassification 

What we’re reading

1. US Steel Producers Raise Prices After Trump Tariff on Imports - About a fifth of steel sold in the US is imported. Since tariffs have risen from 25% to 50%, producers are passing those costs on to buyers. For example, Daimler truck increased the price of a school bus by $3500 (on average it's $100,000). These increases mean higher costs for consumers, possible lower sales on affected products, and an incentive for manufacturers to produce domestically.
2. How to Get Your Content Recommended by LLMs - Online marketing is no longer just optimizing for (physical) eyeballs and clicks. AI generated summaries and content are likely what your customer is going to see first when searching for your product. To ensure your site and items show up in this new and still shifting content, include your data sources (to enable the AI generated content to be accurate). Update your data more regularly so the AI sees it as recent. Create content that AI will see as organic, unique, and trustworthy. And keep up the SEO, just realize there might be an agent between you and the customer that you have to optimize for, too.

One thing to follow

UPS revised its Ground Saver (formerly SurePost) service eligibility in June. If you like using this service to save money on low-cost, lightweight packages that can ship a little slower, you'll want to be aware of how this affects your shipping mix and maybe consider alternatives. High volume shippers can negotiate these rates, while lower volume shippers need to abide by the rules to avoid surcharges and penalties - they could also see their packages reclassified into a higher tier of shipping or rejected.