March Madness: America’s Timber, Speedy Mail & Freight’s Frozen Spring

By FRAYT

Uncle Sam wants YOU ... to use American lumber. As President Trump hammers home national security with timber-focused executive orders, the construction industry braces itself. Meanwhile, USPS races ahead with Priority Next Day service, leaving FedEx and UPS concerned, while freight numbers crawl to pandemic-era lows. On the bright side, Motion Industries expands its West Coast footprint by acquiring Thompson Industrial Supply. And despite retailers rushing imports ahead of tariffs and labor disputes, warehouses nationwide remain unfazed, putting their COVID lessons to good use. Let’s dig in.

Timber Industry Faces Supply Chain Overhaul: National Security in the Balance

President Trump’s twin executive orders just declared domestic timber a national security priority and triggered a 12-month sprint to review America’s wood supply chain. Federal departments now race against the clock to slash foreign lumber dependence — be it through tariffs, quotas, or permit reforms — all while protecting the military’s $10 billion construction budget.

Knock on Wood: Uncle Sam Wants Your Lumber

The Commerce secretary’s 270-day countdown to complete the Section 232 review to expose the foreign lumber tactics that splinter American timber interests begins now. Especially with the military dropping over $10 billion yearly on construction and betting on innovative products like cross-laminated timber, the administration calls it an urgent national security matter. Construction companies smelled the sawdust early, frantically stockpiling materials in January and rewriting contracts at warp speed to protect against price hikes. 

Barking Up the Right Tree 

Though America sits on “more than adequate” timber resources, the administration blames “heavy-handed federal policies” for keeping them locked up. Interior and Agriculture chiefs now have 12 months to chainsaw through red tape clogging permits and forest management. Trump’s dual strategy to block foreign wood while unleashing American lumber certainly has construction firms on notice watching like hawks — it could be either sweet relief or another market headwind, depending on which side of the saw you’re standing.

USPS Cranks Up Delivery Speed: Priority Next Day Hits the Streets

Look who just strapped a rocket to their mail trucks. USPS has launched Priority Next Day, offering guaranteed overnight delivery for packages up to 20 pounds in 54 markets to 67 million customers. The service promises next-day delivery within 150 miles of distribution centers, and they’re just getting started — USPS plans to eventually serve this speedy option to a feast of 295 million people daily.

Speed Demons: USPS Joins the Overnight Club

Look out, FedEx and UPS – USPS isn’t playing around with Priority Next Day. Millions of Americans now have access to genuine next day delivery without the premium pricing that’s long been the industry standard. Postmaster General Louis DeJoy is making a strategic bet on this direct-to-shipper approach by eliminating the middlemen consolidators that previously handled much of their package volume. 

The Package Wars Heat Up

USPS is flexing its federal muscles in the overnight delivery market, and competitors are already scrambling to respond to this new threat. UPS wasted no time yanking SurePost volume back in-house, which directly contributed to USPS’ January package volume dropping by 8.1%. But here’s the fascinating twist: Despite shipping fewer packages, revenue remained flat — suggesting higher-value shipments are filling the gap. Online retailers previously trapped between the “cheap but slow” and “fast but expensive” shipping dilemma now have their perfect middle ground in Priority Next Day and industry giants have no other choice but to nervously watch in their rearview mirrors. Say goodbye to the old “snail mail” jokes. 

Freight Growth Crawls Forward Like a Turtle with a Broken Leg

The promised land of freight recovery seems like a mirage that keeps moving farther away. January kicked off 2025 with a thud rather than a bang — shipments plummeted 5.3% from December and sat 8.2% below January 2024 levels. We haven’t seen shipment numbers this low since July 2020 and the 2008-09 Great Recession.

Private Fleets Hoard the Pie While For-Hire Carriers Stare at Empty Plates

Why are freight numbers so dismal? The answer lies in pandemic-era self-defense. When shipping rates skyrocketed (2020-2022), burned manufacturers and distributors built their own private fleets — what ACT Research’s Tim Denoyer calls “extraordinary post-pandemic insourcing.” A glimmer of hope appears as Walmart Canada recently sold its fleet to Canada Cartage, potentially signaling a return to outsourcing. Though January’s freight rates rose 0.5% (their fourth consecutive monthly increase), this modest gain couldn’t offset the drop in overall shipment volume. 

Weather, Politics, and Tariff Threats Stir the Freight Soup

January punched freight markets from all sides: Winter storms froze the South while California burned. Retail sales plummeted to their worst drop since March 2023. On the global front, tariff wars escalated — Canada and Mexico face automotive supply chain threats, while China retaliated with tariffs on U.S. coal and farm equipment while slashing rare earth exports (they supply 40% of these critical minerals and 30% of ocean imports). Spot rates barely budged: dry vans up 0.5% from December, flatbeds flat but 1.2% above last January, and reefers gained 6 cents per mile. While 2025 should bring some rate relief, you might need a magnifying glass to spot it.

Motion Industries Strikes Gold: The Thompson Industrial Supply Acquisition

Motion Industries, a maintenance, repair, and operation parts distributor, just landed a major power play by acquiring Thompson Industrial Supply — the family-run California outfit that’s kept machines purring since 1969. When the ink dries at month’s end, Motion will welcome 45 skilled pros to their team, gain instant access to Thompson’s industrial products, and beef up their West Coast muscle. The industrial supply world just got a serious shake-up!

Thompson Levels Up

Thompson, a Rancho Cucamonga-based industrial supply powerhouse, boasts a gold mine of bearings, gear reducers, motors, hydraulics, automation systems, pneumatics, and in-house fabrication. Majority owner Gary Thompson will guide the transition while his family remains on board. “This partnership unlocks significant growth opportunities,” he said. And it makes sense why — it’s the ultimate power couple: Thompson’s homegrown expertise meets Motion’s massive resources, aka small-town service with big-company muscle.

SoCal’s New Supply Leader Has Arrived

Motion’s president, James Howe, is also overjoyed: “Thompson is highly reputable, and we’re thrilled to welcome their incredibly talented employees.” And it’s a win-win for Motion and its customers. Motion locks down its dominance in Southern California’s industrial supply chain, and customers now have a one-stop shop for everything from tiny bearings to custom hydraulic systems. The combined firepower of these two companies means faster service, broader inventory, and industry-leading technical know-how.

Playing Chicken with Warehouse Space: Retailers Pull Cargo Forward, Facilities Yawn

Retailers may have been rushing to beat tariffs and port labor issues, but warehouses across America are taking it all in stride. Though front-loading cargo became a key strategy in 2024 due to Red Sea troubles, East and Gulf Coast port labor concerns, and Panama Canal droughts, experts report warehouse capacity remains largely unfazed by the surge.

Old Warehouses, New Tricks: Pandemic Lessons Pay Off

The dreaded warehouse apocalypse simply hasn’t happened — post-pandemic investments created breathing room as companies successfully shed their COVID stockpiles, and John Morris, Americas president for CBRE’s industrial and logistics business, notes that “on average, there has not been a significant, market-altering level of capacity constraint.” Southern California alone flaunts over 2 billion square feet of distribution space ready for surging imports, and third-party logistics providers command up to 33% of warehouse space in major port hubs like Los Angeles and New Jersey. 

E-Commerce: The Space-Hungry Exception to the Rule

While traditional retailers found ways to limit excessive cargo front-loading by focusing on key product categories, e-commerce players continue driving significant warehouse demand. Without physical stores, online sellers demand vastly more fulfillment space — a trend Trump’s potential de minimis changes could accelerate. “There’s a limit to what people can do, but you have more options than two years ago,” notes Seko Logistics’ William Jansen.  

The Last Word: Surviving the Supply Chain Circus (With Your Sanity Intact)

While Uncle Sam’s waving the lumber flag and USPS is channeling its inner speed demon, you’re probably just trying to get your deliveries from A to B without losing your mind. March is looking wild, but at FRAYT, we’ve got your back with solutions that actually work for humans, not just logistics robots:

• The Lightning Round — FRAYT Rush: Point A to B at warp speed. Our elite drivers handle your urgent deliveries, picking them up within an hour with real-time tracking and zero compromises on care or speed.
• The Happy Medium — FRAYT Flex: Smart delivery windows that match your timeline. Our skilled drivers will deliver within four hours of your selected drop-off time, hitting your sweet spot between speed and flexibility.
• The Daily Dynamo — FRAYT End-of-Day: Same day delivery that packs a punch. Our drivers deliver by 5 p.m. with the rightsized vehicles and the hustle to keep your business moving.
• Smart Technology: Plug our system into yours, track every move, and book deliveries in seconds. Our support team has your back 24/7 — shipping emergencies don’t clock out at 5.

Ready to supercharge your deliveries? From the middle mile to the last mile, we’ve got your back. Sign up with FRAYT now and watch your supply chain transform from good to great.