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Our read U.S. integrators are shrinking into profit: UPS lost domestic volume after the Amazon glide-down yet grew adjusted profit 12% on yield, and FedEx grew revenue double digits on price while fuel and trade friction ate its margin. Our read is that the volume they shed is flowing to Amazon's own network, which grew operating income 43% while buying delivery speed, so shippers should expect firm list-rate increases (FedEx +5.9% for 2027) and surcharges from the integrators, and more capable alternatives from marketplace logistics.

CompanyPeriodRevenueOperating profit
FedExQ4 FY2026 (March-May 2026); the June-August 2026 quarter had not been published by 30 September 2026$25.0bn +12.6% YoY$1.55bn -13% YoY (GAAP)
UPSQ2 2026 (April-June)$22.8bn +7.6% YoY$2.1bn +12% YoY (adjusted)
AmazonQ2 2026 (April-June)$200.6bn +20% YoY (also +20% ex-FX)$27.5bn +43% YoY

FedEx

Integrator
Q4 FY2026 (March-May 2026); the June-August 2026 quarter had not been published by 30 September 2026 · 2026-06-23
Revenue$25.0bn+12.6% YoY
Operating income (GAAP); adjusted $2.09bn, 8.4% margin$1.55bn-13% YoY (GAAP)margin 6.2% (GAAP)

Volumes U.S. domestic average daily packages 14.2m (+3% YoY); international domestic volume -9%

Trend Beat on EPS (adjusted $6.31) but shares fell c.6% as calendar-2026 guidance came in slightly below consensus; FY2026 revenue $94.7bn (+7.8%), adjusted operating income $6.61bn. Fiscal year moves to a December year-end: June-December 2026 is a seven-month transition period, so no Q1 FY2027 exists.

What drove it
  • Yield-led growth: U.S. domestic composite package yield +10%, export volumes up
  • Transformation savings above the $1bn target for FY2026; B2B and AI/data-centre verticals growing double digits
  • FedEx Freight spin-off completed on 1 June 2026 as a tax-free separation; Freight paid a $4.1bn dividend to FedEx and is now reported as discontinued operations
Main challenges
  • Fuel expense up 66% YoY to $1.43bn in the quarter, plus higher purchased transportation and wages
  • Global trade policy and tariff changes weighing on international flows
  • Post-spin stranded overhead and MD-11 fleet grounding
SegmentRevenueProfit
Federal Express (pre-realignment)$21.6bnnot disclosed hereFrom June 2026 split into Express U.S. Domestic and Express International (FedEx Logistics moves into International)
FedEx Freight (last quarter consolidated)$1.7bnnot disclosed hereSeparated on 1 June 2026; now an independent listed LTL carrier

Outlook Calendar 2026: revenue growth of about 11%, adjusted EPS $16.90-18.10, capex $3.9bn; 2027 list rates +5.9% average from 4 January 2027.

Sources: FedEx Investor Relations FedEx / SEC EDGAR SupplyChain247 Yahoo Finance (Bloomberg reporting) Reveel

UPS

Integrator
Q2 2026 (April-June) · 2026-07-28
Revenue$22.8bn+7.6% YoY
Adjusted operating profit (non-GAAP); GAAP $0.93bn after $1.2bn transformation costs$2.1bn+12% YoY (adjusted)margin 9.2% adjusted (4.1% GAAP)

Volumes U.S. Domestic average daily volume 16.0m (-3.3% YoY) after the Amazon glide-down; SMB share of domestic volume 34.5%

Trend U.S. Domestic adjusted margin up 400bp on Q1 to 8.0%; full-year guidance raised to revenue of about $91.2bn and adjusted operating profit of about $8.65bn.

What drove it
  • Amazon glide-down and network reconfiguration completed as planned; $1.2bn of programme benefits in H1, $3bn targeted for 2026
  • Revenue per piece +9.3% in U.S. Domestic and +18.9% in International
  • Supply Chain Solutions margin up 220bp to 10.2%, helped by healthcare logistics
Main challenges
  • International operating profit -8.7% and margin down 280bp to 12.4%; more than half of the revenue-per-piece gain came from fuel surcharges
  • Heavy transformation costs (Driver Choice programme, building closures) cut GAAP EPS to $0.71 from $1.51
  • Q3 domestic margin guided down to about 7.0%; shares fell almost 5% on the day
SegmentRevenueProfit
U.S. Domestic$14.9bn (+6.0%)$1.19bn adjusted (8.0%)GAAP operating profit only $16m after transformation charges
International$5.0bn (+12.5%)$623m (12.4%)Margin compression despite strong yields
Supply Chain Solutions$2.9bn (+7.8%)$291m (10.2%)Operating profit +37% YoY

Outlook 2026: revenue about $91.2bn, adjusted operating profit about $8.65bn, adjusted EPS about $7.22, capex $3.0bn.

Sources: UPS / SEC EDGAR Investing.com

Amazon

E-commerce platform logistics
Q2 2026 (April-June) · 2026-07-30
Revenue$200.6bn+20% YoY (also +20% ex-FX)
Operating income$27.5bn+43% YoYmargin 13.7%

Volumes Units not disclosed; Prime same-day or overnight deliveries up more than 40% in H1

Trend First quarter above $200bn; Q3 guidance of $197-202bn (+9-12%) is held back by Prime Day moving out of the quarter and about 80bp of FX.

What drove it
  • North America sales $116.2bn (+16%), operating income $9.1bn (from $7.5bn); International sales $42.2bn (+15%), operating income $1.7bn (4.1% margin)
  • Record delivery speeds: same-day perishables in 2,300 U.S. cities; regionalised inventory placement, fewer touches per package and more robotics
  • Amazon Haul ultra-low-price selection expanded nearly 20x
Main challenges
  • Shipping costs pushed up by fuel and line-haul rates linked to the Middle East conflict and driver shortages; excluding these, shipping costs grew slower than units (absolute amount not disclosed in the release)
  • Most tariff costs absorbed rather than passed on (partly offset by $600m of tariff refunds)
  • 2026 capex raised to about $220bn, mostly AI and AWS
SegmentRevenueProfit
North America$116.2bn (+16%)$9.1bnMargin c.7.8%
International$42.2bn (+15%)$1.7bnMargin 4.1%
AWS$42.2bn (+37%)$16.6bnFastest growth in 18 quarters; funds the logistics build-out

Outlook Q3 2026: net sales $197-202bn, operating income $22.5-26.5bn.

Sources: Amazon Investor Relations Investing.com

Next results and dates

  • 2027-01-04FedEx 2027 general rate increase takes effect (5.9% average; Ground and Home Delivery 6.1%)
Solution landscape

Who helps comply with the new rules

Every change in duty thresholds and customs data rules creates demand for tools and services that calculate, declare and pay on behalf of sellers, platforms, posts and carriers, and the choice of partner now shapes margin and liability. This page lists, for each need, at least three providers in alphabetical order with what they say they offer; it is information, not an endorsement or a ranking.

US: end of de minimis and new postal entry rules

What the rule requires CBP's rule published on 24 June 2026 suspends de minimis for mail indefinitely and creates a postal informal entry that only the owner, the purchaser or a licensed customs broker may file, backed by a single transaction or continuous bond; requirements for partner agency data and Chapter 98-99 duties apply from 22 October 2026. Foreign posts can no longer file themselves, so duty on postal items must be paid by the carrier or by a qualified party acting in its place, and CBP's list of such parties had reached 39 by January 2026.

BoxC

E-commerce shipment and customs platform

Approved by CBP in September 2025 as a qualified party to calculate, file and pay duty on postal shipments, and listed by the UPU among providers implementing its postal DDP solution.

Describes itself as an e-commerce shipment management platform for retailers importing across borders.

Supply Chain Dive Universal Postal Union FreightWaves

Hurricane Commerce

DDP, duty and tax calculation and customs data platform

Offers a modular DDP platform covering classification, duty and tax calculation, customs clearance and parcel routing; the UPU lists it among providers implementing its postal DDP solution with a qualified-party partner.

Serves posts, carriers, marketplaces, retailers and forwarders, and says clients can keep their existing providers and pricing while connecting through its platform.

Hurricane Commerce Universal Postal Union

iCustoms

Customs declaration and classification software

Provides AI-assisted declaration filing, HS classification, duty calculation and a parcel clearance service for US shipments; the UPU lists it among providers implementing its postal DDP solution, with JamesCB as qualified party.

Positions itself as an all-in-one customs automation tool for customs agents, traders, carriers, postal operators and online sellers.

iCustoms Universal Postal Union

SafePackage

Postal duty collection intermediary

Was among the first parties CBP qualified to pay duty on international postal shipments in lieu of the carrier, and is listed by the UPU among providers implementing its postal DDP solution.

Works on the postal channel as a qualified party between foreign posts and CBP.

Supply Chain Dive Universal Postal Union US Customs and Border Protection

Zonos

Landed-cost and postal DDP platform

Calculates duty at origin for posts, offers a landed cost guarantee and, after acquiring the licensed US broker Evolve Trade Services, files the entries now required for postal shipments; it was the first provider integrated into the UPU DDP solution.

Works directly with postal operators, including Canada Post, and with shippers, and says it contacts each post with a post-specific cutover date.

Zonos Universal Postal Union

Still moving The Entry Type 13 test and the 22 October compliance date will show whether postal informal entry can scale at peak, and CBP keeps adding names to its qualified party list.

EU: €3 duty per tariff line, handling fee and platforms as importers

What the rule requires Since 1 July 2026 a temporary €3 customs duty applies to each tariff subheading in e-commerce parcels worth up to €150, declared and paid by the seller or importer, until 1 July 2028. A €2 Union handling fee per item follows from 1 November 2026, and the customs reform approved in September makes platforms and non-EU sellers the importer and creates an EU Customs Data Hub run by a new EU Customs Authority.

Avalara

Tax and customs compliance software

Offers duty calculation, item classification and origin determination, with duty liability tracked by parcel or shipment and duty shown at checkout for IOSS and non-IOSS sellers.

Sells cross-border tax automation to online sellers and marketplaces, and describes the change as one where data quality and automation matter more.

Avalara

EAS Project

IOSS intermediary and compliance service

Provides IOSS registration, reporting and filing, DDP delivery workflows and guidance on preparing product data for the €3 duty.

Describes its service as tax, delivery and product compliance for international e-commerce sellers shipping into the EU and UK.

EAS Project

Hurricane Commerce

DDP, duty and tax calculation and customs data platform

Combines EU IOSS handling, duty and tax calculation, classification and customs clearance in one modular DDP platform.

Serves posts, carriers, marketplaces, retailers and forwarders facing the end of de minimis regimes.

Hurricane Commerce

iCustoms

Customs declaration and classification software

Files declarations into EU and Irish customs systems and the UK's CDS, with AI-assisted classification and duty calculation.

Serves customs agents, traders, carriers, postal operators and online sellers.

iCustoms

Zonos

Landed-cost and postal DDP platform

Calculates the €3 per HS line duty for IOSS and non-IOSS orders, manages filing and liability with postal partners, and captures the product identifiers (SKU, manufacturer ID, GTIN) it says become mandatory on 1 November 2026.

Works with merchants and postal partners, and tracks member state and Union fees as they change.

Zonos

Still moving The Union Customs Code reform still needs its implementing acts, the Customs Data Hub and EU Customs Authority are not due before 2027, and several member states are adding national parcel fees of their own.

UK: removal of the £135 customs relief and VAT at checkout

What the rule requires Since 2021, VAT on consignments of £135 or less has been charged at the point of sale, with online marketplaces as deemed suppliers. The consultation response published in July 2026 confirms that customs duty relief on these goods will be removed by October 2028, with full classification under the UK Global Tariff, item-level data and UK fiscal representatives jointly liable for overseas sellers' debts.

Avalara

Tax and customs compliance software

Provides UK VAT registration, return preparation and cross-border tax and duty compliance for sellers and marketplaces affected by the point-of-sale VAT rules.

Sells VAT and cross-border compliance software to sellers from the UK, the EU and elsewhere.

Avalara

Customs Declarations UK

UK customs declaration software

Runs a cloud platform for filing UK import and export declarations, including CDS declarations, bulk import reduced data sets and entry summary declarations.

Operated by AJ Software Solutions, it targets businesses that file their own UK declarations.

Customs Declarations UK

EAS Project

IOSS intermediary and compliance service

Offers registration, reporting and ongoing UK VAT compliance alongside its EU IOSS service.

Serves international e-commerce sellers active in the UK and the EU.

EAS Project

iCustoms

Customs declaration and classification software

Files UK CDS declarations with AI-assisted classification and duty calculation, and tracks the £135 relief removal for its users.

Serves customs agents, traders, carriers, postal operators and online sellers.

iCustoms

Passport (a Global-e division)

Cross-border logistics and seller of record service

Lets brands clear UK shipments under Passport's own VAT number through a seller of record model, collecting VAT at checkout and filing the returns.

Targets e-commerce brands entering the UK on a DDP basis; since 1 July 2026 it operates as a division of Global-e offering a non merchant of record solution.

Passport Global-e

Still moving Secondary legislation has yet to settle whether a flat rate or standard duty applies below £135, whether a handling fee comes in, and whether VAT collection moves to the customs process.

Landed cost at checkout and DDP for merchants

What the rule requires With duty-free thresholds gone in the US and the EU and going in the UK, a low-value parcel shipped duties unpaid now risks a duty bill, a carrier advancement fee and a refused delivery. Merchants and platforms therefore need to calculate duty, tax and fees at checkout, collect them and ship DDP, which depends on correct classification and origin data for every item.

Avalara

Tax and customs compliance software

AvaTax Cross-Border estimates customs duty and import taxes in real time at checkout, from HS codes or from item descriptions when codes are missing, to support DDP.

Sold as a checkout component to international sellers, marketplaces and logistics businesses.

Avalara

ESW

Cross-border merchant of record

Acts as merchant of record for brands, taking on trade compliance, classification, customs readiness, settlement, fraud and duty recovery on returns, with DDP delivery.

Targets enterprise brands that want compliance, finance and supply chain accountability centralised with one provider.

ESW ESW

Global-e

Cross-border direct-to-consumer platform

Calculates duties and taxes for each order from value, origin, HS code and trade agreements, and presents the options to the shopper at checkout.

Describes itself as a platform for global direct-to-consumer e-commerce combining localisation, logistics and international sales; it acquired Passport in July 2026.

Global-e (documentation) Global-e

Passport (a Global-e division)

Cross-border logistics and seller of record service

Displays a fully landed cost at checkout and collects duties and taxes upfront under a DDP model, alongside its logistics service.

Serves e-commerce brands going international; now a Global-e division offering a non merchant of record solution.

Passport Global-e

Zonos

Landed-cost and postal DDP platform

Calculates duties, taxes and fees at checkout for more than 200 destinations, remits under schemes such as IOSS and UK VAT, and says it pays the difference if customs charges more than quoted.

Integrates with commerce platforms such as Shopify, BigCommerce and WooCommerce for merchants selling abroad.

Zonos

Still moving Per-line EU duty, the EU handling fee and the future UK regime all change how a landed cost is built, so checkout engines will need updating through 2027 and 2028.

HS classification and customs data quality with AI

What the rule requires The EU €3 duty is charged per tariff subheading, US postal entries need a classification, origin and value for every item, and the UK will require full classification under its tariff. Classification and product data have become a condition of clearance for low-value parcels, not a back-office task.

Avalara

Tax and customs compliance software

Assigns HS, HTS and Schedule B codes for more than 180 countries through automated, self-serve and managed tiers that combine machine learning with human classifiers.

Aimed mainly at brokers, shippers and large retailers with big catalogues.

Avalara

Descartes

Trade compliance software

Offers AI-assisted HTS classification and duty determination on a database of duties, rulings and trade agreements covering more than 175 countries.

Sells to manufacturers, importers, retailers and forwarders, with integration into ERP systems such as SAP and Oracle.

Descartes

Digicust

AI customs classification software

Classifies products from descriptions, images or datasheets using the General Rules of Interpretation, returning codes with confidence scores and references to binding tariff information.

EU-hosted software for customs brokers, e-commerce and retail companies, manufacturers and logistics operators.

Digicust

iCustoms

Customs declaration and classification software

Combines product classification with HS and HTS code assignment, document data extraction and declaration filing.

Serves customs agents, traders, carriers, postal operators and online sellers.

iCustoms

TariffTel

Tariff classification software and managed service

Provides AI code suggestions with reasoning, expert-verified classifications with an audit trail, and a managed classification service.

Works mainly with UK retailers, importers and manufacturers in food, fashion, beauty and electrical goods.

TariffTel

Zonos

Landed-cost and postal DDP platform

Zonos Classify assigns country-specific HS and HTS codes from product names, descriptions or images using machine learning models.

Offered to merchants, marketplaces, carriers, postal services and logistics providers.

Zonos

Still moving The EU Customs Data Hub and the new product identifier requirements will test whether automated classification is accepted by customs at scale.

Customs brokerage and clearance at scale for e-commerce

What the rule requires When a parcel becomes a full import, someone must hold the broker licence, the bond and the filing capacity: in the US only the owner, the purchaser or a licensed broker may file a postal entry. Brokerage is moving from a freight service to a per-parcel data operation, and licensed brokers, forwarders and integrators are competing for the role.

DHL (eCommerce and Global Forwarding)

Integrator-owned brokerage

Both DHL eCommerce and DHL Global Forwarding were added by CBP in January 2026 to the list of parties qualified to pay duty on postal shipments.

A carrier group offering clearance to its own shipping customers, with smaller parcels named as a focus.

Supply Chain Dive

Flexport

Digital forwarder and licensed customs broker

Combines licensed brokers with AI tools for data extraction, duty calculation, entry filing, compliance audits and duty drawback; CBP qualified it in 2025 to pay duty on postal shipments.

Serves importers from start-ups and marketplace sellers to multinationals, and describes itself as building an operating system for global trade.

Flexport Supply Chain Dive

GHY International

Customs broker with e-commerce service

Its eBiz service combines brokerage, logistics and technology for low-value Canada and US parcels, with classification at checkout; CBP added GHY eBiz to its qualified party list in January 2026.

A long-established Canadian and US broker offering direct-to-consumer clearance to importers.

GHY International Supply Chain Dive

KlearNow.AI

Licensed broker and clearance software

Runs AI-driven clearance workflows that turn emails, PDFs and EDI data into entries, and files as a licensed broker in the US, Canada, the Netherlands, Spain and the UK.

Serves customs brokers, forwarders, importers and self-filers, as software or as a managed service.

KlearNow.AI

SEKO Logistics

Logistics provider with e-commerce clearance

Launched DutyPay with CustomsCity in 2025 for checkout landed cost and automated classification and documentation, and was added by CBP to its postal qualified party list in January 2026.

A global logistics group selling US market entry to retailers and e-commerce brands.

SEKO Logistics Supply Chain Dive

Zonos

Landed-cost and postal DDP platform

Files US entries for postal shipments through Evolve Trade Services, a licensed customs brokerage it acquired.

Combines brokerage with its landed-cost service for posts and shippers.

Zonos

Still moving CBP's handling of the 22 October compliance date and the EU's move to platforms as importers will decide how much clearance volume stays with brokers and how much moves to platforms.

Brazil: Remessa Conforme and the zero rate up to US$50

What the rule requires Law 15,502/2026, signed on 10 September, keeps a zero federal import tax on purchases up to US$50 made through platforms certified under Remessa Conforme, while state ICMS still applies. The law also adds duties for platforms: verifying seller identity and bank data, monitoring fraud and split shipments, keeping electronic records and reporting quarterly.

nocnoc

Marketplace access and DDP service for Latin America

Lists foreign sellers on Brazilian and regional marketplaces through its own stores and handles Remessa Conforme compliance, import taxes and DDP logistics.

Positions itself as a single integration to more than 15 Latin American marketplaces for cross-border sellers.

nocnoc

Passport (a Global-e division)

Cross-border logistics and seller of record service

Helps brands with Remessa Conforme registration and compliant checkout pages, and monitors Brazilian tax changes.

Serves international e-commerce brands entering Brazil; now a Global-e division.

Passport Global-e

ShipSmart

Cross-border logistics and duty platform

Says it is integrated with Remessa Conforme so that taxes are collected at checkout and parcels clear faster, with automated duty calculation and DDP shipping.

A logistics platform covering checkout to last mile, with a focus on Brazil and Mercosur markets.

ShipSmart

Still moving The consumption tax reform (CBS and IBS) from 2027 and the Finance Minister's power to set a rate of up to 30% above US$50 could change what platforms must collect.

Figures come from company results releases or quality financial press, as published; periods differ by company. Our read is WhyItLands’ analysis.

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