Your packages will cost more to ship

UPS is adding surcharges to package shipments. The ‘surge fee’ is applied to packages from China and 12 Australasian countries arriving by air.

It should result in a big revenue gain. Shipments from China to the US are up more than 20% from last year. Many of the shipments are de minimis, which means they are small in size and/or weight, and don’t need a special customs handling. The ‘surge fee’ will add 50 cents per pound to these shipments, and all others.

Do you think UPS’ volumes will take a hit? Will shippers go elsewhere? Probably. But the business may not be very profitable, and the least profitable segments will move first.

UPS has also been adding fuel surcharges to package shipments.

At some point, shippers will look elsewhere for a carrier. And meantime, your e-commerce orders will start costing more.

By Ian Putzger  29/08/2024

Surcharges add up for parcel shippers – and there may be more to come