{"id":5247,"date":"2024-09-06T15:22:52","date_gmt":"2024-09-06T15:22:52","guid":{"rendered":"https:\/\/docshipper.us\/en\/?p=5247"},"modified":"2024-09-06T15:25:27","modified_gmt":"2024-09-06T15:25:27","slug":"surcharges-add-up-for-parcel-shippers-more-to-come","status":"publish","type":"post","link":"https:\/\/docshipper.us\/en\/news\/surcharges-add-up-for-parcel-shippers-more-to-come\/","title":{"rendered":"UPS Introduces New Surcharges on China Imports Ahead of Peak Season"},"content":{"rendered":"<div id=\"bsf_rt_marker\"><\/div><p>UPS is hitting cargo owners with multiple surcharges in the run-up to the peak season \u2013 with the biggest hit on imports from China and its territories. Starting on 15 September, the integrator is to impose a \u2018surge fee\u2019 on US imports arriving by air from China and 12 Australasian countries or territories.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_71 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/docshipper.us\/en\/news\/surcharges-add-up-for-parcel-shippers-more-to-come\/#Key_points\" title=\"Key points\">Key points<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/docshipper.us\/en\/news\/surcharges-add-up-for-parcel-shippers-more-to-come\/#UPS_Imposes_Surge_Fee\" title=\"UPS Imposes Surge Fee\">UPS Imposes Surge Fee<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/docshipper.us\/en\/news\/surcharges-add-up-for-parcel-shippers-more-to-come\/#Revenue_Implications_for_UPS\" title=\"Revenue Implications for UPS\">Revenue Implications for UPS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/docshipper.us\/en\/news\/surcharges-add-up-for-parcel-shippers-more-to-come\/#Further_Surcharges_and_Impact_on_Shippers\" title=\"Further Surcharges and Impact on Shippers\">Further Surcharges and Impact on Shippers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/docshipper.us\/en\/news\/surcharges-add-up-for-parcel-shippers-more-to-come\/#Future_Prospects_and_Alternatives\" title=\"Future Prospects and Alternatives\">Future Prospects and Alternatives<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Key_points\"><\/span>Key points<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>UPS will introduce a surge fee on US imports from China and 12 Australasian countries starting 15 September.<\/li>\n<li>The fee for parcels from China, Hong Kong, and Macau will be 50 cents per pound, while for other countries, it will be 25 cents per pound.<\/li>\n<li>Fuel surcharges also rise significantly, impacting overall shipping costs.<\/li>\n<li>Observers suggest the surcharges target volumes from e-commerce giants like Temu and Shein.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"UPS_Imposes_Surge_Fee\"><\/span>UPS Imposes Surge Fee<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Starting 15 September, UPS will introduce a new &#8216;surge fee&#8217; on US imports coming from China and 12 other Australasian nations. For parcels originating from China, Hong Kong, and Macau, this fee will be 50 cents per pound, while parcels from the remaining countries will face a 25 cents per pound charge. The surcharge is based on billable weight, which allows UPS to choose between dimensional or physical weight, depending on which is greater. John Haber, chief strategy officer of Transportation Insights, noted that the new surcharge does not have a specified end date and will apply to all types of services.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Revenue_Implications_for_UPS\"><\/span>Revenue Implications for UPS<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The increased charge on parcels from China and its related territories is likely to generate substantial revenue for UPS. In the second quarter alone, UPS saw a 20.6% year-on-year increase in volumes from China to the US. Observers quickly identified that these additional charges are primarily aimed at huge volumes from Chinese e-commerce giants Temu and Shein. Despite their significant volumes, the yield on these de minimis shipments has been quite low. By adding 50 cents per pound, UPS aims to address these yield issues.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Further_Surcharges_and_Impact_on_Shippers\"><\/span>Further Surcharges and Impact on Shippers<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In addition to the surge fee, UPS is also attempting to boost its income via fuel surcharges. Effective from 19 August, these surcharges have already seen increases. For domestic ground service, the surcharge rose from 16% to 16.75% within a week. Similarly, fuel surcharges for air shipments climbed from 15.75% to 16.75% on 26 August, while international air exports and imports saw increases to 20.75% and 24.5%, respectively. UPS has also expanded its fuel surcharge to cover more products, including various &#8216;value-added services&#8217;. A notable change is the $20 fuel surcharge for address corrections, even though 90% of these adjustments are made before package delivery.<\/p>\n<p>John Haber estimates that these combined charges could significantly impact shippers, with some large shippers potentially seeing an additional $100,000 added to their annual shipping bills solely from fuel surcharges.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Future_Prospects_and_Alternatives\"><\/span>Future Prospects and Alternatives<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>According to John Haber, FedEx is likely to match UPS&#8217;s new charges, as the two companies usually align their pricing strategies. While FedEx has not announced a surge fee yet, it has implemented an &#8216;import demand surcharge&#8217; of 25 cents per pound on shipments to the US from China, Hong Kong, and the Philippines. Haber believes that additional countries may be added to the &#8216;surge fee&#8217; list, and that UPS might further adjust fuel surcharges throughout the year. Shippers will need to diligently scrutinize their transport invoices to manage costs effectively and may explore less expensive alternatives as they navigate these rising surcharges.<\/p>\n<p>&#8220;They&#8217;re rolling the dice,&#8221; Haber commented regarding UPS management&#8217;s strategy. &#8220;Will they lose some volume? Yes,&#8221; he added. UPS&#8217;s aggressive surcharge strategy appears to be a calculated risk aimed at increasing its revenue amid growing operational challenges.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>UPS is hitting cargo owners with multiple surcharges in the run-up to the peak season \u2013 with the biggest hit on imports from China and its territories. Starting on 15 September, the integrator is to impose a \u2018surge fee\u2019 on US imports arriving by air from China and 12 Australasian countries or territories. Key points &hellip;<\/p>\n","protected":false},"author":1,"featured_media":5246,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27],"tags":[],"class_list":["post-5247","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/docshipper.us\/en\/wp-json\/wp\/v2\/posts\/5247","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/docshipper.us\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/docshipper.us\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/docshipper.us\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/docshipper.us\/en\/wp-json\/wp\/v2\/comments?post=5247"}],"version-history":[{"count":1,"href":"https:\/\/docshipper.us\/en\/wp-json\/wp\/v2\/posts\/5247\/revisions"}],"predecessor-version":[{"id":5276,"href":"https:\/\/docshipper.us\/en\/wp-json\/wp\/v2\/posts\/5247\/revisions\/5276"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/docshipper.us\/en\/wp-json\/wp\/v2\/media\/5246"}],"wp:attachment":[{"href":"https:\/\/docshipper.us\/en\/wp-json\/wp\/v2\/media?parent=5247"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/docshipper.us\/en\/wp-json\/wp\/v2\/categories?post=5247"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/docshipper.us\/en\/wp-json\/wp\/v2\/tags?post=5247"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}