It’s increased again! UPS increases peak season surcharges again

With the successive turmoil in the logistics industry, logistics prices have been rising recently, and the increase can be described as wave after wave.

In addition to the freight forwarding quotations in the circle of friends that have been increasing again and again, United Parcel Service ( UPS) also recently launched its second "price increase" since 2021.

Recently, Logistics Trends & Insights announced that UPS will increase the peak season surcharge for parcels sent from mainland China and Hong Kong to the United States starting from April 18.

This is also another price increase since UPS raised its peak season surcharge on February 28.

The UPS official website shows that starting from April 18, there has been a wave of price increases for peak season surcharges for six global products from mainland China and Hong Kong to the United States.

For example, the surcharge for UPS Worldwide Express has been increased from US$1.13 per pound (1 pound is approximately 0.45 kilograms) to US$1.25, and the surcharge for UPS Worldwide Express Freight has been increased from US$1.93 per pound to US$2.04.

During the same period, surcharges for six parcel products shipped from Australia, New Zealand and other Asian countries to the United States were also raised, such as UPS global express from $0.34 per pound to $0.45, and global express freight from $1.25 to $1.36.

However, the peak season surcharges for parcels from some European countries to the United States and North America will continue to implement the price policy after February 28, and the surcharges from Europe to the United States and North American countries will implement the policy since November 15, 2020.

Faced with the e-commerce wave brought about by the COVID-19 pandemic, the demand for residential deliveries has surged, and UPS has also benefited greatly from this wave.

According to the fourth quarter and full-year results for 2020 released by UPS , UPS's total revenue in 2020 reached US$84.6 billion, a year-on-year increase of 14.2%; operating profit was US$7.8 billion, and adjusted to US$8.7 billion, a year-on-year increase of 7% .

It is the peak season now, and the demand for various freight is increasing day by day, and even overloads are occurring one after another. For UPS, this may be a decision made with "pain". However, the increase in the peak season surcharge is "bad news" for many sellers.

Some sellers said that if UPS's surcharge increase can lead to faster logistics, then that's fine. However, looking at the recent turbulence in foreign logistics, it seems a bit uncertain.

Therefore, under such market conditions, sellers must carefully choose logistics channels based on their own costs to minimize the negative impact of rising logistics costs.

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