UPS will apply a surge fee to packages to the US coming from Asia, according to Supply Chain Dive, which said ten countries will have a $0.25 per-pound surge fee applied to shipments, and three countries – China, Hong Kong, and Macau, will have a $0.50 per-pound surge fee applied.
“UPS and other parcel carriers are grappling with a flood of packages coming from Asia-based e-commerce marketplaces like Temu and Shein,” Supply Chain Dive reported. “These types of companies provide plenty of volume for carriers, but their packages are typically not as profitable to deliver as healthcare and small business shipments.”
The publication linked to the fee schedule posted on the UPS website on August 15, 2024, where it states of the new fees: “Our goal is to ensure that we can continue to meet our customers’ shipping needs without compromising on the quality or timeliness of service expected from us.”
Note that packages from abroad are entitled to what some call “a trade loophole” known as de minimus – packages worth less than $800 entering the US are duty-free – and marketplaces like Temu and Shein are taking advantage of it with their direct-to-consumer model.
The new UPS fees go into effect on September 15, 2024.
*** Good! ***
As a U.S. seller on Etsy, this “loophole” is putting U.S. sellers out of business because U.S. sellers cannot compete with cheap overseas goods with “free shipping”.
It’s time to close this outdated loophole.
Stoned11 said it right but we have crooked politicians on both sides preventing this to be fixed as they are bought and paid for by China thus why they are doing everything they can to prevent Trump from regaining the White House. Trump stopped the massive flow of Epackets thru the Post Office. These shippers found this loophole a couple years ago and know Trump could have his sights on this loophole.