UPS has announced that they will be reinstating a $0.29 per pound surcharge on all shipments from China, Hong Kong, and Macau entering the U.S. starting on April 13th. This decision was communicated in an announcement made on Friday. The “Surge Fee” does not have a specified end date and the rate can be adjusted at any time. It applies to the billable weight of a shipment and is also subject to UPS’ fuel surcharge.
This surcharge had been previously implemented from March 16th to 29th. UPS stated that with the reintroduction of the surcharge, they aim to continue meeting the needs of shippers while maintaining the quality and timeliness of service expected from them. The current global supply chain landscape is experiencing challenges due to the volatile trade relations between the U.S. and China, as well as significant price increases for goods being transported between the two countries.
In response to the Trump administration’s increase in tariffs, China has announced that tariffs on U.S. imports will rise to 125% on Saturday. The U.S. is also planning to eliminate the de minimis exemption for products from China and Hong Kong on May 2nd, which will subject imports under $800 to these tariffs. These developments are further complicating the trade environment between the two nations.
The return of the Surge Fee adds to the list of potential charges that UPS customers will need to navigate this year. The recent proliferation of additional fees and rate hikes from UPS and FedEx is putting pressure on parcel costs. The TD Cowen/AFS Freight Index is forecasting a 2.6% year-over-year increase in ground delivery rates for Q2, indicating further financial challenges for businesses relying on shipping services.
Overall, the reinstatement of the Surge Fee by UPS reflects the ongoing complexities in global trade and supply chain dynamics. Businesses will need to adapt to these changes and factor in potential cost increases when planning their logistics strategies. As the situation continues to evolve, staying informed and agile in response to market fluctuations will be crucial for companies seeking to effectively manage their shipping expenses and maintain operational efficiency.
