UPS Parcel Surcharges On Mainland China, Hong Kong Shipments Up 30 Percent
As of August 30, UPS China-U.S. parcel surcharges have increased by 30 percent. The carrier says the peak surcharges on shipments from Hong Kong and mainland China to the U.S. will last until further notice.
The carrier's parcel surcharges are increasing from the existing levels in place since July 26. Freight rates are up by 14 percent. U.S. Worldwide Expedited surcharges are now more than twice what they were in April.
UPS’s peak surcharges per pound from mainland China and Hong Kong to the U.S. for its UPS Worldwide Express Plus, UPS Worldwide Express and UPS World Saver services have gone from $0.79 in July 26-August 29 to $1.02; UPS Worldwide Expedited has gone from $0.75 to $0.98; and its UPS Worldwide Express Freight and UPS Worldwide Express Freight Midday has gone from $1.59 to $1.81.
While airfreight rates from mainland China and Hong Kong are well short of their May peak, they’ve been gaining ground since early July. The pandemic has upended the normal ways of contracting airfreight, due to demand surges and supply shortfalls, and cargo space in passenger flights which is now effectively unavailable.
Recent comments from new UPS CEO Carol Tomé have analysts anticipating changes in the carrier’s approach. Tomé has suggested a “better, not bigger UPS,” as the company emphasizes quality in terms of volume and service. These changes in surcharges are said to factor into this approach.