UPS slaps temporary fee on China-to-US shipments

Dive Brief:

• UPS implemented a $0.29 per pound surcharge on all shipments from China, Hong Kong and Macau going to the U.S., the carrier announced earlier this month.
• The “Surge Fee” took effect Sunday and will remain active through March 29. It applies based on the billable weight of the shipment and is also subject to UPS’ fuel surcharge.
• “Our goal is to ensure that we can continue to meet our customers’ shipping needs without compromising the quality or timeliness of service expected from us,” UPS said.

Dive Insight:

UPS is once again levying a surcharge on the China-to-U.S. lane as the company looks to satisfy growing export demand from Asia.

Average daily export volume from the continent increased 15.4% year over year in the fourth quarter, outpacing overall export volume growth of 11.7%, EVP and CFO Brian Dykes said on a January earnings call. Increased demand from small- and medium-sized businesses in the retail, high tech and manufacturing sectors drove volume growth on the trade lane throughout 2024, according to UPS’ annual financial report.

The carrier first introduced a Surge Fee last year, priced at $0.50 per pound for shipments from China, Hong Kong and Macau. The surcharge came while UPS grappled with a flood of packages from e-commerce marketplaces like Shein and Temu that rely on shipping services out of China.

The latest edition of the Surge Fee adds to the roster of surcharge changes UPS customers will navigate in 2025, including a higher late payment rate and new charges for check and wire transfers.

It also pressures China-to-U.S. shippe…