UPS has unveiled big increases for peak surcharges from China and Hong to the U.S. and Europe as air capacity tightens again ahead of the traditional end-of-year peak season and commercial passenger flights remain heavily impacted by the coronavirus crisis.
The US delivery giant is hiking its surcharges for shipments from China and Hong Kong to the US by nearly a third and to Europe by more than two thirds, and has introduced big increases from various other Asia Pacific origin markets to the U.S., its latest service updates showed.
“UPS continues to provide essential service amid the ongoing coronavirus outbreak to support the needs of our customers. Our goal is to ensure businesses and customers are able to meet their shipping needs while demand has increased for shipping services,” the company commented in its Peak Surcharges overview.
China-US surcharges up nearly a third
UPS again raised peak surcharges on shipments from China and Hong Kong to the U.S. at the end of August following a previous increase on July 26.
As of August 30, the UPS surcharge for express shipments from China/Hong Kong to the U.S. increased by 29% to $1.02/lb from $0.79/lb. Similarly, the surcharge for expedited goods went up by 31% to $0.98/lb from $0.75/lb while the surcharge for express freight shipments increased by 14% to $1.81/lb from $1.59/lb.
China-Europe surcharges soar dramatically
In a second move, UPS will dramatically increase peak surcharges on shipments from China and Hong Kong to 19 countries in Europe as of September 20. These were last revised on June 28.
The surcharge for express shipments from China/HK to Europe will increase by 68% from €0.66/kg to €1.11/kg, expedited by 76% from €0.58/kg to €1.02/kg and freight by 20% from €2.21/kg to €2.65/kg.
Asia Pacific – US surcharges triple
Thirdly, UPS dramatically increased its peak surcharges from Australia, New Zealand and several other Asia Pacific origins (Taiwan, Vietnam, Malaysia, Thailand, Indonesia, Singapore, the Philippines) to the U.S. on August 30. These tripled to $0.34/lb from $0.11/lb for express shipments, rose nearly as much to $0.29/lb from $0.11/lb for expedited goods, and nearly quadrupled from $0.34/lb to $1.25/lb for express freight shipments.
All other UPS peak surcharges, including on shipments originating in the U.S. and Europe, remain unchanged.
No changes at DHL Express and FedEx
The other two global express integrators DHL Express and FedEx Express have not yet announced any changes in their respective coronavirus-related surcharges for the forthcoming peak season. Both last made minor adjustments in August.
DHL Express raised its Emergency Situation Surcharge for TDI shipments from China, Hong Kong and the rest of Asia to Australia and New Zealand from €1.65/kg to €2.00/kg as of August 24. All other surcharges remained at the levels applicable since July 1.
FedEx last adjusted its ‘temporary’ surcharges for shipments from various Asia Pacific markets to the US and other countries in the Americas on August 10.
The three global express companies introduced differently named surcharges for shipments in various parts of the world in March/April 2020 amid a sharp rise in operating costs and a collapse in commercial airlift as airlines grounded the bulk of their passenger planes in response to the worldwide COVID-19 pandemic. These surcharges have been adjusted several times since then in response to changing circumstances.
