COVID-19 Surcharges from FedEx and UPS

SURVIVING TEMPORARY SURCHARGES AMID COVID-19 CHAOS

Are your shipping contracts immune?

Like every other industry, the shipping industry has been tested by the COVID-19 pandemic like no other event we’ve experienced. Though the economy is suffering on many fronts, ecommerce sales are at an all-time high and shipping Carriers need to meet the demand. For the 2 weeks of March 22 through April 4, the number of online orders for web-only online retailers were up 52% year over year in North America, and among primarily store-based retailers, the number of online orders were up 56%.1

Essential to keeping the country’s supply chain moving, FedEx and UPS have been prompted to adapt and take action while complying with procedures to contain COVID-19’s spread. As part of their response, these Carriers have announced temporary peak surcharges that will remain in place until further notice. In addition to these rate increases, FedEx and UPS are also suspending their money back guarantees on all shipments.

Below, is a summary of the temporary peak surcharges for FedEx and UPS.


FedEx Temporary Peak Surcharges

FedEx Express International Services

Surcharge Amount (USD) per Pound
Effective Date: April 6, 2020

DESTINATION COUNTRIES

ORIGIN COUNTRIES

China

Rest APAC

All Other Regions/Countries

China

$0.45

$0.45

Rest APAC

$0.45

$0.45

$0.10

All Other Regions/Countries

$0.10

$0.10

$0.10

Additional details on FedEx surcharges can be found here.


UPS Temporary Peak Surcharges

International shipments from all origins to all destinations
(except China Mainland and Hong Kong SAR)

Surcharge Amount (USD) per Pound
Effective Date: April 12, 2020

SERVICE LEVELS

Worldwide Express Plus®

$0.11

UPS Worldwide Express®

$0.11

UPS Worldwide Saver®

$0.11

UPS Worldwide Expedited®

$0.11

UPS Worldwide Express Freight®

$0.34

UPS Worldwide Express Freight® – Midday

$0.34

Additional details on UPS surcharges can be found here.


Chances are, these surcharges will have a significant consequence on your financial performance. If your business is affected by COVID-19, you’re most likely looking for guidance. As part of our efforts to swiftly respond to changing market conditions, LJM is offering shipping cost management consultation. In addition to reevaluating current contracts, our Logistics Advisory Services will help reduce shipping costs through better spend analysis and data based strategic services. Leveraging services like these and our vast experience will help you successfully get through these difficult, unprecedented times until we’re in a post-COVID-19 era.

 

1 According to an online tracker from marketing platform Emarsys and analytics platform GoodData