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How can sellers cope with the significant increase in cross-border logistics costs

2024-04-21

With the arrival of November, Amazon's peak season delivery fees have officially been implemented, marking the arrival of the peak season for e-commerce logistics. During this period, Amazon will charge additional holiday peak season delivery fees for Amazon Logistics products (excluding clothing), clothing, and dangerous goods.


The introduction of this seasonal fee is mainly to cope with the increase in fulfillment and transportation operating costs caused by the surge in order volume during the holiday shopping season. The fee standard is similar to the charging policies of other major carriers.


Not only that, logistics providers have also entered the "peak season mode". International express giants including UPS, DHL, and FedEx have announced that they will add peak season surcharges or peak season service fees during peak seasons, which undoubtedly brings greater cost pressure to cross-border e-commerce sellers.


UPS


UPS announced two plans to increase peak season surcharges as early as July this year. The first increase took effect on September 15th, with the peak season surcharge raised from $3.5 to $7.75; The second increase is expected to be implemented in mid to late November, when the peak season surcharge will further rise to $9.95. In addition, the additional fees for large packages and packages exceeding the maximum limit will also be adjusted. It is worth noting that UPS has also announced an average daily rate increase of 5.9% for its ground, air, and international services starting from December 23, 2024.


DHL EXPRESS


DHL Express also announced a plan to increase peak season surcharges in September this year, which will be levied from September 15, 2024 to January 31, 2025 based on the origin and destination of the goods. Meanwhile, DHL has also announced a new rate adjustment plan, with an average increase of 4.9% in transportation costs for Hong Kong, Macau, and Taiwan from January 1, 2025.


FEDEX


FedEx has also announced plans to adjust rates and surcharges. Among them, the rates for FedEx Express and FedEx Ground have increased by 5.9% since September 15, 2024. This fee used to mainly apply during the holiday season, but it has now been renamed and is applicable during peak demand periods throughout the year. In addition, starting from January 6, 2025, FedEx's freight rates for domestic and import/export services in the United States will increase by an average of 5.9%. At the same time, the delivery costs for special packages such as residential parcels and parcels in specific postal code areas have also increased.


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