Shipping Surcharges 101
Volume 63 Breakdown:?
De minimis exemptions for packages from China in flux
Last week, President Trump signed an Executive Order ending de minimis exemptions for products imported from China. The exemption previously allowed items under $800 in value to enter the U.S. duty-free, fueling an explosive growth in overseas eCommerce.
Shortly after, the White House temporarily reinstated the exemptions. Once the Secretary of Commerce has “adequate systems” in place to properly process and collect tariff revenue on such packages, the de minimis exemptions will end.
USPS quickly ends suspension of Chinese imports:
Shortly after Trump’s de minimis Executive Order was signed, the USPS suspended their intake of postal packages from China and Hong Kong. Less than a day later, this suspension was lifted with an announcement they’re working to implement a new collection system for these packages.
USPS Ground Advantage sees significant volume gains
The USPS secured more volume directly from shippers in Q4 2024 through Ground Advantage.?
Ground Advantage’s volume grew 16.1% YoY, and revenue grew 27%. According to the agency, the service’s “acceptance in the marketplace” has exceeded expectations.
The growth comes after the USPS adjusted pricing structures for Parcel Select parcel consolidator services, which many believe was an effort to drive more shippers to Ground Advantage. Volume in those services fell 3.1% YoY.
What is # of Delivery Area Surcharges?
Delivery Area Surcharges are applied by the carriers when you ship to “less-populated” or rural areas. They do this to offset their cost of the extra miles put on a truck to access these zip codes. # of Delivery Area Surcharges refers to the total number of these types of charges you are billed by your carrier.?
Why is tracking # of Delivery Area Surcharges important?
It is important to track the # of Delivery Area Surcharges you incur, as they add up over time, especially if you are repeatedly shipping to the same locations. If you find yourself getting charged for these often, there are actions you can take. One of these includes using USPS instead of FedEx and UPS because USPS does not charge delivery area or residential surcharges. You could also look at using a regional carrier.
Types of Shipping Surcharges
Shipping surcharges (AKA accessorials) can add up on an invoice, making up a major portion of a shipper’s expenses.
With various names across carriers and annually (sometimes weekly) revisions, staying on top of these can be a chore.
Our latest blog tackles the different types of surcharges issued by UPS, FedEx, and the USPS.
Check it out to better understand how each impacts your bottom line, and read our tips on how to reduce their impact, or avoid them altogether.
We’ve Arrived at Manifest
Manifest is the premier showcase of cutting-edge logistics tech and we’re here in Vegas spotlighting SiftedAI!
Stop by booth #1524 to see SiftedAI in action and learn how it drives shippers towards $0 of overspending.
Connect with our representatives on LinkedIn: