FedEx and UPS, the two major international express delivery giants, will simultaneously implement significant price hikes and stricter billing rules in mid-August. Sellers are facing significant upward pressure on logistics costs, with some fees increasing by as much as 67%.

1.Details of price increase and Rule Adjustment (Effective in mid-August)

FedEx Adjustment (Effective August 18th) :

1? ? the handling fee for inbound parcels to the United States has soared: the handling fee for all parcels entering the United States has been raised from $1.5 per parcel to $2.5 per parcel, an increase of up to 67%.

2? ? new regulation: When measuring the length, width and height of a package, if the last digit is less than 1 inch (or 1 centimeter), it should be rounded up.

Impact: The volume and weight of the package can be easily magnified by "water injection" (up to nearly 20% at most), resulting in a significant increase in freight charges.

Original rule: 20.1 inches → Rounded down to 20 inches

New rule: 20.1 inches → rounded up to 21 inches

UPS Adjustment (Effective August 17th) :

? Reform of charging rules for large parcels: Abolish the traditional "length plus perimeter" model and adopt a stricter dual standard of cubic volume and weight to define large parcels.

? Large parcel surcharge (LPS) trigger point: domestic parcel cubic size > 17,280 cubic inches (0.28m?) or weight > 110 pounds (49.9 kg).

? The threshold for additional processing surcharge (AHS) has been significantly tightened: the trigger point has been reduced to 640 cubic inches (0.14m?), a decrease of nearly 60% compared to before (meaning that more packages may be charged AHS).

2.The three types of seller groups that will be most affected

1? ? sellers of light and bulky goods (such as clothing, home decorations, toys) :

Under the new volumetric weight rule, rounding up the dimensions leads to a significant increase in volumetric weight, far exceeding the actual weight, resulting in a disproportionate surge in freight charges.

2? ? large item seller:

The product size is prone to "crossing the line". Once the cubic size exceeds 0.28m?, it will directly trigger the LPS surcharge, and the cost will increase sharply.

3? ? us market cross-border sellers:

FedEx's entry fee to the United States has soared by 67%.

Local delivery residential surcharge + possible trigger large item surcharge (LPS/AHS).

The cost per ticket may soar by several hundred dollars.

3.Emergency response strategies for Small and medium-sized sellers

1? ? optimize immediately to reduce costs (in the short term)

? accurately calculate shipping fees: immediately use the official FedEx/UPS tools to calculate the specific changes in shipping fees under the new regulations.

? optimize packaging:

Try your best to reduce the size of the outer box of the package, especially avoiding the critical value (20.1 inches).

Choose more compact and sturdy packaging materials.

? Adjust pricing strategy: Based on the calculation results, consider whether to adjust the selling price of goods or the setting of shipping fees.

2? ? adjust the operation mode to avoid risks (medium and long-term)

? overseas warehouse inventory:

Stock up the goods in advance to the overseas warehouse in the United States.

Benefits: Avoid high cross-border freight charges (especially the skyrocketing entry fees); It can be split and dispatched locally, effectively avoiding the large item surcharge (LPS/AHS). Choosing a branch warehouse in the East or West of the United States can reduce the surcharge for remote areas.

? Local distribution splitting of large items: For large items, when shipping from overseas warehouses or locally, they are split into multiple small packages that comply with the rules to avoid triggering LPS/AHS.

4.Yangcheng International helps sellers meet challenges

? Professional packaging optimization: tailor-made packaging solutions to minimize volume;

? Flexible splitting and shipping to avoid large item surcharges: Large items can be split into small packages that comply with the new UPS/FedEx regulations at the warehouse end, effectively avoiding triggering LPS/AHS surcharges;

? Optimize local distribution routes and costs: By leveraging the east and west coast (Los Angeles/New York) and central (Chicago) branch warehouses, combined with the southern (Savannah) and core hub layout, intelligently select the nearest warehouse for shipment, significantly reducing the last-mile delivery distance and additional charges for remote areas.

Act now and join hands with Yangcheng International to reduce costs! Flexibly applying Yangcheng International's packaging optimization and multi-warehouse collaborative overseas warehouse services is a reliable strategy for you to cope with the current logistics price increase storm and achieve long-term cost reduction and efficiency improvement.