To help keep shippers like you up to date, Transportation Impact has compiled a summary of the week’s news related to COVID-19 and its impact on the logistics world. We’ll continue to provide weekly updates as the situation warrants, with more frequent updates through social media via the links below and view our live Twitter feed below.

  • UPS Announces Decrease in Peak Surcharges on China to US Shipments (June 23)
    Effective June 28, 2020 until further notice, the amount of the Peak Surcharge applied to shipments from China Mainland to the U.S. will decrease, as market conditions have continued to evolve with the ongoing coronavirus situation. Read More
  • FedEx Announces Peak Surcharges to include Residential, Oversize, and SmartPost Packages (June 5)
    UPS will be charging SmartPost shippers an additional $.40 per package, Oversize Express and Ground shippers an additional $30 per package, and Residential Express and Ground shipments (over 40,000/week) an extra $.30 per package. Read More
  • UPS Announces Peak Surcharges on Domestic Shipments (May 26)
    UPS will be charging Large Volume Ground Residential and SurePost shippers an additional $.30 per shipment, and Large Package shipments over 500 a week an extra $31.45 per shipment. Read More
  • FedEx Announces Increase to Peak Charges for International Shipping (May 20)
    FDX announces increased charges for International Freight shipments coming from China, as well as increased surcharges for parcel shipments coming out of Hong Kong and the Philippines. Read More
  • UPS Announces Peak Surcharge Changes (May 15)
    As previously announced, a Peak Surcharge applies to certain international shipments from all origins to all destinations, including the U.S., effective April 12, 2020. Effective May 24, 2020 until further notice, the amount of the Peak Surcharges applied to shipments from China Mainland and Hong Kong SAR to the U.S.1 will increase, as market conditions have continued to evolve with the ongoing coronavirus situation. Read More
  • TI Analysis: UPS Notes New ‘customer by customer’ Price Negotiation Strategy on Recent Earnings Call
    The recent earnings call from UPS brought several important details to light about changes to the marketplace the company is facing (see United Parcel Service Inc (UPS) Q1 2020 Earnings Call Transcript).​  Read Our Detailed Analysis
  • Changes to Surcharges and Fees (April 27)
    Beginning April 27, the surcharge amount for most FedEx Express and TNT international parcel and freight shipments originating in China will increase from $0.45 per pound to $0.90 per pound ($1.00 per kilo to $2.00 per kilo). Local currency conversions will apply.​  Read More
  • Big Shifts in Fuel Surcharges for International Shippers
    UPS recently made a quiet change to its International Air-Export and International Air-Import Fuel Surcharge table that its customers, and those who use FedEx, should take note of. Driven by the severe drop in the price of oil that’s resulted from the COVID-19 pandemic, the price of jet fuel is at its lowest since 2002.  Read Our Detailed Report
  • UPS Peak Season Surcharge Update (April 7)
    From the UPS website: “As previously announced, a Peak Surcharge will apply to UPS Worldwide Express, UPS Worldwide Express Freight, and UPS Expedited shipments originating from China Mainland or Hong Kong SAR to North America and Europe regions, effective April 5, 2020. Effective April 12, 2020 until further notice, the amount of this Peak Surcharge will increase and additional Peak Surcharges will apply to international shipments with other origins and/or destinations.”  Read More
  • FedEx International Services Update (April 6)
    From the FedEx website: “We are still delivering under state-of-emergency and shelter-in-place restrictions issued in various parts of the world. These restrictions are disrupting the global supply chain. Air cargo capacity is limited, and we’ve had to make adjustments so that our international networks can best deliver much-needed goods and services in this constrained environment. To continue providing our customers with the best possible service during this time, we are implementing a temporary surcharge on all FedEx Express® and TNT international parcel and freight shipments beginning April 6.” Read More

NOTE: It bears repeating that both carriers announced the suspension of their money-back guarantees

Click to Read - FedEx and UPS Suspend Money Back Guarantees

Small Parcel Articles of Interest:

  • UPS and FedEx surcharges are here to stay. How do shippers negotiate prices?

    With no end in sight to parcel fees, shippers can negotiate other pricing elements of carrier contracts to bring down total costs.   Read More
  • UPS negotiates pricing 'customer by customer' as shift to residential delivery hits profits

    The smaller parcels and increased stops associated with even the densest residential delivery routes took a bite out of UPS' margins and prompted analysts to wonder if further pricing increases will be necessary to compensate, because consumer business is more expensive and less lucrative for carriers like UPS.   Read More
  • As Deaths Mount, Delivery Workers Say They're Kept in the Dark Over Who's Sick

    "How are any of us supposed to get ahead of a virus when we don't even know who’s sick?" asked one UPS employee.  Read More
  • Feds Lean on Carriers in Fight Against the Coronavirus

    Trucking companies are diligently working with the federal government in an effort to defeat the coronavirus.  Read More
  • Amazon to Suspend Delivery Service Competing with UPS, FedEx Inc has put on hold a new delivery service that competes with UPS and FedEx, the Wall Street Journal reported on Tuesday, citing people familiar with the matter. Read More
  • UPS, Teamsters Reach Agreement on COVID-19 Pay and Time Off

    How freight companies handle paid leave for COVID-19, and other issues related to coronavirus, is a major concern of employees and the public. With the U.S. Department of Homeland Security also declaring UPS and its peers as critical infrastructure, UPS and other freight companies have stepped up communication efforts. Read More
  • Some FedEx Pilots Removed From Duty After “Inconclusive” COVID-19 Tests

    An unspecified number of FedEx pilots were flown back to the U.S. from China and removed from flight duty after getting “inconclusive” results on COVID-19 tests.  Read More

Logistics / Supply Chain Articles of Interest

  • The Impact of Coronavirus (COVID-19) on Consumer Behavior

    As stay-at-home orders begin to lift or relax across the country, impact on shopping behavior remains stable, and consumer concern declines slightly. Read More
  • FMCSA Extends HOS Emergency Declaration Through May 15

    An extension into May of hours-of-service relief for motor carriers included an addition that covers transport of gases needed for refrigeration units, the acting head of the Federal Motor Carrier Safety Administration said. Read More
  • Now, a Different Kind of Epidemic: Force Majeure Claims

    The coronavirus pandemic has brought chaos to supplier-buyer relations the world round, resulting in widescale invoking of the contract-breaking clause known as force majeure. Read More
  • FedEx Freight Furloughs Undisclosed Number of Workers

    The announcement by FedEx comes less than a month after its earnings call, in which it highlighted how well FedEx Freight had done for its third fiscal quarter, ended Feb. 29.  Read More
  • Drilling Deep: Getting That Relief Money From Washington into the Right Hands

    On this week’s Drilling Deep, host John Kingston heard from Jack Rybicki, a managing principal at the accounting and consulting firm CLA. Jack has been steering many clients through the process of trying to get money from the federal government under the CARES Act. Read More
  • Coronavirus Watch: ALAN Launches SC Intelligence Center, Amazon May Suspend French Deliveries

    The American Logistics Aid Network (ALAN) has launched the ALAN Supply Chain Intelligence Center. The initiative provides a cloud-based, real-time view of the latest COVID-19 impacts through a map that includes the status of roads, ports and airports, as well as the policy changes at national, state, local and county levels. Read More
  • Coronavirus: A Lesson in Supply Chain Risk Management

    The Chinese government notified the World Health Organization of an unusual illness in the city of Wuhan last December 31. This illness was later identified as a novel coronavirus and named COVID-19. Read More

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