I’m Jay Kent, managing director of SLB Performance, a consulting firm that helps companies reduce supply chain costs, implement BI tools, and improve in-stock and customer service. After 25 years of leading some of the most complex supply chains in the industry, I began advising companies in multiple industries and verticals.
It’s important to understand the market to mitigate costs and improve efficiencies. So, twice a month, I’ll share parcel news and thoughts. Be sure to hit the subscribe button to receive the latest newsletter in your LinkedIn notifications.
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Buckle up, lots of parcel news going on – new services from FedEx and UPS, facility closures and more changes to invoices that will impact shippers’ $$$.
New Services
- UPS announced the launch of UPS Global Checkout which “guarantees upfront the amount online shoppers pay in duties, fees and taxes, and eliminates the frustration of unexpected costs at delivery.” Per the announcement: “Customs duties, taxes and fees are a significant concern for international shoppers. Every day, tens of thousands of residential deliveries around the world arrive with duties and taxes payable on delivery.” The guarantee is an important part of this announcement. In 2014, UPS acquired i-Parcel, in integrated platform that supports merchant’s websites with a local language welcome mat, fraud protection, fully-landed total prices (including customs duties and taxes) in local currency and numerous value enhancing features. (Thanks to Logistics Trends & Insights LLC for sharing this tidbit.) However, the service wasn’t guaranteed at the time. Now with a guarantee, I imagine UPS hopes it will drive more interest and volumes.
- FedEx announced a new service, FedEx Easy Returns, supported by Blue Yonder. The service allows FedEx customers to access a low-cost, box- and label-free returns solution. The service will be available at 3,000 drop-off locations in the “trusted returns network” of FedEx Office and Kohl’s stores with plans for further expansion. This looks very much like UPS’ Happy Returns solution. In fact, prior to UPS acquiring Happy Returns, FedEx had partnered with Happy Returns for the same kind of solution that they are partnering with Blue Yonder.
- While not a new service, it’s certainly something to keep an eye on – new services, potential new surcharges etc…NTT Data and UPS announced a 10-year strategic collaboration. The agreement will help UPS continue to modernize its IT infrastructure and data centers while providing AI and cloud services to drive business innovation.
Highlights of the agreement (per the announcement):
- NTT DATA will purchase and operate one of UPS’s mission-critical data centers and enable colocation of IT workloads in-place. This includes using the best mix of public cloud and on-premises solutions to enhance efficiency and flexibility.
- NTT DATA will also help develop new solutions.
- These changes will support UPS’s plans to reallocate savings toward innovative projects designed to drive growth initiatives, including developing new digital-centric services for their customers.
Closures and Other Network Changes
UPS and FedEx continue to temporarily or permanently close facilities as they automate and optimize networks.
- UPS plans to temporarily close its Swan Island package facility in Portland, Oregon, and lay off up to 244 workers.
- FedEx notified the Tennessee Department of Labor and Workforce Development its Lebanon facility will part ways with 217 workers.
- FedEx Supply Chain announced it will wind down its operations at a Jacksonville facility and will lay off all 87 employees.
- Effective yesterday, April 1, USPS’ Ground Advantage and single-piece First-Class Mail volume will see an additional day in transit for volume originating in post offices more than 50 miles from a regional processing and distribution center. Also, effective April 1, Sundays and holidays will not be counted as transit days if the volume is entered into the Postal Service’s network the day prior. According to the USPS this move puts the agency in line with FedEx and UPS’ on-time delivery measurements.
Impacts on Shippers’ Invoices
Shippers need to monitor their invoices for the following UPS changes:
Effective March 31, 2025:
- A fee of $5.00 per invoice copy will apply for each printed copy of a UPS invoice sent to shippers or other payors.
- Payments made by check or wire transfer on or after March 31, 2025 will be assessed a fee of $25.00 per payment. This fee will not apply to ACH payments.
- The Late Payment Fee will increase from 8% to 9.9% of the total past due invoice balance, including past due late fees.
Effective May 19, 2025:
- A Payment Processing Fee equal to 2% of all other invoice charges will be added to each invoice.
- The Credit Card Surcharge will no longer apply.
- Also, effective March 31, UPS SurePost is now officially known as UPS Ground Saver service. Per the notice, all shippers must enter into an approved contract for UPS Ground Saver service. As I noted yesterday on LinkedIn, tt’s a bare-minimum type of service with fuel surcharges included – “the time and date of delivery for any package tendered for UPS Ground Saver service is not guaranteed” – but the service is probably at a high rate. 😉
FedEx and UPS Outlooks
In case you missed our latest video, check it out below. We talked about FedEx’s earnings and what FedEx and UPS are expecting in the quarter or two.
That’s it for now. Stay tuned for the next newsletter April 16. Don’t forget to hit the subscribe button to ensure you receive it in your LinkedIn notices. In addition, if you like what you’re reading, sign up to receive additional insights and analysis via emails twice a month – DM me for more info.
Most important though, reach out if you’d like to learn how to lower or even possibly eliminate any parcel fees. 📦
-Jay