FedEx is also implementing a demand surcharge for parcel shipments from China, Hong Kong, and the Philippines starting Tuesday. This fee is set at $0.45 per pound, with a minimum charge of $1 for each shipment, and will remain in effect until May 2. FedEx previously instituted a similar surcharge on imports from these countries between September and January at a rate of $1 per pound. The company stated, “FedEx continues to make adjustments within our network to best deliver for our customers.”

UPS’s Surge Fee can be modified at any time and is calculated based on the shipment’s billable weight, also subject to UPS’s fuel surcharge. The Surge Fee was previously in effect for two weeks in March. UPS aims to meet shippers’ needs without compromising on the quality or timeliness of service.

The return of these surcharges comes as supply chains grapple with fluctuating trade relations between the U.S. and China, alongside significant price increases for goods moving between the two nations. Starting Saturday, China will raise tariffs on U.S. imports to 125% in retaliation for similar increases by the Trump administration. Additionally, the U.S. plans to eliminate the de minimis exemption for items from China and Hong Kong on May 2, exposing imports valued under $800 to tariffs.

The reintroduction of these fees adds to the financial pressures faced by UPS and FedEx customers this year. A recent wave of added fees and rate hikes from both companies is contributing to rising parcel costs, with the TD Cowen/AFS Freight Index projecting a 2.6% year-over-year increase in ground delivery rates for the second quarter.