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.
In addition, on those weeks that Parcel Notes does not go out, we send a market update and analysis email to subscribers. ***If you would like to be added, please DM me***.
Several surcharge adjustments and other charges recently went into effect:
- Effective Aug 18 – FedEx and UPS will round all fractional measurements for package dimensions up to the next whole inch.
- Effective Aug 18 – FedEx will use a new pricing structure for parcel pickups occurring in the U.S. and Canada
- Effective Aug 18 – FedEx’s U.S. Inbound Processing Fee will increase for U.S. import shipments in connection with the processing of those shipments for clearance
- A note from UPS – Changes to the definition of Domestic Large Package Surcharge and Additional Handling Charge that were previously scheduled for August 17, 2025, including the addition of Additional Handling Cubic Size, Large Package Surcharge Cubic Size and Large Package Surcharge Weight, and the removal of Additional Handling Length plus Girth and Large Package Surcharge Length plus Girth definitions, have been delayed until on or after December 22, 2025.
Amazon
- Amazon is expanding same-day delivery to include perishable foods like produce and dairy for Prime members in over 1,000 U.S. cities, free for orders over $25, challenging rivals like Instacart and Walmart. Amazon plans to expand this capability to over 2,300 areas across the U.S. by the end of 2025.
FedEx
- FedEx launched two AI-powered tools — Customs AI and the Harmonized Tariff Schedule (HTS) Code Lookup Feature across Asia-Pacific markets. These solutions are designed to simplify the often-complex process of completing global shipping documents needed for international shipments, empowering businesses and individuals to ship with greater ease, accuracy, and confidence.
- According to Supply Chain Dive, FedEx’s upcoming spinoff of FedEx Freight is poised to shake up some of the carrier’s contract agreements, opening the door for shippers to consider new less-than-truckload options. Most of the LTL carrier’s volume is tied to standalone agreements, but most of its smaller customers have a bundled contract that includes FedEx’s parcel shipping services, EVP and Chief Customer Officer Brie Carere said in December 2024. Bundled contracts feature discounts for parcel delivery services the more LTL volume customers ship, Carere added.
UPS
- UPS has extended the deadline for package car drivers to apply for a buyout package by two weeks, an indication that the program didn’t meet its target for eliminating jobs. The Teamsters union has opposed UPS’s buyout plan as a violation of its 2023 master contract, which obligates UPS to create about 30,000 full-time jobs. Union leaders have urged members to decline the voluntary separation package.
- UPS agreed to resolve several outstanding grievances and a local contract dispute after the threat of a strike at the global air sortation hub in Louisville, KY, and package terminals in six other states was called off by the Teamsters union. However, the settlements have not solved all the Teamsters’ criticisms. Union representatives still counter that the company has not met its contractual obligations to deliver 28,000 vehicles equipped with air conditioning, saying UPS has only rolled out 10% of the required fleet so far. Additionally, the Teamsters say the delivery company has failed to create the 22,500 new full-time positions agreed to in the deal and has not paid penalty wages for overworking drivers.
That’s it for now. Stay tuned for the next newsletter Aug 20. 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. In addition, be sure to check out our growing number of videos on our YouTube channel and our website for more information.
Most important though, reach out if you’d like to learn how to lower or even possibly eliminate any parcel fees. 📦
-Jay.