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 on LinkedIn***.
- The U.S. ended de minimis on Aug 29 affecting global e-commerce and adding costs for businesses and consumers. The change is expected to result in more than $23.5 billion in additional customs revenues and fees over a decade, with other countries considering similar measures.
UPS
- UPS will levy a $2.50 international processing fee for U.S.-bound packages across Express, Express Plus and Express NA1 starting Sept. 8. FedEx increased its U.S. inbound processing fee from $1.50 to $2.50 on Aug 18.
- UPS offers buyouts to US operations managers to help network overhaul. The move comes after company executives said on a July 29 earnings call that employee attrition tied to 74 building closures didn’t meet the company’s expectations.
- UPS outsourced its proprietary weather-forecasting operations earlier this year to the Weather Co., the owner of the Weather Channel. UPS also shifted its technology support functions to third-party tech vendors, following a decision last year to outsource its chief investment officer functions to Goldman Sachs Group Inc. for certain pension portfolios.
- UPS announced peak season surcharges for the 2025 holiday season that are higher compared to last year. Per Supply Chain Dive, fees will take effect Sept. 28 for packages that are bulky, oversized or require additional handling. UPS will also start applying demand surcharges on Oct. 26, one of which applies to all Air, Ground Residential and Ground Saver packages. Another version of the demand surcharge targets higher-volume customers.
FedEx
- FedEx Supply Chain announced it will permanently lay off 611 workers by Oct 11 at two Memphis distribution centers which are locations for automotive parts manufacturer Cummins. Cummins contracted with FedEx Supply Chain in 2019 to distribute component parts, rebuild kits and remanufactured engines for the facilities.
Amazon
- Amazon announced that it will discontinue its Fulfillment by Amazon (FBA) prep and labeling services in the U.S. starting January 1, 2026. The program, which has provided labeling, poly-bagging, and packaging support, has been widely used by sellers to meet inbound shipment standards. Its removal is expected to affect thousands of businesses and increase demand for independent logistics providers.
That’s it for now. Stay tuned for the next newsletter Sept 17. 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.