FedEx and UPS Reinstate Surcharges on Asia-to-U.S. Shipments as Trade Pressures Rise

Parcel shippers take note: Both FedEx and UPS are reintroducing temporary surcharges for shipments originating in Asia and entering the United States—specifically from China, Hong Kong, and the Philippines (FedEx) and from China, Hong Kong, and Macau (UPS). These changes reflect ongoing volatility in global trade lanes and have significant implications for e-commerce sellers, 3PLs, and cross-border shippers alike.

📦 FedEx Surcharge Effective April 15 – May 2, 2025

Tuesday, April 15, FedEx started applying apply a demand surcharge of $0.45 per pound on parcels from China, Hong Kong, and the Philippines entering the U.S., with a minimum charge of $1 per shipment. This short-term surcharge will remain in effect until May 2.

This isn’t FedEx’s first implementation of such fees. From September 2023 through January 2024, a $1 per-pound surcharge was imposed on the same trade lane. The new, reduced rate signals continued congestion and cost pressures across international shipping networks.

Source: FedEx Demand Surcharge for U.S. international services

📉 UPS Surcharge Effective April 13 – Until Further Notice

UPS has also implemented a surcharge of $0.29 per pound for shipments from China, Hong Kong, and Macau entering the U.S. This fee took effect on Sunday, April 13, and notably, UPS has not specified an end date. This suggests the potential for an extended application depending on network demand and trade dynamics.

Source: UPS Surge Fee

🔍 Why Are These Surcharges Returning?

Shippers are accelerating inventory imports to beat potential cost increases as U.S. customs policy tightens. A key change is coming on May 2 when the de minimis exemption—which allows imports under $800 to enter duty-free—will no longer apply to shipments from China and Hong Kong. Other countries will likely follow once U.S. Customs systems are updated to collect duties more consistently.

For e-commerce businesses that rely heavily on low-value shipments to avoid tariffs, this represents a major shift. Costs will increase not only due to the removal of duty-free status, but also from new clearance fees implemented by FedEx.

📋 FedEx Fee Updates for De Minimis Shipments

FedEx will introduce two new clearance-related fees for shipments arriving in the U.S. with a declared value of $800 or less:

• Disbursement Fee: $4.50 or 2% of the duties and taxes due—whichever is greater
• Duty and Tax Forwarding Fee: For shipments where duties are billed to a third party outside the destination country, the charge is $8.50 or 2% of duties and taxes—whichever is greater

For shipments over $800, the existing fee structure will remain unchanged, but many direct-to-consumer (DTC) sellers will now face increased costs for smaller orders previously exempt under de minimis rules.

🧭 What This Means for Shippers

For parcel shippers—especially those operating international DTC or omnichannel models—these updates require swift operational adjustments:

• Evaluate the financial impact of new surcharges and clearance fees
• Consider consolidating shipments or adjusting fulfillment models to minimize per-shipment costs
• Stay in communication with 3PL providers and customs brokers to ensure smooth transitions
• Explore alternative sourcing strategies as tariff exemptions narrow

While FedEx has indicated confidence in its readiness to manage these changes, the implications for shippers are real and immediate. As EVP and Chief Customer Officer Brie Carere noted in a recent earnings call, “Probably the largest impact would be customers coming out of the Asia market… we feel very ready to execute the necessary change.”

FedEx CFO John Dietrich added that while DTC de minimis shipments have helped sustain growth, most of their volume remains in business-to-business (B2B) exports, where planning and customs coordination are more mature.

📊 Final Thoughts

As customs policies tighten and surcharge activity increases, now is the time for parcel shippers to revisit their Asia-to-U.S. strategies. The return of demand-based pricing and the sunset of de minimis advantages could reshape shipping decisions for the rest of 2025 and beyond.

Stay proactive, monitor cost drivers, and work with logistics experts to help you adapt quickly. Every dollar counts in a highly competitive global market.

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