COVID-19 continues to wreak havoc on supply chains and shipping around the world, and an e-commerce-focused peak season is only piling on. Following FedEx’s previously announced rate increases and late fees set to take effect in 2021, the shipping giant implemented another surcharge increase for parcel and freight shipments originating in Asia Pacific (APAC).
“Beginning Nov. 30 through Dec. 27, the surcharge amount for FedEx Express international parcel and freight shipments originating in Japan, Korea, Hong Kong and the Philippines will increase as will the surcharge amount for FedEx Express international parcel shipments originating in China. On Dec. 28, these surcharge amounts will return to current levels. Updated amounts can be found here.”
According to FedEx, the reasoning behind the increased surcharge is limited air cargo capacity and incurred incremental costs related to COVID-19.
As Logistyx previously noted: As consumers increasingly turn to omnichannel shopping to safely buy goods during and beyond the pandemic, shipping volume has increased exponentially, putting increased demand on carriers and leading to the rollout of these surcharges and increased rates to offset costs.
Growing their carrier network can help any business effectively tackle these challenges by introducing more options and capacity into the parcel delivery mix. Implementing a multi-carrier shipping strategy can help businesses increase stability to quickly react to carrier surcharges and rate increases and effectively control costs. By leveraging a cloud multi-carrier shipping system, businesses can provide a consistent level of service to customers despite the surging demand for carrier capacity by accessing and automatically comparing different carriers’ rates to select the optimal carrier service for each shipment.
Logistyx continues to offer advice and solutions for shippers seeking to adapt to these changes and effectively manage costs; check out the following blog posts:
- 3 Ways a Transportation Management System for Parcel Shipping Reduces Transportation Costs
- Prepare for a Shipping Capacity Strain this Holiday Season
- Holiday Shipping Deadlines 2020: What You Need to Know
- Carriers Warn of 7 Million Too Many Daily Packages for the Holidays
And white papers:
- Simplifying Multi-Carrier Parcel Management for Peak Season and Beyond
- eCommerce Checklist for Peak Season
- Why Shippers Can’t Afford to Overlook Regional Carriers
- Future-Proofing Supply Chain Management
To learn more about how a multi-carrier shipping system can help your business optimize parcel shipping to help control costs, contact us today.