If you are a large international shipper getting discounted USPS shipping through a consolidator, you have seen a significant rate increase starting July 1, 2020 due to the USPS International price change. (Customers who use Endicia for single package international shipping labels did not see a rate increase on July 1)
The rate increase is due to the U.S. agreement with the Universal Postal Union (UPU) that was signed in September 2019. The United States had threatened to leave the UPU if they could not self-declare terminal dues (i.e. shipping rates) for countries that had inbound letter and small parcel volumes in excess of 75,000 metric tons. The Universal Postal Union (UPU) is the governing body that helps postal services around the globe facilitate the delivery of mail and packages amongst each other.
Terminal dues are the fees that a national postal service is charged to have packages delivered in another country. Under the new UPU agreement, the USPS has increased its terminal dues to about 70% of the U.S. domestic rate, which experts believe will result in significantly increased postage rates from other countries, especially China where manufacturers were able to deliver a package from China to the U.S. cheaper than a domestic U.S. delivery.
According to Supply Chain Dive magazine, 31 countries will be reciprocating the U.S.’s self-declared rates for outbound shipments on parcels weighing 4.4 lbs. or less. The U.S. is negotiating new agreements with many additional countries, so other country shipping rates may change soon after July 1, 2020.
Endicia customers who are using international delivery through a consolidator will be contacted by a GlobalPost sales rep to discuss additional shipping options, including GlobalPost Economy (country to country tracking) and GlobalPost Standard (door-to-door tracking) where we offer the same shipping experience at rates that are protected from the USPS international rate increase.
The GlobalPost delivery network leverages partnerships with international postal operators as well as commercial carriers to offer worldwide delivery. GlobalPost services reach over 200 countries and territories and includes features not found in traditional international postal services, including:
• Global Address Verification: Improve deliverability with real-time address verification
• No Customs Forms: Send Customs electronically – no forms to print
• Ship Merchandise in Flats: Save money with international flats/large envelopes
• Instant Refunds: No more tracking refund requests that can take up to 2 weeks
• Free Pick-Up Service: Schedule pick-ups when it’s convenient for you (select markets only)
• Parcel Coverage: $100 Included
Call 888-899-1255 to contact GlobalPost today