Sharp Increase on Postal Cost to the USA due to Withdrawal from UPU

Shipping increase to USA may become true. Cost of postal shipping from China to the United States may increase significantly due to USA plans to withdraw from UPU in the near future (mid-October, 2019). Full title of UPU is the Universal Postal Union (https://en.wikipedia.org/wiki/Universal_Postal_Union).  The affected shipping methods include EMS, eYoubao (less than 2kg), airmail (less than 2kg), Chinese air, SAL, Surface and many other ways.

Postal cost increase to USA
USA withdraw from UPU

How does international shipping fee work?

The cost of international parcels mainly consists of two parts. One is the charges from the sending country, and the other is charges from destination country. For example, costs of an EMS package sent from Beijing, China (where the 42agent warehouse is located) to New York, USA  include: China Post’s cost from Beijing to New York, and the cost of delivering it from New York to the customer’s home.

Why Postal shipping increase if USA withdraw from UPU?

The UPU’s price rules require developed countries (such as the United States) to subsidize packages from developing countries (such as China) to a certain extent. As a result, the United States Postal Service (USPS) pays hundreds of millions of dollars each year. Today, the United States is reluctant to bear such subsidy costs. Therefore, the United States has 2 requests. 1. Withdraw from the UPU and negotiate freight rates with developing countries such as China alone. 2. Stay in the UPU, but the cost will increase significantly.

No matter whether the United States withdraws from UPU, postal parcels from China to United States are expected to be greatly affected. If the postal line shipping cost rises too much, it will also lead to a sharp increase in the quantity of parcels such as DHL and Fedex. Then it eventually leads to commercial express price increases, too.

At present, we have received notice of China Post’s expected price increase. However, the specific price changes are still unknown. It depends on the outcome of negotiations between United States and China and the UPU. If you have recently purchased plans from Taobao, Xianyu (second hand market of Taobao), 1688 or other China online shopping platforms, please be prepared to face the risk of a sharp increase in international shipping costs.

42agent will continue to monitor the progress of the event. We will notify all customers who ship to the United States once we get the exact shipping rate. We can’t control the changes in international shipping costs, we can only strengthen our service quality and continue to be your preferred Taobao purchasing service provider.

42agent team

September 29th, 2019

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