International on-line merchants are increasingly looking for alternative solutions for last mile delivery as parcel post rates are set to increase - and in some cases drastically.
Effective July 1st, the United Postal Union allows for the USPS - and all post offices - to set their own price. Previously, post offices were bound by UPU rules that forced post offices to delivery below costs.
Universal Postal Union (UPU) rule change originally projected to be a 5 year plan starting July 1. With that date quickly approaching, we are receiving the inquiries to Canada and to the US as parcel post are set to increase.
The USPS is seeking individual agreements with over 30 countries including shipping US to Canada.
As demand for deliveries have increased dramatically due to COVID-19 issues, the rate increase comes at a difficult time. On line shippers are now looking to ship directly and new parcel logistics solutions.
USPS increases can be significant for retailers who rely mostly on cross border online sales from the US but also for imports to the USA.
Jet Worldwide offers direct shipping and direct shipping options from North America to the UK, European Union, Japan and all the world's major economies (see link above).
Postage Resellers
Most major online retailers deal with USPS resellers / consolidators. The contractual terms usually call for increases at the start of each year and the timeline for this potential increase is unusual. In fact, there is no clear communication as to what will happen.
International consolidators who are subject to cost increases include:
Cross-border postage rates represent the combination of three services:
Shipping Direct to the USA and Canada:
Large retailers are increasingly connecting directly with USPS via Global Direct Entry or via a reseller and shipping direct to the US and Canada. Clearance to the USA can be set up directly via Section 321 express clearance including type 86 for large airfreight and ocean freight shipments.
Shippers are increasingly looking to ship direct by setting up their own internal logistics solutions for more control and lower costs. Contact Jet's team for shipping solutions to Canada.
Clearance and Delivery to the EU:
Jet Worldwide is also working with e-tailors who need bulk import and distribution across the EU. We are also getting many inquiries for shipping from Canada and the USA to the EU as postal rates - including from postal consolidators - are similarly expected to increase.
Clearance and Delivery to Canada
Rate Increase by postal services capped
The new UPU rules allows post offices to set their own pricing (referred to as self declare) but it must not exceed 70% of the domestic rates.
Post offices around the world are keen to protect their cross border e-commerce business with reciprocal rate setting.
Post Offices: Critical Infrastructure
Post offices represent critical public infrastructure for all e-commerce. Have a public utility of sorts can help small and medium sized retailers reach customers and suppliers around the world. Even with the price increases, their "small packet" services will likely remain the lowest cost solution for cross border shipping of shipments under 2 kg/ 4 pounds.
Ocean Freight to Post Solutions:
With new US customs processes (Section 321, Type 86), on-line merchants are now looking to build ocean freight processes direct to the US. Jet assists volume shippers can build scaleable dynamic multi-modal, multi-port, multi clearance solutions:
jetworldwide.com