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The End of Cheap Shipping From China – The Atlantic

The White House wants to put an end to low-cost shipping from overseas, a move widely supported among U.S. e-commerce sellers.

Every day, Americans buy tens of thousands of cheap products from China—jeans, electronics, things made of plastic. Two months ago, I even bought a wedding dress.

We buy stuff from China mostly because the low cost of living and lax labor regulations allow manufacturers to make products cheaply there. But there’s another reason, too. It’s really cheap to send stuff from China to the United States, which means sellers there can charge barely anything to ship an already-cheap item 6,000 miles across an ocean. Want an eyebrow razor? On Wish.com, a site that sells products directly from China, you can buy one for 95 cents, plus a $2 shipping fee. A similar eyebrow razor on Walmart.com, by contrast, costs $2.62 for a three-pack, but there is a shipping fee of $5.99. According to congressional testimony, at current rates, shipping a parcel to Fairfax, Virginia, from North Carolina would cost $1.94. From Shanghai, it would be $1.12.

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Industry News UPS News

UPS, USPS praise move to pull U.S. out of international shipping treaty – FreightWaves

Continuing efforts to fight what he says are unfair trade practices, the administration of President Donald Trump announced the U.S. will pull out of the Universal Postal Union (UPU) treaty. The treaty, agreed to in 1874, sets fees for international shipping of mail and small parcels (under 4.4 pounds) around the world. Since 1969, the treaty has assigned lower shipping rates to developing countries, including China, in an effort to boost their competitiveness globally.

UPS spokesperson Kara Ross sent FreightWaves this statement on behalf of David Abney, chairman & CEO of UPS. “UPS believes the administration took the right step in addressing the inequities of the UPU system of terminal dues. Foreign postal operators should not be given government approved advantages in what is a competitive market. All parties should pay the same parcel delivery rates for the same services from the U.S. Postal Service, regardless of whether the country of origin is foreign or domestic.”

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Industry News UPS News

The drones are coming – Fleet Owner

Unmanned aircraft can help with package deliveries, yard and depot surveillance, traffic management, and more. How are drones being used and tested today, and what does it mean for delivery drivers?

While testing remains in the early stages, this past summer the company received a patent for product-distribution warehouses that float in the sky and are carried and held aloft by blimps. It is part of Amazon’s plan to move toward more drone deliveries from ground-based shipments.

The floating warehouses, or aerial fulfillment centers (AFCs), “may be positioned at an altitude above a metropolitan area and be designed to maintain an inventory of items that may be purchased by a user and delivered to the user by a UAV that is deployed from the AFC,” the patent document said.

Elsewhere, UPS in early 2017 made a successful delivery by drone in partnership with Workhorse, an Ohio manufacturer of the unmanned aircraft as well as electric and hybrid electric vans and pickups.

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Industry News UPS News

Are Amazon, UPS, Others Prepared for USPS’ Proposed Price Hike? – Zacks

On Oct 11, U.S. Postal Service (USPS) proposed a price increase for its parcel select service. The proposed price hikes will be going into effect in January 2019 if approved by the Postal Regulatory Service. USPS’ parcel select service is used by Amazon.com, Inc. (AMZN – Free Report) and the likes of FedEx Corporation (FDX – Free Report) and United Parcel Service, Inc., the last and unarguably the most expensive step in the shipping process.

In fact, President Donald Trump has had earlier criticized the e-commerce giant by saying that the USPS is losing billions of dollars every year by charging Amazon and others too little to deliver their packages.

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Industry News UPS News

USPS proposes Amazon pay up to 12 percent more for shipping – CNBC

  • The U.S. Postal Service has proposed a 9-12% increase to the shipping service used by Amazon.com.
  • The parcel select service, which is also used by United Parcel Service and FedEx, is the last and typically the most expensive step in the shipping process that gets the packages to customers’ doorsteps.
  • The USPS proposed a 9.3 percent increase on this service for packages weighing over one pound and a 12.3 percent increase to lighter packages.