AMS Fulfillment: Notice on Universal Postal Union Rate Action
Posted by AMS / Wednesday, July 8, 2020
The following Rate Action Notice is of interest to all international shippers that are using International Postal Services and/or those governed under the Universal Postal Union (UPU). This would include DHL eCommerce and Passport international services.
The UPU Rate Case will be in effect July 26, 2020. The timing of this rate action is in alignment with postal service providers’ price changes as a result of the Universal Postal Union (UPU) vote to allow for postal entities to transition to self-declared rate models.
This action means that all countries are now allowed to (self declare) or set their own rate models going forward. This change will have some effect with certain countries based on the shipping methods used. We are seeing a larger impact on rate increases for those using the International Standard DDU services. However, the International Parcel Direct Service will have minimal or very slight changes.
We have been working with both DHL eCommerce and APC Passport on dynamic routing, which will help to navigate through the UPU Rate Case. The UPU Rate Case is impacting the industry in that all postal carriers’ rates will increase, some more than others. DHL eCommerce network built with layers of redundancy will allow for more favorable pricing than postal carriers, solely dependent on USPS services.
The DHL eCommerce Parcel International Standard Services will be affected as these services use international postal lanes, however, the DHL eCommerce Parcel International Direct services will have little to no change due to our direct injection routes. We will help guide our clients as to the best shipping strategy utilizing DHL eCommerce or APC Passport suite of services.