Recently, protests have erupted in Europe, and port transport has seen new developments. Logistics company Kuehne+Nagel warned that on October 30, more than 50 ports in Europe and the Mediterranean plan joint union actions; some ports may shut down, depending on local arrangements.

For sellers shipping during peak season, logistics changes continue. UPS and FedEx have announced new rate adjustments, both averaging 5.9%. Meanwhile, global freight giant DSV has begun clearing low-priced, loss-making customer business. One affects last-mile costs; the other involves freight forwarding choices. Sellers must calculate not only how much freight has risen, but which products’ margins can still hold.

01. Freight rates rise, sellers must recalculate

According to UPS's 2027 rate adjustment, from December 21, 2026, daily rates for ground, air and international services will rise by an average net5.9%. UPS said this supports network expansion and service capability, but actual cost changes depend on package characteristics and contract terms.

Besides base rates, UPS adjusted several billing rules.

First, the minimum billable weight for Additional Handling packages will rise from 40 to 50 pounds. This only affects packages that meet additional handling conditions. Sellers with large shipment volumes or oversized products need to check which items may incur such fees.

Second, UPS adjusted ZIP code ranges for some area surcharges and shipping zones. U.S. last-mile costs depend not only on package weight and destination state, but also on specific ZIP codes, service types and contract prices.

Third, small business rates will also change. UPS announced that published rates for small business ground, air and international services will increase by 4.5% from December 21; some eligible customers will face a new per-package surcharge for certain ground services. Details await further disclosure.

So sellers should not simply estimate costs at 5.9%. Analysts at logistics platform Loop caution that 5.9% is only the average base-rate increase, not the exact bill change for every seller.

Moreover, the adjustment lands during the year-end peak season in Europe and the U.S. For U.S. domestic orders, base freight, fuel surcharges and peak-season surcharges will stack up, possibly far exceeding a simple 5.9% estimate.

FedEx is also raising prices. From January 4, 2027, standard rates for U.S. domestic, export and import packages will rise by an average of 5.9%, along with some minimum rates, delivery area surcharges and other transportation fees.

The two U.S. express giants have announced price hikes, raising sellers’ concerns over higher logistics costs. One seller said: “Profits are cut again; peak season is busy for nothing.” Another said: “Everyone is raising prices—peak season is impossible.” Sellers relying on air freight and small parcels face similar pressure: “Air freight rises every day; small parcel sellers cannot bear it.”

How much pressure freight increases bring can be seen from earlier cases.

In June, Reuters reported that Chinese cross-border e-commerce sellers faced rising international shipping costs. Diana Qiao, a Temu women's clothing seller in Shenzhen, said shipping cost per garment rose by an average of $1. To protect profits, she raised prices by $2; sales then declined slightly.

This shows the dilemma for low-ticket items: raising prices may hurt conversion, while holding prices squeezes profit. For products with thin margins, freight changes are hard to absorb alone.

Therefore, sellers should not uniformly raise all prices, but recalculate per-shipment costs by weight, size and delivery zone. High-volume sellers can confirm contract discounts, surcharges and effective dates with logistics providers in advance; for low-margin SKUs, they should evaluate whether continued investment still makes sense based on selling price, promotions and fulfillment costs.

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02. DSV proactively clears low-profit customers

If UPS and FedEx's adjustments directly affect transport costs, DSV's move sends another signal to cross-border logistics.

On October 21, global freight giant DSV announced Q3 2026 results. According to The Loadstar, DSV's combined air freight tonnage and ocean freight TEU fell 3% year over year in Q3. CEO Jens Lund said about2 percentage points came from proactively clearing low-priced, loss-making customer business, while the rest was linked to lower volumes.

In other words, the decline was not entirely due to weaker demand; part came from DSV giving up orders with unsatisfactory returns.

Financially, Q3 revenue was about 80.7 billion Danish kroner, up 10.5% year over year; EBIT before special items was about 6.6 billion kroner, up 19.5%. Air and ocean segment profit rose 18.9%.

Warehousing is also being adjusted. DSV continues to consolidate less profitable warehousing sites. Contract logistics EBIT before special items rose 50.3% in Q3, attributed to integration synergies and improved operational efficiency.

For freight forwarders, high volume does not mean high profit. If a shipment is quoted too low and leaves little profit after transport, warehousing, handling and other costs, it may not be worth handling. DSV's clearing of low-yield customers reflects this trade-off.

Of course, this does not mean low-margin sellers will be rejected, nor that small and medium sellers’ booking priority will always decline. But for sellers relying on freight forwarders, overseas warehouses and last-mile delivery, choosing a logistics provider cannot be based on price alone; service stability, peak-season support, surcharges and exception handling also matter.

Especially during peak season, logistics problems can affect more than freight. Delays disrupt restocking, warehousing and inventory turnover.

For sellers, rising logistics costs are not just to be accepted passively. Recalculating key SKU profits, confirming new rates early, and preparing backup logistics channels can all be done in advance.

Peak-season shipping is not just about order volume. Only when freight is calculated clearly and logistics can support it can products truly convert into profit.

(Source: Cifnews editorial team)

Seller’s Home comment

With multiple costs stacking up before the peak season, sellers must immediately recalculate profits on European and Mediterranean routes, compare quotes after UPS and FedEx price hikes, and lock in controllable logistics plans in advance.

Source: Cifnews
Original link: https://www.cifnews.com/article/189725