USPS is done subsidizing Chinese package shipping

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11-25-2018, 05:38 AM
Mach

USPS is done subsidizing Chinese package shipping

This is a big deal for some, market-wise.

If you've ever looked into wholesaling you will see that China gets huge discounts to ship to the US, well, that's over with immediately!

Trump just pulled the plug.

Like him, or not, he just does stuff, and then does more stuff, it's very refreshing.

https://thehill.com/opinion/finance/...ckage-shipping

Quote:

Running a small business that ships low-weight merchandise, say 10 T-shirts or small hardware from China to the United States, made logistics costs easy. The U.S. provided for a large shipping discount of 40 percent to 70 percent.

Such generosity came from U.S. membership in the Universal Postal Union (UPU). Founded in 1874, the UPU is the international postal organization in Switzerland, committed to a smoothly running the international postal system.

In 1969, the UPU’s developed country members implemented discounts for poor nations when shipping small parcels. China then was isolated with few outward shipments.

As a result, the shipping cost of a face cream was more affordable from China for American consumers than it was from Los Angeles. Today, however, China delivers more than 1 billion small packages a year to the U.S., but the special discount treatment continued.

Then there came change. The Trump administration announced U.S. withdrawal from the UPU as of Oct. 17, 2018. The objective was to arrive at competitive and fair global shipping rates.

This move showed the Trump administration’s willingness to quit multilateral agreements judged unfavorable to U.S. interests. Although the UPU withdrawal process takes one year, U.S. deep discounts for Chinese packages ended immediately.

CONT....
11-25-2018, 08:46 AM
donnay

Good. Next...off to cut Amazon's USPS subsidies.
11-25-2018, 11:45 PM
axiomata

This is good.
11-26-2018, 08:41 AM
oyarde

This crap never made sense in the first place .
11-26-2018, 09:14 AM
juleswin

This is weird. I have heard on many many accounts here that the only time 2 entities voluntarily agree to a trade is when both sides have something to gain. What happened to that gain for USPS?
11-26-2018, 10:44 AM
Brian4Liberty

Quote:

Originally Posted by oyarde

This crap never made sense in the first place .

It was a global welfare and nation building program. Similar to the trade deals the US made with “poor” nations.

Quote:

In 1969, the UPU’s developed country members implemented discounts for poor nations when shipping small parcels. China then was isolated with few outward shipments.
11-26-2018, 11:22 AM
enhanced_deficit

Quote:

Originally Posted by Mach

If you've ever looked into wholesaling you will see that China gets huge discounts to ship to the US, well, that's over with immediately!

Trump just pulled the plug.

https://thehill.com/opinion/finance/...ckage-shipping

Had read this change was expected to be over a year away:

Quote:

The question between now and January 2020 will be who blinks first. What happens will determine the shape of international mail for years to come.

https://www.washingtonexaminer.com/o...l-postal-union

NVM, saw the detail in article:

Then there came change. The Trump administration announced U.S. withdrawal from the UPU as of Oct. 17, 2018. The objective was to arrive at competitive and fair global shipping rates. This move showed the Trump administration’s willingness to quit multilateral agreements judged unfavorable to U.S. interests. Although the UPU withdrawal process takes one year, U.S. deep discounts for Chinese packages ended immediately.

Now China Post has introduced a new Express Mail Service. It raised the price of packages to the U.S. from $30 to $34 for the first 0.5 kilograms shipped.