UPS Rises 0.46% Amid 178th Trading Rank as New Fees Align with Industry Regulatory Shifts

On August 27, 2025, United (United Parcel Service, UPS) traded with a volume of $0.48 billion, ranking 178th in market activity. The stock rose 0.46% amid strategic adjustments and regulatory shifts in its international logistics operations.

UPS announced a $2.50 international processing fee for U.S.-bound packages under its Express, Express Plus, and Express NA1 services starting September 8, following the expiration of the De Minimis exemption on August 29. This policy, part of President Trump’s executive order, eliminates duty-free treatment for low-value imports, requiring customs clearance and tariffs. UPS also introduced a $10–$20 entry preparation charge for Canada-to-U.S. shipments under its Standard service. The move aligns with broader industry trends, as competitors like FedEx have similarly raised fees to offset increased operational costs from the regulatory change.

The De Minimis expiration has disrupted global postal networks, with over 30 countries temporarily suspending U.S.-bound parcel shipments due to compliance uncertainties. UPS’s cost-cutting measures, including workforce reductions of 20,000 employees (4% of its global workforce) and facility closures, aim to counter revenue declines driven by weak demand and geopolitical uncertainties. Management cited reduced business with Amazon, its largest customer, as a key factor in restructuring efforts. First-half 2025 consolidated daily package volumes fell 3.8% year-over-year, contributing to a 2.7% revenue decline in the June quarter.

Earnings estimates for 2025 reflect a 15.4% year-over-year drop in adjusted earnings to $6.53 per share, with revenue projections indicating a 3.9% decline. Despite a forward P/E ratio of 12.32X, below industry averages, analysts caution that UPS’s elevated dividend payout ratio (87%) and weak free cash flow generation ($742 million in H1 2025 vs. $2.7 billion in dividends) limit long-term sustainability. The company’s Zacks Rank #4 (Sell) underscores near-term risks from volume weakness and regulatory headwinds.

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