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# 257349 27-Sep-2019 12:04
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Apologies if this has already been posted (couldn't see anything), but a recent agreement looks like postage rates for goods sent from China are set to increase, after the US' threats to pull out of the Universal Postal Union were successful in forcing chage:

 

https://www.stuff.co.nz/business/opinion-analysis/116140801/online-purchases-from-china-to-cost-more-after-us-postal-threat

 

Will be interesting to see what this does to the cost of getting goods here from AliExpress, eBay etc - I wonder if it'll bring about an end to the free shipping on a $2 item?!

 

Planet Money did a really interesting episode last year on the weirdness of the international postal agreement - https://www.npr.org/sections/money/2018/08/01/634737852/episode-857-the-postal-illuminati

 

 


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  # 2325886 27-Sep-2019 12:11
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I always thought that the cheap rates available from Ali, etc. were as a result of Chinese government subsidies to increase trade, although I have no idea as to whether this is true or not.




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  # 2325887 27-Sep-2019 12:15
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Maybe in part (and I don't know either way), but have a read of the article, listen to the podcast, or read up elsewhere on the same matter and you'll see it's certainly more than that:

 

 

The US had a legitimate concern. Under the current arrangements the member countries pay set rates to one another for mail and parcels delivered across borders. Since the late 1960s developing countries have had far lower "terminal dues" than developed economies.

 

It costs China Post, for instance, US$5 (NZ$7.90) to ship a parcel anywhere in the US. A similarly-sized parcel would cost a US shipper US$20 or more to deliver across state boundaries within America.

 


 
 
 
 


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  # 2325933 27-Sep-2019 12:35
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The second link was a bit strange. There is really no secret conspiracy here. The idea of lower rates for developing countries is fine until that developing country becomes a major exporter and competitor to local businesses.

 

It's going to be an a little more inconvenience and expense when purchasing small quantities of components, but those too good to be true prices were never going to last forever.





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  # 2325976 27-Sep-2019 13:18
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Yip, Rates from China to other countries are going to go up.... But for NZ it wont be till later in 2021

 

 

 

"The UPU renegotiation means from July next year, the US would be able to use "self-declared" terminal rates of up to 70 per cent of their domestic rates. Countries with smaller mail volumes would be able to follow in 2021."

 

"The US move would flow through to NZ Post receiving higher terminal rates for mail sent from developing countries like China. "We are on the scale one countries classed as a developed country," Walsh said. "We are a net importer as well (as the United States), so it's in our interests to have a higher terminal rate."

 

https://www.stuff.co.nz/business/116149293/president-trumps-threat-of-pexit-good-for-nz-post

 

Walsh is NZ Post chief executive David Walsh.


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  # 2325979 27-Sep-2019 13:24
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alexx:

 

The second link was a bit strange. There is really no secret conspiracy here. The idea of lower rates for developing countries is fine until that developing country becomes a major exporter and competitor to local businesses."

 

 

The UPU agreement is based on letters , other things were added as time went on.... 

 

But the ability of everyone being able to order things from another country was never envisaged when the process for setting terminal rates was created.... but like many international agreements it is consensus based, meaning changing it is really hard....


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  # 2325981 27-Sep-2019 13:27
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Gurezaemon:

I always thought that the cheap rates available from Ali, etc. were as a result of Chinese government subsidies to increase trade, although I have no idea as to whether this is true or not.

 

 

There is/was government subsidies for the online trading sites.

 

 

Postage from China to the outside world for the average Chinese citizen is not cheap even by western standards.

 

 

I think shipping costs on Aliexpress have been going up anyway - at least on the stuff I shop for.

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  # 2325985 27-Sep-2019 13:36
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I think @sbiddle knows a bit about this. IIRC the price we pay for postage sorta pays for these parcels, and vice versa from China with their postage rates, BUT the sales are very one sided, i.e. we import far more parcels than are sent to China, so we spend more time and money handling them than we get back. Summit like that!


 
 
 
 


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  # 2326013 27-Sep-2019 14:10
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The cheap shipping comes from massive volume and excellent pre-sorting at their end from the consoldators. Casual rates from china to here are as bad as any other place.

 

Im not sure what changes will come from this on the envelope sized things that are typically the $2 things, its the larger things that they were getting massive discounts on compared to domestic US shipping.





Richard rich.ms

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  # 2326084 27-Sep-2019 14:59
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richms:

 

The cheap shipping comes from massive volume and excellent pre-sorting at their end from the consoldators. Casual rates from china to here are as bad as any other place.

 

Im not sure what changes will come from this on the envelope sized things that are typically the $2 things, its the larger things that they were getting massive discounts on compared to domestic US shipping.

 

 

FWIW, I've had a lot of success by paying for the lowest tier of shipping, instead of using the free shipping. Most things arrive within a couple of weeks, instead of the "up to 2 months" that the free shipping does. This usually adds only a dollar or so onto the total price.


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  # 2326100 27-Sep-2019 15:52
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Many of my cheap AliX purchases come from a place called UCL in Auckland. Presumably they are some sort of freight forwarder? Never understood how postage can still be so cheap/free as they wouldn't benefit from the postal Union agreements

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  # 2326120 27-Sep-2019 16:36
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nickb800: Many of my cheap AliX purchases come from a place called UCL in Auckland. Presumably they are some sort of freight forwarder? Never understood how postage can still be so cheap/free as they wouldn't benefit from the postal Union agreements

 

I asked and there was something to do with them being an international carrier so able to bring things over in sacks and then pass them onto NZ post for final delivery. They pre sort them and stuff which is why the UCL things get here very quickly since they basically go straight out once they arrive. 





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