United Parcel Service Inc. (NYSE:UPS) and FedEx Corp. (NYSE:FDX) are facing challenges with the tightening of U.S. de minimis exemptions, impacting trade flows and increasing costs as the peak shipping season nears. Bank of America Securities downgraded both carriers due to weakening demand and rising costs, with UPS being cut to Underperform and FedEx to Neutral by analyst Ken Hoexter. Hoexter also reduced price forecasts and earnings estimates for both firms, citing a soft peak backdrop for 2025. Both UPS and FedEx are grappling with various headwinds, including reduced international parcel flows and inflationary pressures.

Read more at Yahoo Finance: De Minimis Shock Morphs Into De Majoris Challenge For UPS And FedEx