UPS to increase air rates by 4.5%, ground rates 4.9% in 2013

Package delivery giant UPS is making a 4.5% net increase to its UPS Air services, and a 4.9% for its UPS Ground services for next year. The company will also make a 4.5% increase for its US-origin outbound international services, it said on Friday.

Atlanta-based UPS said the increases for UPS Air and International Services comprised a combination of a 6.5% increase in rates, and a two percentage point cut in fuel surcharges.

The UPS Ground Services rate change represents a 5.9% increase in rates and a one-point reduction in fuel surcharges.

For its air freight services between the US, Canada and Puerto Rico, including UPS Next Day Air Freight, UPS 2nd Day Air and UPS 3 Day Freight, rates will increase 4.9%.

The company said its UPS Express Freight rates for shipments originating in the US will also increase 4.9%.

The price changes will take effect from 31st December, 2012, Atlanta-based UPS said on Friday.

Shippers will also be facing higher charges for accessorial services, including an extra dollar for address corrections and missing account numbers, along with one or two dollar increases for daily pickup fees and for Delivery Intercept.

Delivery area surcharges for commercial addresses increase by 15c for air services, although for ground services remain the unchanged. Delivery area surcharges for residential addresses increase by 25c for air services, again remaining unchanged for ground services.

Residential surcharges for ground services increase 25c, while for air services they will increase by 20c.

The company’s US rival, FedEx Express, announced back in September that it will be increasing its US prices by a net average of 3.9% from 7th January, 2013. The FedEx price rise will include a 5.9% rate increase combined with a two percentage point drop in fuel surcharges.

FedEx Freight adopted a 6.9% rate increase as of July 2012.