UPS Announces New Rates for 2002
– UPS (NYSE:UPS) today announced that its 2002 rate increase will be in line with changes it has implemented during each of the past several years.
The rate change will take effect Jan. 7, 2002, which is one month earlier than in previous years. Customers also have been given a full 60-day notice of the change in response to research indicating they prefer a schedule more in line with their year-end budget planning.
On average, rates for UPS commercial ground services will increase 3.5 percent and the residential premium will increase from $1.05 to $1.10. Rates for overnight and two-day express services will increase approximately 4 percent, and rates for U.S. export services will increase 3.9 percent.
Rates for UPS Hundredweight, which provides customers an alternative to Less-Than-Truckload (LTL) carriers for shipments of multiple packages to the same address, will increase 5.9 percent. Still, UPS Hundredweight will continue to provide customers savings of approximately 50 percent compared to average LTL published prices.
The temporary fuel surcharge of 1.25 percent, which is the lowest overall surcharge in the industry, will remain in effect as a separate charge due to continued fuel price volatility.
Other changes include an additional charge for deliveries of premium express letters and packages to residential addresses, a price distinction that UPS has applied to residential ground deliveries for the past 10 years to offset the higher cost of providing service. As a result, the price for air express deliveries to residential addresses will be $1.10 higher than deliveries to commercial addresses. The Delivery Area Surcharge of $1.50, which is currently assessed for ground deliveries to residences located within certain remote ZIP Codes, also will now be applied to express deliveries to these addresses.
"We're confident our services continue to represent the best value in the industry, especially given the reach and reliability of our global integrated network and the industry-leading technology solutions available to both businesses and consumers who choose UPS," said John Beystehner, UPS senior vice president of marketing and worldwide sales.
UPS's integrated transportation and information network allows customers to tailor their shipping and technology needs to leverage a full portfolio of express, ground and international services – all through one company and a single point of contact for greater convenience and seamless service. Online services, Web or wireless tracking capabilities and a broad array of returns services are among the innovative technologies that make UPS shipping services even more valuable and functional for customers.
The new UPS rates will be available on UPS's Web site, www.ups.com, on Dec. 7, 2001. Online services such as UPS OnLine(R) WorldShip, MyUPS.com – UPS's Internet shipping service – and the Web-based Quick Cost Calculator will reflect the new rates when they become effective on Jan. 7, 2002.
UPS, founded in 1907, is the world's largest express carrier and largest package delivery company and a leading global provider of specialized transportation and logistics services, serving more than 200 countries and territories. In 2000, UPS generated revenues of $29.8 billion and delivered more than 3.5 billion packages and documents worldwide. Headquartered in Atlanta, the company resides on the Web at http://www.ups.com.
Except for historical information contained herein, the statements made in this release constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve certain risks and uncertainties, including statements regarding the intent, belief or current expectations of UPS and its management regarding the company's strategic directions, prospects and future results. Certain factors may cause actual results to differ materially from those contained in the forward-looking statements, including economic and other conditions in the markets in which we operate, governmental regulations, our competitive environment, strikes, work stoppages and slowdowns, increases in aviation and motor fuel prices, cyclical and seasonal fluctuations in our operating results, and other risks discussed in the company's Form 10-K and other filings with the Securities and Exchange Commission, which discussions are incorporated herein by reference.
United Parcel Service – UPS
