UPS announces rates for 2004
UPS has announced new rates for most U.S. services effective Jan. 5, 2004. UPS commercial ground services will increase 1.9% with U.S. air and UPS Worldwide Express services increasing an average of 2.9%. The premium for packages and letters delivered to residential addresses will rise from $1.15 to $1.40.
UPS also will introduce a $1.00 delivery surcharge to commercial shipments headed to more remote ZIP codes. These ZIP codes are the same as those covered by the current residential delivery area surcharge, which was first applied in 1999 and remains at $1.75. The majority of UPS’s accessorial charges stay the same.
These changes also apply to the UPS retail rates, including the more than 3,100 locations of The UPS Store.
In addition, UPS will discontinue the fuel surcharge on UPS Ground service, while a new index will be applied to UPS Next Day Air, UPS 2nd Day Air, UPS 3 Day Select and international services to reflect their higher fuel consumption.
The new UPS Fuel Surcharge Index will be based on the U.S. Energy Department’s Gulf Coast spot price for a gallon of kerosene-type jet fuel, consistent with industry standards. The index for shipments originating in Europe will be based on the Rotterdam ARA spot price of kerosene-type jet fuel.
Also beginning in January, all UPS services in the U.S. will expand size limits, increasing from 130 inches to 165 inches in length and girth combined for oversized packages. The UPS maximum weight limits remain the same. UPS introduced this service at The UPS Store locations earlier this year.
“In 2003, UPS has improved service, delivered technology tools and reduced transit times across the network,” said John Beystehner, UPS senior vice president of worldwide sales and marketing. “We’ve also worked hard to improve efficiencies and control our costs to ensure UPS continues to bring unique value to customers.”
The new 2004 rates and fuel surcharge information will be available on UPS.com beginning Dec. 5. MyUPS.com and any UPS Online® Tools integrated into customer Internet sites will automatically reflect new rate information in January.
