UPS Announces Rate Increases for 2011

UPS announced rate increases for 2011, which equate to about a 7.5% hike for most shippers, according to Rob Martinez, president/CEO of Transult.
Martinez says the UPS rate hikes, which take effect Jan. 3, 2011, are “well above the 4.9% average increase the company is advertising.”

The average ground rate increase for packages weighing up to 10 pounds is 7.44%. UPS also unveiled a new minimum charge of $5.17 (a 6.8% increase from the previous minimum); and a new ground residential charge of $2.45, up 11.3%.
Is there anything shippers can do?

“Not really,” Martinez says,” as there are few alternatives. Most shippers will have to pass added costs along to the consumer, he notes.

As reported earlier, UPS is following the lead of FedEx with a new factor in determining dimensional weight to calculate delivery charges on ground shipments for most parcel shippers.

As of Jan. 3, the dimensional weight factor for domestic and ground services will change from 194 to 166, and for international shipments the dim-weight factor will change from 166 to 139.

The complete list of rate increases is available at:
pressroom.ups.com

Partner Content

The Gift of Wow: Preparing your store for the holiday season - Netsuite
Being prepared for the holiday rush used to mean stocking shelves and making sure your associates were ready for the long hours. But the digital revolution has changed everything, most importantly, customer expectations. Retailers with a physical store presence should be asking themselves—what am I doing to wow the customer?
3 Critical Components to Achieving the Perfect Order - NetSuite
Explore the 3 critical components to delivering the perfect order.
Streamlining Unified Commerce Complexity - NetSuite
Explore how consolidating multiple systems through a cloud-based commerce platform provides a seamless experience for both you, and your customer.
Strategies for Maximizing Mobile Point-of-Sale Technology - NetSuite
Learn the top five innovative ways to utilize your mobile POS technology to drive customer engagement, increase sales and elevate your brand.