UPS, FedEx Ready Rate Hikes

Nov 22, 2006 1:43 AM  By

‘Tis the season–not only for gift-giving but also for rate-raising by the parcel carriers.

On Nov. 17, Atlanta-based United Parcel Service announced that it would hike its ground and air shipping rates effective Jan. 1. Prices will increase an average 4.9% for ground shipments and 6.9% for air express and U.S.-origin international shipments. The parcel carrier will also charge an additional $0.10 for each residential delivery.

Last year UPS had increased its commercial ground services rates an average of 3.9% and its air and international service rates an average of 5.5%. UPS will post details of the rate increases on its Website ( on Dec. 1.

Earlier this month Memphis-based FedEx announced that it too would be raising rates on Jan. 1. The parcel shipper will increase the net average shipping rate for FedEx Express by 3.5%, which is composed of a 5.5% average increase in standard list rates offset by a 2% reduction in its fuel surcharge. It will also raise rates for FedEx Ground, though I has not yet announced by how much, and levy additional surcharges.

Among other changes, FedEx will add a dimensional weight system for oversize ground shipments, effective Feb. 5.