UPS to increase rates Jan 6

United Parcel Service

on Nov. 8 gave parcel shippers two months notice for its annual rate hike, which is set for Jan. 6. While the 3.9% base rate hike for standard ground delivery is comparable to past year’s rate adjustments, the surcharge for residential deliveries will jump 4.5%, from $1.10 to $1.15. So in most cases, ground deliveries to residences will increase by more than 4%.

Unlike in past years when the Atlanta-based UPS would outline specific reasons for the rate increase, the carrier is vague about the basis for the 2003 annual rate hike. The increase, according to spokesperson Christine McManus is based on “hundreds of factors. There’s nothing unusual this year,” she says. “Our rates are based on costs, competitive positioning, and demand.”

Among other increases, UPS’s Next Day Air service will increase 3.2%, while Worldwide Express will go up 2.9% for U.S.-originating export shipments.

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