UPS Announces Rate Hikes

UPS mail box Photo by Mike Mozart. Click image to view source.[/caption]

UPS rolled recently rolled out rate changes that will go into effect in the coming weeks and months. Effective Dec. 26, or the day after its busy holiday season, the UPS U.S. Ground service daily rate as well as the daily rates for UPS U.S. Air and International services will increase by an average net of 4.9 percent.

In addition, UPS Freight announced that the same average net of 4.9 percent general rate increase will take effect on this Sept. 19.

In a press release announcing the increases, UPS said it is continuing to “make investments in the speed, scope and coverage of our transportation network. Rate increases will support ongoing expansion and capabilities enhancements, while UPS strives to maintain the high service levels customers expect.”

The 2017 “Selected Daily Rates Surcharge Changes”, on the UPS Website, states an additional handling surcharge will apply to any package with the longest side exceeding 48 inches, instead of 60 inches for all Air and International packages. This additional handling chargewill increase by $0.35. Effective January 8, 2017, the additional handling surcharge will also apply to UPS SurePost packages. UPS said “This change is being implemented due to the additional handling required for these types of packages in the UPS network,” but an industry stakeholder explained those additional handling pricing hikes by UPS  (and FedEx, too) by saying “they do it because they can.” (Jeff Berman, September 2, 2016, UPS announces rate increases, logisticsmanagement.com).

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