UPS Rates to Rise

published: cw 48, 2005 in Logistics & Shipping

UPS charges will be greater for most U.S. small package services, though there will be a reduction in air fuel surcharges. Rates will increase by 3.9% for commercial ground services and 5.5% for air and international shipments. The new rates will be posted on the company?s web site at www.ups.com on December 1 and be automatically integrated into customer systems when they take effect on January 2, 2006.

While UPS caps the current air fuel surcharge at 12.5%, it will reduce the index by 2% which should benefit shippers as fuel prices cool and the index, hopefully, falls below the current cap. The surcharge applies to UPS Next Day Air, 2nd Day Air, 3 Day Select and international services.

The UPS Ground surcharge remains unchanged. It is pegged to the U.S. Department of Energy?s On-Highway Diesel price index. There are service enhancements for premium UPS air services. Its Next Day Air Early A.M. offering will be extended to nearly 20,000 Zip Codes. Guarantees for 2nd Day Air A.M. will move up from noon to 10:30 am, and Saturday deliveries will be able to be shipped by 2nd Day Air on Thursdays.

Source: Logistics Today


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