The Atlanta-based company, which has its main package sorting hub in Louisville, Ky., also said it would maintain its 2 percentage point fuel surcharge reduction on air and international shipments.
UPS, also known as United Parcel Service, said that starting next year there will be an average 4.9 percent increase for ground shipments and an average increase of 6.9 percent on all air express and U.S. origin international shipments.
The company said there will be a 2 percentage point reduction on the separate fuel surcharge for air and international shipments. The current surcharge for those shipments is 12.5 percent, spokesman Steve Holmes said. The reduction would mean a net increase on the base rate of 4.9 percent. The reduction does not apply to ground shipments, for which the current fuel surcharge is 4.5 percent, Holmes said.
For 2006, UPS raised the base rate for its ground shipments an average 3.9 percent and the base rate for its air and international shipments by an average 5.5 percent, Holmes said. The net increase last year on air and international shipments was 3.5 percent because of the fuel surcharge reduction.
The new rates for 2007 do not affect this year's holiday shipping season.
Earlier this month, Memphis, Tenn.-based FedEx Corp. also announced its rate increases for next year.
It said its express division will increase average shipping rates by 3.5 percent at the beginning of the year.
FedEx said the rate change for express domestic and export shipments would come from a 5.5 percent increase in standard list rates and a 2 percentage point reduction in fuel surcharges.
The parent company also said it expects to raise rates next year for FedEx Ground, its trucking division based in Pittsburgh.
(Copyright 2006 by The Associated Press. All Rights Reserved.)
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