UPS has followed FedEx by announcing a significant rise in its US trucking rates against thebackground of weaker demand for ground transportation due to the slowing US economy and the
continued rise in fuel costs.UPS Freight, described as the nation’s fourth-largest less-than-truckload (LTL) carrier, willimplement a general rate increase averaging 5.4% for non-contractual shipments in the United Statesand Canada. The increase goes into effect on Feb. 4, 2008, and applies to minimum charge, LTL andtruckload (TL) rates.
UPS Freight president Jack Holmes, justifying the higher prices, commented: “We arecontinuing to improve service to our customers and to provide the latest technology. On January 1,UPS began offering on-time guarantees at no additional charge to customers on the current base UPSFreight tariff for shipments moving within the continental United States.” Also beginning thismonth, customers can process both package and LTL shipments in the UPS WorldShip® system.
FedEx’s two trucking companies, FedEx Freight and FedEx National LTL, both put up theirgeneral rates by 5.48% with effect from January 14. Senior managers of YRC Worldwide, the largestUS trucking group, said on January 2 that weak volumes and intense price competition were hittingthe trucking market.
