US-based customers will have to pay more for shipping express goods and parcels next year afterUPS followed FedEx with a rates hike while prices in other markets around the world also look set
to go up.UPS announced on Friday that it will raise net prices in the USA by between 4.5% and 4.9% witheffect from December 31, 2012. There will be an average net increase of 4.5% on all UPS Air (USdomestic) and US-origin international services, based on a 6.5% average increase in the base rate,less a two percentage point reduction to the Air and International fuel surcharge table.
UPS Ground services in the US will go up by 4.9%, based on a 5.9 percent average increase in thebase rate, less a one percentage point reduction to the Ground fuel surcharge table. Additionally,UPS Next Day Air Freight, UPS 2nd Day Air Freight and UPS 3 Day Freight rates for shipments withinand between the U.S., Canada and Puerto Rico will increase by 4.9%.
Rival FedEx already announced in September that FedEx Express shipping rates will go by a netaverage of 3.9% for US domestic, US export and US import services effective January 7, 2013. Thefull average rate increase of 5.9% will be partially offset by adjusting the fuel price thresholdat which the fuel surcharge begins, reducing the fuel surcharge by two percentage points.
FedEx Ground, the parcel delivery unit that competes with UPS Ground services, has not yetannounced its price adjustment for next year.
Outside the US, shippers in other parts of the world can also expect to be paying more nextyear. International market leader DHL Express has announced a global average price hike for 5% for2013, with its rates in most of Europe, Asia Pacific, the Middle East and Africa, Latin America andthe Caribbean going up by 4.9% from January. DHL, which justified the increase as compensating forrising costs and inflation, has not yet announced its US rate changes, but these have tended tofollow the two market leaders in recent years.
In Europe’s largest market, Germany, DPD, the domestic B2B parcels market leader, will putprices for business customers up by 6% on average next year to offset rising costs and to reverseyears of falling prices in the market. Rival GLS plans an increase of up to 8%, according toCEP-Research information.
