UPS has announced increases of around 5% in US domestic and international rates for 2016, justified by service improvements and investments, following similar moves by FedEx for the US market and DHL Express for the rest of the world.
The Atlanta-based company said that as of December 28, 2015, UPS Ground rates and accessorial charges will increase by an average net 4.9%. UPS Air and International services and accessorials, including UPS Air Freight rates within and between the U.S., Canada and Puerto Rico, will increase an average net 5.2%. UPS Freight® rates will increase an average net of 4.9%, effective October 26, 2015.
In addition, from November 2, 2015, the surcharge will increase for Over Maximum Packages and the tables for Ground, Air and International fuel surcharges will be updated. Effective January 4, 2016, there will be a charge for UPS’s Third-Party Billing Service.
“The rate and surcharge changes are to address the impact of increased costs, changing demand for select UPS products and other market factors,” UPS stated.
Customers were informed that the increase “supports ongoing expansion and capabilities enhancements, as we strive to maintain the high service levels you expect from UPS”. These improvements include expansion of the UPS Next Air Early service to more US ZIP codes, expansion of the Worldwide Express service, investments in the B2C network of Access Points in the USA as well as the acquisition of Coyote Logistics, the company pointed out.
FedEx announced in mid-September that it would increase US domestic and international express, ground and freight rates next January by an average of 4.9%. The Memphis-based company also said it would raise surcharges for oversized ground packages and adjusting fuel surcharge tables as of November 2, 2015.
DHL Express said on September 25 that it would increase prices for time-definite international shipments by about 4-5% around the world next January. This includes an average increase of 3.9% in Europe and 5% in Asia Pacific. But no increase for the US market has yet been announced.
