UPS will increase prices for US customers by 4.9% on average from January 2010, thus outpacing the3.9% rate increase announced by FedEx.
UPS released new list rates for 2010 on Friday, including an average increase of 4.9% for UPSGround packages and an average net increase of 4.9% on all air express and US origin internationalshipments. The rate increase for air express and international shipments is based on a 6.9%increase in the base rate, less a 2% reduction in the air and international fuel surcharge index.
Updated rate and service information has been posted on ups.com/rates and customers candownload the 2010 Rate and Service Guide from December 18 onwards. The new rates take effect onJanuary 4, 2010.
UPS will also adjust its fuel surcharge tables for air express and ground services fromJanuary 4, 2010. The changes will better align Air and Ground Fuel Surcharges and willsubstantially reduce the volatility of air surcharges when fuel prices fluctuate. An explanation ofthe fuel surcharge calculation methodology along with the new rate tables will be available onups.com/rates.
In mid-September, FedEx Express said it will increase shipping rates by an average of 5.9%for US domestic and export services, effective January 4, 2010. The increase will be partiallyoffset by adjusting the fuel price at which the fuel surcharge begins, reducing the fuel surchargeby two percentage points and resulting in a net price increase of 3.9%. FedEx Ground rates for 2010have not yet been announced but will also go up.
