UPS and FedEx Raise Shipping Rates Amid Higher Labor and Fuel Costs

As of February 1, United Parcel Service (UPS) will increase its shipping rates by 3.9% for air service and up to 4.3% for ground deliveries. The rate hike is attributed to higher labor and fuel costs. This move follows Federal Express's announcement of a 2% surcharge to cover increased fuel costs, effective February 3. Other shipping companies, including Airborne Express and DHL Worldwide Express, are considering similar rate hikes. The increases will affect various types of shipments, including overnight, second-day, and three-day domestic air service, as well as ground shipments. Residential customers can expect higher rates due to the added costs of delivering smaller, single-package deliveries.

Key Takeaways:

• UPS will raise its shipping rates by 3.9% for air service and up to 4.3% for ground deliveries, effective February 1.
• The rate hike is attributed to higher labor and fuel costs, with residential customers paying more due to smaller, single-package deliveries.
• Federal Express will add a 2% surcharge to cover increased fuel costs, effective February 3.
• Airborne Express and DHL Worldwide Express are considering similar rate hikes.
• The rate increases will affect various types of shipments, including overnight, second-day, and three-day domestic air service, as well as ground shipments.

Statistics:

• 3.9% increase in shipping rates for air service.
• Up to 4.3% increase in shipping rates for ground deliveries.
• 2% surcharge on shipping rates for Federal Express, effective February 3.
• 10% increase in cost to send a 4-pound package overnight by UPS from Atlanta to Washington, from $22 to $22.75.
• 2.2% increase in cost to send the same package by FedEx, from $27.25 to about $27.80.

Sources:

• Associated Press
• Bloomberg Business News