*UPS Raises Rates 1 Day After FedEx Increase

Share this content:
Following the lead of rival FedEx Corp., Memphis, TN, United Parcel Service said yesterday it will increase its air shipment rates 3.7 percent, effective Feb. 5. International shipments will rise 2.9 percent.


Ground service -- the bulk of UPS' business -- will rise 3.1 percent for all weights and zones, and the fee for residential deliveries will increase from $1 to $1.05 on all packages.


UPS, Atlanta, also said it will keep the 1.25 percent fuel surcharge it began assessing in August, but hopes fuel prices will eventually stabilize at lower levels.


FedEx announced Wednesday it will increase U.S. air express rates 4.9 percent on Feb. 1. UPS said it would publish the new rates Jan. 4 on its Web site.


Earlier this year, UPS said domestic levels for package volume during the two-week period that ended Dec. 8 were flat compared with 1999 because of slowing customer shipments. This follows a slowing in domestic volume increases in October and November to 4 percent, compared with the 5.5 percent growth reported for the first nine months of the year.


UPS said it expected a slight slowdown in the rate of fourth-quarter growth because of one less shipping day this holiday season, a softening economy and comparisons with strong results posted a year ago.


The unusual slowing in holiday shipments has compounded the situation, UPS said, although its integrated network allows the company to adjust to changing economic conditions. The company now expects earnings-per-share growth of 7 percent to 10 percent for the fourth quarter.
close

Next Article in Direct Mail

Sign up to our newsletters

Company of the Week

Brightcove is the world's leading video platform. The most innovative and respected brands confidently rely on Brightcove to solve their most demanding communication challenges because of the unmatched performance and flexibility of our platform, our global scale and reliability, and our award-winning service. With thousands of customers and an industry-leading suite of cloud video products, Brightcove enables customers to drive compelling business results.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above