UPS announces average rate increases of 4.9% for 2010
UPS announced November 20 that its 2010 shipping rates will increase by an average of 4.9% for UPS Ground packages, and will see an average net increase of 4.9% for air express and US origin international shipments.
The rates will go into effect January 4, 2010. A full list of rate changes is available on UPS' 2010 rates microsite.
Scott Davis, chairman and CEO of UPS, said earlier this month that the shipper would raise rates next year but did not specify by how much. He also told Reuters that UPS also expects to see growth in its volumes next year as the global economy improves.
Last month, UPS reported revenues of $11.2 billion for this year's third quarter, a year-over-year decline of 14.9% from last year's $13.1 billion. The shipper also saw its average volume-per-day drop 3.9% from 14.9 million packages to 14.3 million. The company's Q3 operating profit dropped to $929 million from $1.63 billion last year, a decrease of 43%. Those numbers beat analysts' expectations, according to reports.
Rival FedEx said last month that it plans to raise shipping rates 5.9% in January.
The US Postal Service, meanwhile, announced last month that it will not raise rates for 2010 on its “market dominant” products, a category that includes services used largely by direct mailers and publishers. However, it also revealed a mix of rate hikes and cuts for next year for other services.