UPS to raise 2010 shipping rates
UPS will announce increases in its shipping rates later this month.
Norman Black, director of global media services at UPS, said via e-mail to DMNews that the shipping company does “foresee some general increases,” and “adjustments to both air and ground rates,” but it was not prepared to disclose details.
Scott Davis, chairman and CEO of UPS, told Reuters this week that the company will raise shipping rates for next year, and will specify the size of the rate hike later this month. He also told the wire service that UPS 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 revealed a mix of rate hikes and cuts for next year for other services.