UPS to Raise Rates for 2003

United Parcel Service Inc. said that it was raising the rates for its package shipping services beginning Jan. 6, 2003.

UPS commercial ground service costs will be going up by 3.9%, the Atlanta-based company said in a statement, with the residential surcharge rising a nickel to $1.15.

Bloomberg said that the increase to deck for 2003 is higher than the 3.5% hike the company set in place last year for 2002.

Rates for UPS’ air cargo services – UPS Next Day Air and UPS Worldwide Express – will be going up 3.2% and 2.9% respectively, according to the company’s release.

Spokeswoman Christine McManus told Bloomberg that the increases in rates reflect the company's cost of doing business, but did not elaborate.

The company said that for the remainder of 2002, including the busy holiday shipping season, its fuel surcharge would remain at 1.25%.

Despite the hikes in its rates, UPS said it is confident that it will continue to be a strong value in the industry.

"In addition to competitive rates and high reliability, we provide many value-added services and technologies that help customers achieve cost-efficiencies," said John Beystehner, UPS senior vice president of worldwide sales and marketing.

UPS is ranked No. 1 on the 2002 Transport Topics 100 listing of the largest trucking companies in the United States and Canada.

(Click here for the full press release.)