UPS Announces Rate Hikes

United Parcel Service (UPS) announced rate hikes Thursday on ground and air shipments. The rates come into effect Feb. 5.

Rates for UPS ground shipments will jump 3.1% for all weights and zones. Air shipments for next-day, second-day and third-day categories will all rise by 3.7%. Rates on U.S.-origin shipments being exported to other countries will go up 2.9%.

The residential-delivery surcharge will increase from its current $1 per package to $1.05 per package. The temporary fuel surcharge of 1.25% will continue, the company said.

On Wednesday, UPS rival FedEx Corp. (FDX) announced an average 4.9% rate hike on U.S. air delivery shipments effective Feb. 1, and also boosted its export rate 2.9%.