* UPS raises small package rates by net 4.9 pct
* 2012 net rate hike matches 2011 increase
* Raising some freight rates by 5.9 pct
By Lynn Adler
Nov 18 United Parcel Service , the
world's largest package delivery company, announced higher
rates for most shipping services for 2012.
UPS is among shipping companies that have been able to push
through higher rates to their customers, despite a tepid
economic recovery, because of ongoing demand for its services.
That demand is expected to escalate during the holidays
this year, particularly as on-line shopping increases.
Consumers increasingly order using the Internet in the final
few weeks before the holidays, and those goods are delivered
mainly by UPS and FedEx
Atlanta-based UPS on Friday said it planned a 4.9 percent
net increase on UPS Ground, UPS Air services and international
shipments originated in the United States.
That increase matches the rate hike for small packages in
2011, spokesman Norman Black said.
In its air freight segment, which handles packages weighing
150 pounds or more or does not fit inside a box, rates for UPS
Next Day Air Freight and UPS 2nd Day Air Freight for shipments
within and between the U.S., Canada and Puerto Rico will
increase 5.9 percent.
UPS 3 Day Freight rates will be unchanged, the company
The new rates take effect on Jan. 2, 2012.
"Our customers are willing to accept adjustments like this
because overall they still recognize the value UPS brings to
the table," Black said. "We're using technology and new
products and services that help them reduce their overall
transportation expense over and beyond whatever they may be
spending on a specific package."
UPS on Aug. 1 also raised rates by an average of 6.9
percent on some freight trucking rates.that
was the start of a wave of other trucking rate hikes.