UPS Announces 2010 Shipping Rates
UPS, an ASI affiliate, has announced it will raise its air and ground freight rates by an average of 4.9% in 2010. The company also plans to adjust its fuel surcharge tables, pledging to avoid the dramatic spikes in air freight costs that have reached 35% this year. The 2010 rate changes will go into effect on January 4.
For 2009, UPS hiked rates 5.9%, the largest jump in eight years. Slowed by the recession, UPS's domestic business has dropped off considerably, while the company has faced higher costs for labor, health care and pensions. In October, UPS reported its third quarter profits fell 43% to $549 million as revenue decreased 15% to $11.2 billion. "I'm encouraged by the signs of economic recovery that are becoming apparent, although we still have a long way to go," said Scott Davis, UPS chairman and CEO. "We are managing operations well, while controlling costs and maintaining excellent service."
While UPS intends to increase rates, its chief rival, FedEx, is taking similar steps. As part of its annual hike, FedEx will increase its air shipping rates by 3.9% in 2010. FedEx has not announced its rates for ground shipments or SmartPost packages.


