Charges for UPS’ Floor, Air and Worldwide companies will enhance by a median of 6.9% efficient Dec. 27, in accordance with the corporate’s web site.
UPS additionally introduced increased accessorial expenses efficient on the identical date, together with for residential deliveries, packages requiring further dealing with and deliveries to distant areas.
“This helps to assist ongoing enlargement and functionality enhancements as we attempt to take care of the excessive service ranges you anticipate from UPS,” the corporate mentioned of the speed hike on its web site.
The influence of the adjustments on shippers will fluctuate relying on their UPS settlement phrases and cargo traits.
UPS rival FedEx introduced a 6.9% common fee enhance of its personal in September. The 2 logistics giants sometimes mirror one another’s fee and surcharge hikes — final January they each introduced 5.9% fee will increase.
The 2 firms are rising charges regardless of each experiencing cooling development in bundle quantity in latest quarters, down from the highs seen in 2020 and 2021. FedEx EVP and Chief Buyer Officer Brie Carere mentioned in an earnings name the corporate believed the speed hike was applicable because of inflationary pressures.