UPS shipping rates to jump

UPS is preparing to impose another shipping rate increase.

Starting Dec. 24, the fees for UPS ground, UPS air and international services, as well as UPS air freight rates within and between the United States, Canada and Puerto Rico, will rise by an average of 4.9%.

These increases will “support ongoing expansion and capabilities enhancements.” They will also support additional investments the company is making “in the speed, scope and coverage of our transportation network in order to support our customers’ growth and service needs,” according to UPS.

The move rivals a similar announcement from FedEx. In September, the carrier revealed it plans to impose new shipping fees starting on January 1, 2018. All subsidiaries, FedEx Express, FedEx Ground and FedEx Freight, will increase their shipping fees by an average of 4.9%. The company is also imparting additional surcharges across other services.

UPS’ rate increase comes on the heels of its plan to hike prices on holiday deliveries. In June, the carrier revealed that for the first time, it would add a surcharge for orders delivered to homes during peak holiday times.

The holiday price increases include a 27 cent surcharge per package on UPS' ground service from Nov. 19 to Dec. 2, and from Dec. 17 and Dec. 23. Residential packages, large packages and those exceeding system weight limits, would face surcharges of up to 97 cents for two-day air services to residential addresses from Dec. 17-23.

Both increases could boost the buy-online-pickup-in-stores (BOPIS) strategy being deployed by more store-based retailers.
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