Following in the footsteps of rival FedEx, UPS Inc. announced Oct. 21 it will increase its shipping rates by an average of 6.9%. The increase matches the rate hike announced by FedEx last month.
UPS’ increase takes effect Dec. 27, a week before the FedEx increase kicks in. The increase applies to UPS’ U.S. air, ground and international delivery services, according to the UPS website.
The general rate increases (GRIs) are the highest in the history of either company. FedEx and UPS typically raise their GRIs between 4.9% and 5.9%, though analysts expected GRIs of at least 6% from both companies in 2023 due to inflation.
In addition, UPS will levy a 6.2% increase on heavier weighted air shipments within and between the U.S., Canada and Puerto Rico.
Other 2023 changes include UPS raising its late payment fee from 6% to 8%. It will also remove the word “peak” from its reference to delivery surcharges, which will be referred to as “demand surcharges” moving forward.
UPS is scheduled to report its Q3 2022 results on Oct. 25.