UPS announces 2013 rate increases

According to company officials, non-contractual 2013 rates will be comprised of a net increase of 4.5 percent for UPS Air and International Services and UPS ground packages are going up 4.9 percent.

By ·

On Friday, UPS announced its new published non-contractual rates for 2013, which will take effect on December 31.

According to company officials, non-contractual 2013 rates will be comprised of a net increase of 4.5 percent for UPS Air and International Services and UPS ground packages are going up 4.9 percent.

UPS said that its increase for UPS Air and International Services is based on a 6.5 percent average increase in the base rate, minus a two percentage point reduction to the Air and International fuel surcharge table. This is down from a 6.9 percent base rate increase announced for 2012 a year ago at this time.

And the rate increase for UPS Ground services, said UPS, is based on a 5.9 percent average base rate increase, matching 2012, minus one percentage point reduction to the Ground fuel surcharge table.

UPS Next Day Air Freight and UPS 2nd Day Air Freight and UPS 3 Day Freight rates for
shipments within and between the U.S., Canada and Puerto Rico will increase by 4.9 percent, down one full percentage point from 2012’s announced rates.

In July, UPS Freight, the less-than-truckload subsidiary of UPS, announced a general rate increase (GRI) of 5.9 percent, effective July 16. UPS Freight officials said this GRI applies to minimum charge, LTL rates, and accessorial charges.

Robert W. Baird & Co. analyst Ben Hartford wrote in a research note that even though list price increases for UPS Air and U.S. origin international services are lower than 2012 increases and UPS Next Day and his firm recognizes that “a competitive market ultimately sets the rates and do not overemphasize the change in list price announcements in 2013 versus 2012 growth rates.”

Jerry Hempstead, president of Hemsptead Consulting, told LM that effective in 2013, UPS shippers will have relief from the company’s dimensional pricing rule, which will expire next year. Dimensional pricing is based on the greater of the actual weight or dimensional weight of each shipment in the package and is a major driver of revenue gains.

Hempstead added that most accessorial charges for UPS are increasing at a rate greater that the announced General Rate Increase.


In September, FedEx, UPS’s biggest competitor, rolled out its 2013 rate increases.
FedEx Express package and freight rates will head up 5.9 percent for for U.S., U.S. export and U.S. import services and will be partially offset by adjusting the fuel price at which the fuel surcharge begins, reducing the fuel surcharge by 2 percentage points.
2nd Day Air Freight rates are lower, too.


About the Author

Jeff Berman, Group News Editor
Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. Contact Jeff Berman

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Article Topics

FedEx · Rates · UPS · All Topics
Latest Whitepaper
New Supply Chain Technology Best Practices
New breakthrough developments, such as drones and driverless vehicles, seem to be everywhere.
Download Today!
From the October 2017 Logistics Management Magazine Issue
A leading distributor of professional salon products in the U.S. forms unique partnerships with its key LTLs to lower transport costs, reduce its carbon footprint and improve service to its 565 store locations.
Q4 2017 Rail/Intermodal Roundtable: Improvements apparent; work remains
LM Viewpoint: Collaboration, Now more than ever
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
The State of the Rail/Intermodal Markets
In this webinar our panel will discuss the new service challenges facing rail/intermodal providers and offer practical advice for how shippers can keep efficiency high and costs down.
Register Today!
EDITORS' PICKS
SalonCentric: One Beautiful Network
A leading distributor of professional salon products in the U.S. forms unique partnerships with its...
2017 Alliance Awards: Recognizing outstanding supply chain partnerships
In an era where effective supply chain collaboration is both highly valued and elusive, Logistics...

26th Annual Study of Logistics and Transportation Trends: Transportation at Digital Speed
While a majority of companies strongly agree that transportation is a strategically important...
34th Annual Quest for Quality Awards: Winners Revealed
Which carriers, third-party logistics providers, and North American ports have crossed the service...