Subscribe to our free, weekly email newsletter!


UPS announces 2013 rate increases

By Jeff Berman, Group News Editor
November 19, 2012

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 headshot
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. .(JavaScript must be enabled to view this email address).


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!

Recent Entries

Panjiva, an online search engine with detailed information on global suppliers and manufacturers, recently said it is opening up the “vault,” so to speak. The vault in this case is making its copious amount of trade data accessible through an Application Programming Interface (API), which enables customers to extract Panjiva’s trade data into their own database.

Freight transportation and logistics services provider Averitt Express recently announced it has rolled out improved transit times for less-than-truckload (LTL) service from the Midwest to Toronto and other cities.

Data issued by the National Retail Federation lowered its 2014 retail sales forecast, due to a slow first six months of the year (and largely negatively influenced by the terrible winter weather), but noted that retail sales are expected to be strong over the next five months to finish the year.

Anne Ferro, a ferocious advocate for greater truck safety and a constant thorn to truck drivers and some unsafe trucking fleets, says she is leaving as administrator of the Federal Motor Carrier Safety Administration. No successor has been immediately named.

Data issued by the National Retail Federation lowered its 2014 retail sales forecast, due to a slow first six months of the year (and largely negatively influenced by the terrible winter weather), but noted that retail sales are expected to be strong over the next five months to finish the year.

Article Topics

News · UPS · FedEx · Rates · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA