UPS will increase rates for its ground, air and international shipping services by an average of 5.9% on Dec. 23, according to the carrier's website.
"This helps to support ongoing expansion and capability enhancements as we strive to maintain the high service levels you expect from UPS," the company said. "More detailed rate previews will be available at a later date."
The planned increase matches rival FedEx's incoming 5.9% rate hike, but it will arrive two weeks earlier and at the tail end of the holiday shipping rush. Last year, UPS' rate increase took effect on Dec. 26.
"This is an early effective date this year and places UPS in prime position to capitalize on a sliver of the 2024 Peak Season," said Jack McCrum, director of optimization and analytics at Reveel, in a LinkedIn post.
The actual impact for each UPS customer will vary depending on package weight, delivery distance, service used and other characteristics. Continued discounting activity from both UPS and FedEx amid a tepid demand environment could soften the impact for some shippers.
On Oct. 21, UPS will change the list of ZIP codes to which additional surcharges apply, among other adjustments. The company didn't specify which areas would be impacted, but UPS made a similar move earlier this year when it added surcharges for ZIP codes in several major cities.
More UPS pricing changes will come on Jan. 27, 2025. On that date, the carrier will tweak its surcharge calculations for large packages based either on length, weight or cubic volume of shipments. Also, additional handling charges will begin considering cubic volume rather than "length plus girth," according to UPS.
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