UPS announces 4.9-percent tariff rate hike on 2013 ground services, 4.5 percent on air package, international

UPS Inc. said today it will increase its 2013 tariff rates by 4.9 percent on its core ground parcel services and by 4.5 percent on its air letter, air package, and all U.S.-origin international services, effective Dec. 31.

Additionally, UPS announced a 4.9-percent tariff rate increase on airfreight shipments moving within and between the United States, Canada, and Puerto Rico. Similarly it declared a 4.9-percent tariff rate increase on its three-day delivery services--much of which move on intermodal services--within and between the same points.

The increases affect customers who don't ship under contractual arrangements with UPS.

The rate increase for UPS' air letter, air package, and international services is based on a 6.5-percent average base rate increase, minus a 2-percentage-point reduction to the air and international fuel surcharge table, the Atlanta-based company said. The rate increase for UPS' ground services is based on a 5.9-percent average increase in the base rate, minus a 1-percentage-point reduction to the ground fuel surcharge table, UPS said.

Rival FedEx Corp. has already announced rate increases of 5.9 percent for its FedEx Express air and international services, offset by a 2-percentage-point reduction in fuel surcharges. Memphis, Tenn.-based FedEx has not yet announced 2013 increases for its FedEx Ground parcel services, though analysts expect the increase to match UPS' ground rate increase.

FedEx's announced rate increases take effect Jan. 6.