UPS, one of the largest freight transportation and logistics carriers in the US, announced that it will raise its rates an average of 4.9% effective December 29, 2014.
The increases will affect UPS Ground, Air, International and UPS Freight carrier services for movements between the US, Canada and Puerto Rico.
The move comes on the heels of UPS’s announcement last June that it is planning to apply dimensional weight pricing for all of its UPS Ground services and UPS Standard to Canada packages. That move also takes effect December 29. The carrier already uses dimensional pricing — or “dim pricing” — on its domestic and international air service, UPS Standard to Mexico ground service, UPS Ground Packages, and UPS Standard to Canada packages that are larger then three cubic feet.
Jerry Hempstead, an Orlando-based consultant of the freight industry, said UPS was expected to announce a price increase, just not this early.
“In the past they announced in November (November 22, 2013, for 2014; November 19 2012, for 2013; and November 8, 2011, for 2012,” Hempstead told Logistics Management. “It appears UPS is taking lessons from their competitor, FedEx, whom announced its 2015 rates prior to their investors quarterly call which leads to questions on the call and to a degree helps to pump the stock. UPS has their quarterly investors call this Friday.A little bit of a turn in the announcement is that traditionally FedEx allowed UPS to set the prices for ground parcel shipping and just matched their tariff after UPS went public.”