Atlanta-based United Parcel Services (UPS) said it is increasing both package shipping rates and its fuel surcharge structure effective January 3, 2005.
The carrier said rates for UPS Ground, UPS Next Day Air, UPS 2nd Day Air, UPS 3 Day Select and U.S. international services will increase 2.9%. UPS Hundredweight Service – what it considers an “alternative” to LTL service – will increase by 5.9%.
Also beginning in January, UPS will reduce the fuel surcharge currently applied to UPS Next Day Air, UPS 2nd Day Air and UPS 3 Day Select and international services by setting a maximum cap of 9.5%. This surcharge will continue to be calculated from an index based on the average price for a gallon of kerosene-type jet fuel.
However, a fuel surcharge of 2% on UPS Ground, UPS Ground Hundredweight and UPS Standard To Canada will be applied that will fluctuate after January based on the Department of Energy’s on-highway diesel price.
Other pricing changes include an increase of $0.25 for the delivery area surcharge on both residential and commercial services to more remote ZIP codes. The residential surcharge will increase $0.10 for UPS Ground services and $0.35 for UPS Next Day Air, UPS 2nd Day Air and UPS 3 Day Select.