UPS has announced that its 2002 rate increase will be in line with changes it has implemented during each of the past several years. The increases, which will take effect January 7, will range from 3.5 to 5.9%, and the temporary fuel surcharge of 1.25% will remain in effect as a separate charge due to continued fuel price volatility, the company said.
"We're confident our services continue to represent the best value in the industry, especially given the reach and reliability of our global integrated network and the industry-leading technology solutions available to both businesses and consumers who choose us," said John Beystehner, UPS senior vp of marketing and worldwide sales.
On average, rates for commercial ground services will increase 3.5 %; for overnight and two-day express services, 4%; and for overseas services 3.9%.
Rates for UPS Hundredweight, which provides customers an alternative to LTL carriers for shipments of multiple packages to the same address, will increase 5.9%. Still, the company says UPS Hundredweight will continue to provide customers savings of approximately 50% compared to average LTL published prices.
Other changes include an additional charge for deliveries of express letters and packages to residential addresses, a price distinction that UPS has applied to residential ground deliveries for the past 10 years to offset the higher cost of providing service.
The surcharge for packages delivered to residential addresses will be $1.10, up from $1.05. In addition, air express packages for residential addresses will also be subject to the premium charge.
The delivery area surcharge of $1.50, which is currently assessed for ground deliveries to residences located within certain remote ZIP Codes, also will now be applied to express deliveries.