By Jeff Berman / www.logisticsmgmt.com / October 16th, 2015
UPS announced yesterday that it has rolled out its 2016 rate increases.
Big Brown said that effective December 28, UPS Ground rates and accessorial charges will head up by an average of 4.9 percent, and UPS Air and International services and accessorials, including UPSAir Freight rates within and between the United States and Canada will increase by an average net of 5.2 percent. And rates for UPS Freight, the company’s less-than-truckload (LTL) segment, will increase 4.9 percent and take effect on October 26.
UPS also said that surcharges for Over Maximum packages and tables for Ground Air and International fuel surcharges will increase on November 2, and on January 4, 2016, it said there will be a charge for the company’s Third-Party Billing Service. For the Third-Party Billing Service, UPS bills shipping charges to a party other than the shipper or receiver, with the third party required to have a valid UPS account number and must have agreed to accept the charges.
Company officials said that rate and surcharge tables are geared to address the impact of increased costs and changing demand for select UPS products and other market factors.
This announcement follows a similar one by UPS’s biggest competitor, FedEx, which the Memphis-based company announced in September.
Rate increases will take effect for FedEx Express U.S. domestic, U.S. export, and U.S. import services, effective January 4, 2016. FedEx Express will increase shipping rates by an average of 4.9 percent for U.S. domestic, U.S. export and U.S. import services, and FedEx Ground and FedEx Home Delivery will increase shipping rates by an average of 4.9 percent. FedEx SmartPost rates will also change. And FedEx Freight will increase shipping rates by an average of 4.9 percent.
FedEx will also be updating certain fuel surcharge tables at FedEx Express and FedEx Ground, effective November 2. These changes are being made due to what FedEx described as changing industry dynamics, including, increases in average package size and weight, and increased residential deliveries. The company also noted that it is upping surcharges for shipments that exceed published maximum dimensions, or unauthorized packages, in its FedEx Ground network. It explained that unauthorized packages that exceed length or weight limitations of FedEx Ground “are handled at the option of FedEx Ground.
All details of the increases can be found at http://www.rates.ups.com/surcharges.html.
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