In advance of the 2014 General Price Increase, UPS has announced a 4.9% average increase for US Air, International and Ground services, effective December 30, 2013.  UPS Air Freight rates (UPS Next Day Air Freight, UPS 2nd Day Air Freight and UPS 3 Day Freight) for shipments within and between the US, Canada and Puerto Rico will also see an increase of 4.9% (average).  This announcement comes one month after UPS announced 3Q profits have more than doubled (compared to one year ago), citing an increase in deliveries.

Notable surcharge increases include the following:

• Declared Value: Increase of $0.05 (5.9%) to $0.90 per $100 in value, minimum charge increase of $0.15 (5.9%) to $2.70


• Delivery Area Surcharge, Air Commercial (including Extended): Increase of $0.10 (4.7%) from $2.15 to $2.25


• Delivery Area Surcharge, Air Residential: Increase of $0.15 (4.6%) from $3.25 to $3.40


• Delivery Area Surcharge, Air Residential Extended: Increase of $0.15 (4.3%) from $3.50 to $3.65


• Delivery Area Surcharge, Ground Commercial (including Extended): Increase of $0.07 (3.5%) from $2.00 to $2.07


• Delivery Area Surcharge, Ground Residential: Increase of $0.10 (3.6%) from $2.75 to $2.85


• Delivery Area Surcharge, Ground Residential Extended: Increase of $0.12 (3.4%) from $3.50 to $3.62


• Residential Delivery, Air: Increase of $0.15 (4.7%) from $3.20 to $3.35


• Residential Delivery, Ground: Increase of $0.10 (3.6%) from $2.80 to $2.90

So, how does this affect you?  The 4.9% increase is only an average.  The impact to you will vary according to service level usage, zone density, package characteristics and distribution model.  If you would like to discuss strategies to mitigate these rate increases, specific to your organization, please contact Source Consulting.

More to come in the near future as UPS will making their 2014 Rate and Service guide available to download on December 30, 2013.