United Parcel Service Inc. (NYSE: UPS) plans to increase the 2012 rates by 4.9 percent for ground package shipping, air shipping and, U.S.-origin international shipments, the company announced Friday.
New pricing takes effect Jan. 2, 2012.
While the increases were not driven by any one facter, clearly fuel is always part of the mix, UPS spokesperson Norman Black told the Wall Street Journal. Black said the increases reflected a combination of cost, demand for services and investments in the company's network and new products.
Previously this year, UPS has offset climbing fuel costs with some increased rates, as has rival package shipper FedEx Corp. (NYSE: FDX).
The rate increase for UPS Ground shipments is based on a 5.9 percent increase in the base rate, less a 1 percentage point reduction to the index-based ground fuel surcharge. The rate increase for UPS Air and international services shipments is based on a 6.9 percent increase in the base rate, less a 2 percentage point reduction to the index-based air and international fuel surcharge.
Additionally, UPS Next Day Air Freight and UPS Second Day Air Freight rates for shipments within and between the U.S., Canada and Puerto Rico will increase 5.9 percent. UPS Three Day Freight rates will remain unchanged.
The company's shares closed at $69.14, up 21 cents, or 0.3 percent on Friday.