• Nearly 8% increase in 1-5 lb. ground rates
• Some accessorial increases hit 10%
• Several international rates approach 15%
• New international surcharges announced for 2012

UPS has announced their service rate increases effective Monday, January 2nd, 2012. UPS has announced that their ground rates will take a general rate increase of 4.9% through a combination of a 5.9% increase in rates and a 1% reduction in the UPS Ground services fuel surcharge index. This is the same average increase as last year; however, there are some details that will prove otherwise. As always, the average increase for base rates does not apply to every cell. For example, the ground zone 2, 1 lb. minimum has increased 6.2% and many lightweight ground cells are taking increases approaching 9% before the fuel adjustments. Additionally, not one package over 50 lbs. is increasing above 5%, which is driving the overall average increase down. The Ground Residential Surcharge is increasing 4.1% as well.

UPS has also announced that their rate increase for air and international services is 6.9%, offset somewhat with the now standard two percentage point decrease in the fuel surcharge index. This is the same announced increase as the past two years. As in past years, the accessorial rate increases are somewhat higher than the base rate increases, with some accessorials seeing 10% jumps. The base rates may average the announced increases; however, the following synopsis will highlight some particularly hard hit areas. Higher zone express shippers could experience increases in the 9.0% range before the fuel adjustment, while certain heavier weight international lanes have increases approaching 15%. Surcharges for residential delivery are up 9%, while the delivery area surcharge is up 8.1% for commercial and 9.1% for residential, and in extended areas 8.3%. The following analysis compares the UPS Daily rates from 2011 vs. 2012, not the new UPS Standard rates that UPS uses for conversion accounts that match the FedEx Express rates.

It is important to realize that these announced rate increases are only averages and the impact to your company could vary greatly. To determine the real impact of this rate increase to your specific business and shipments contact AFMS for a detailed rate impact analysis at 800-246-3521 or visit us at www.afms.com.  
Download the PDF to see the entire analysis, including charts.

View UPS 2012 Price Increase Analysis by AFMS.pdf