As expected, UPS announced on its website Friday that, effective January 2, 2012, the published rates for its services will be increasing.
UPS Ground services will increase a net 4.9% through a combination of a 5.9% increase in rates and a 1 percentage point reduction in the UPS Ground fuel surcharge, according to the site.
UPS Air and International services will also increase a net 4.9%, through a combination of a 6.9% increase in rates and a 2 percentage point reduction in the UPS Air and International services fuel charge.
UPS Next Day Air Freight and UPS 2nd Day Air Freight rates for shipments within and between U.S., Canada and Puerto Rico will increase 5.9%. UPS 3 Day Freight rates will remain unchanged.
On August 1, 2011, UPS Freight announced a general rate increase covering non-contractual LTL shipments in the U.S., Canada and Mexico.
As a shipper, it is important to understand the DNA of the carrier rate change. The rate advertised, as pointed out by UPS, is a net increase, so depending on your characteristics, its impact could have a much greater effect on your bottom line.
A closer examination of the UPS rate structure provides a more realistic view of how the shipper will ultimately be affected. The following breakdown of the rate increases shows a stark contrast to the advertised 4.9%.
UPS Ground services will increase a net 4.9% through a combination of a 5.9% increase in rates and a 1 percentage point reduction in the UPS Ground fuel surcharge, according to the site.
UPS Air and International services will also increase a net 4.9%, through a combination of a 6.9% increase in rates and a 2 percentage point reduction in the UPS Air and International services fuel charge.
UPS Next Day Air Freight and UPS 2nd Day Air Freight rates for shipments within and between U.S., Canada and Puerto Rico will increase 5.9%. UPS 3 Day Freight rates will remain unchanged.
On August 1, 2011, UPS Freight announced a general rate increase covering non-contractual LTL shipments in the U.S., Canada and Mexico.
As a shipper, it is important to understand the DNA of the carrier rate change. The rate advertised, as pointed out by UPS, is a net increase, so depending on your characteristics, its impact could have a much greater effect on your bottom line.
A closer examination of the UPS rate structure provides a more realistic view of how the shipper will ultimately be affected. The following breakdown of the rate increases shows a stark contrast to the advertised 4.9%.
Download the PDF to see the entire analysis!
View 2012 UPS Rate IncreaseTI.pdf
