UPS raises rates 4.9%

UPS raises rates 4.9%    Parcel carrier UPS announced Friday a 4.9 average rate increase for UPS Ground shipments, air express and U.S.-origin international shipments beginning on Jan. 4.
   The increases are in line with those taken by the Atlanta-based delivery company in recent years.
   Air express and U.S.-origin international shipments technically are to rise 6.9 percent, but UPS is also factoring in a 2 percent reduction in the fuel surcharge, for an average net increase of 4.9 percent.
   UPS said it is also making adjustments to its ground and air fuel surcharge tables to better align them and make fuel surcharges less volatile.
   Rival FedEx said it would also increase Express air delivery rates in 2010 by 6.9 percent minus a 2 percent reduction in fuel surcharge that will partially offset the price rise.
   The UPS rate increase comes at a time of significant decline in demand, but also follows the departure this year of DHL from the domestic ground delivery market.