United Parcel Service (UPS) plans to raise its rates next year 4.9 percent for ground package shipping, air shipping and, for packages originating in the US, international shipping.

    The new net rates reflect higher base rates but lower fuel surcharges. The rate increase for ground shipments is based on a 5.9 percent increase in the base rate minus a one percentage point reduction to fuel surcharge. The rate increase for air and international shipments is based on a 6.9 percent increase in the base rate minus a two-point reduction in fuel surcharge.

    The company will also raise other freight rates, saying its next-day and second-day air freight rates for shipments within and between the US, Canada and Puerto Rico would rise 5.9 percent. Three-day freight rates will stay the same.

    UPS spokesman Norman Black said the increases weren't driven by any one factor, "though clearly fuel is always part of the mix". He 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 had offset climbing fuel costs with some increased rates, as had rival package shipper FedEx Corp.
In recent results generally, UPS's international growth has kept overall volume rising as US volume stagnates. UPS has been increasingly wary of how business in the US will hold up as the economic outlook grows cloudier.

    However, the company's 5.1 percent profit increase in the most recent quarter was driven by its supply chain/freight segment, as the international package segment had lower operating profit because of a deceleration in package volume on the Asia-to-US trade lane.

(source:http://www.cargonewsasia.com/category.aspx?id=7)