The United Parcel Service (UPS) plans to raise shipping rates but will wait until after the holiday shopping season to do so, according to Retail Dive.
The 4.9 percent rate hike will take effect on Dec. 26 on ground and shipping services, while the freight division will raise its shipping rates on Sept. 19.
“UPS continues to make investments in the speed, scope and coverage of our transportation network. Rate increases will support ongoing expansion and capabilities enhancements, while UPS strives to maintain the high service levels customers expect,” UPS said in a statement announcing the rate hike.
UPS’ main rival, FedEx, is also expected to announce increased shipping rates of about 5 percent this month.
Over the past 10 years, UPS and FedEx have increased the price of shipping 79.2 percent, according to information provided by Small Business Trends. Air shipping prices have gone up 95.5 percent over the past 10 years as well.
UPS ships packages as soon as the next day to 117 countries and offers delivery service to 12,680 zip codes in the U.S., which translates to 94 percent of zip codes and 98 percent of businesses in the nation.
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