UPS Is Increasing Its Shipping Rates

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Every year, people expect UPS and other shipping companies to raise their rates to cover rising fuel costs and new services. UPS didn’t dissapoint this year. They announced that they’re increasing shipping rates for services between the U.S., Canada, and Puerto Rico for 2015. The rate increase will take effect on December 29, 2014 and be effective for 2015. The good news is you won’t have to worry about the increased shipping rates until after Christmas. A new UPS service, called Access Point, is also being introduced to help people have more shipping location options.UPS reports that shipping rates will increase by an average of 4.9 percent for both air and ground freight. Dimensional weight pricing will also take effect at this time. Back in June, they announced the dimensional weight pricing changes. This is something that has previously only applied to air international freight that is three cubic feet or larger.

Not surprisingly, UPS rival FedEx, is also increasing their shipping rates. In September, they announced an average rate increase of 4.9 percent, which takes effect on January 5, 2015. This rate increase applies to domestic, export, and import services to the U.S. Just like USP, FedEx also announced the addition of dimensional weight pricing. Dimensional weight pricing takes into account both the weight and size of items being shipped, instead of just the weight of a package.

In addition to the rate increases at UPS, they also announced that they’re testing UPS Access Point. It’s a service that increases the places where people can drop off packages to be shipped, such as at local businesses. It is also supposed to reduce the number of failed delivery attempts. UPS Access Point is expected to cut down on UPS labor costs and speed up overall service to customers.

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