UPS Announces Early 2017 Rate Increase

September 13, 2016
Author: Renee Bingling

Your United Parcel Service® delivery will soon cost a bit more. The company announced that customers will soon see a standard 4.9% increase on its daily rates for U.S. Ground Service and U.S. Air and International Services.  The 4.9% increase will also affect Air Freight rates within and between the U.S., Canada, and Puerto Rico.

UPS has noted that the “rate increases will support ongoing expansion and capabilities enhancements, while (it) strives to maintain the high service levels customers expect”.

Following UPS’ increase, it is also expected that FedEx will soon announce its new shipping rates this month, as historically the two delivery giants roll-out their rate increases in lockstep.

With an estimated 40% of holiday shoppers going online in 2015, it is clear that there is a demand for delivery service, which is dominated currently by UPS and FedEx.  The UPS increase will not affect customers until December 26, 2016, giving businesses and retail customers another reason to plan early for the holiday season. Businesses have to be mindful that the rate increase will affect holiday returns and late Christmas orders.  


For further details on the UPS rate increase, visit our shipping blog.