On December 26, 2021, UPS’s general rate increase will take effect. The announcement was made last week following the company’s third quarter earnings call. According to the statement, the rate hike will help with the “ongoing expansion and capability enhancements as we strive to maintain the high service levels you expect from UPS.”
The general rate increase will include the following:
- Increase of an average of 5.9% for UPS Ground, UPS Air, and International Services
- Increase of an average of 5.2% for UPS Air Freight in the United States, Canada, and Puerto Rico
UPS CFO Brian Newman says “demand for our services remained high and the pricing environment in the industry was firm … We expect similar dynamics in the fourth quarter.” With the current “peak” demand for shipping services, UPS price increase could lead to increased rates for other shipping companies as well.
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