UPS to Increase Rates in 2003
Nov. 08, 2002
%mlink(STRY:; PHOTO:; AUDIO:%)
ATLANTA (AP) _ United Parcel Service Inc., the world's largest package hauler, Friday announced price increases in its shipping rates, effective Jan. 6.
The Atlanta-based company said it will raise the price for ground shipments to businesses by 3.9 percent.
The cost of Next Day Air service will go up 3.2 percent, while the price of UPS Worldwide Express deliveries will increase 2.9 percent.
The surcharge for residential deliveries will inch up five cents to $1.15.
UPS said its fuel surcharge, an index-based surcharge that is adjusted monthly, will remain at 1.25 percent for November and December.
Last month, UPS posted only a slight rise in third-quarter profit as the courier worked to regain business lost because of customers fears of a possible labor strike.
With its earnings forecast in July, the company acknowledged that it faced a battle to win back customers who steered shipments elsewhere during the company's contract talks with the Teamsters union.
In the first two weeks of July, before an agreement was reached, UPS lost about 475,000 strike-related packages a day to competitors.
Early Friday, shares of UPS traded at $62.77, up $1.16 or 2 percent, on the New York Stock Exchange.