UPS announced shipping rate increases that will take effect Jan. 3, 2005.
Rates for UPS Ground, UPS Next Day Air, UPS 2nd Day Air, UPS 3 Day Select and U.S. international services will increase 2.9%.

UPS Hundredweight Service will increase by 5.9%. UPS describes its Hundredweight Service as an alternative to LTL, “with rates still half those of most major LTL carriers,” the UPS release said.
Most retail rates at nearly 3,600 locations of The UPS Store will not change and UPS will reduce the fuel surcharge currently applied to UPS Next Day Air, UPS 2nd Day Air and UPS 3 Day Select and international services by setting a maximum cap of 9.5%. This surcharge will continue to be calculated from an index based on the average price for a gallon of kerosene-type jet fuel.
A fuel surcharge of 2% on UPS Ground, UPS Ground Hundredweight and UPS Standard to Canada will fluctuate based on the U.S. Energy Department’s On-Highway Diesel price. The current fuel surcharge is described at UPS.com, and details regarding new calculations will be posted on the web site on Dec. 1.
Other changes in January extend UPS Ground service rates as an option for shipments bound for Alaska, Hawaii and Puerto Rico originating in the continental U.S.
In its release, UPS said recent improvements have reduced transit times by one day on UPS Ground service between 20 metropolitan areas, including Atlanta, Baltimore/Washington, D.C, Chicago, Dallas, Houston, Kansas City, Los Angeles, Philadelphia and Pittsburgh. Globally, UPS will begin six new weekly flights directly to China this year with an additional six to begin later in 2005.