“Effective December 31, 2012, UPS will issue an increase of 4.5% on average on all UPS Air and UPS Ground services. The rate increase for Air is based on a 6.5% average increase in the base rate, minus a 2% point reduction to the air fuel surcharge table. The rate increase for UPS Ground is based on a 5.9% average increase in the base rate, minus a 1% point reduction to the Ground fuel surcharge table.”
It has been a tradition of UPS to announce the increase in terms of an average. Shippers must realize that their true increase will vary based on service. This White Paper Analysis by RAF Logistics will outline and give you detailed information on the actual percentage increases for each service. Several factors will determine your real rate increase for 2013, package size and weight, ground or air service, and the zone that your package will be shipped to. As a result of our years of experience combined with our robust analytic tools, RAF Logistics can provide you with a true impact of these rate increases.
Don’t be fooled by the point reduction in fuel as this is added right back in their base rates depending on service. As a result, despite the announced surcharge reductions, shippers are actually paying more for fuel because the charges are being levied from the base rates that increase annually.