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The United Parcel Service’s freight division will raise non-contractual shipping rates in North American by 6.9% beginning August 1st as reported by the Wall Street Journal this past Friday.
However, for companies with existing contracts for ongoing shipments the raise will not immediately effect such clientele as their contracts are negotiated individually.
Various insiders suggest the market most likely hit by the upcoming hike will be the e-commerce industry with shipments of less than 150 pounds and LTL quantities.
According to a UPS spokesperson the rates were raised due to increased costs for technological logistics support operations along with rising fuel costs.
While prices will increase for non-contracted shippers, the advancements and effectiveness of UPS Freight offers consolation and discernment. With more than $100 million invested in new equipment and network improvements over the last two years, UPS Freight has improved the transit time in an impressive 2,000 lanes.
“We don’t envision any further increases for this year,” said Ira Rosenfeld, UPS Freight spokesman. “UPS does not sell on price but on the breadth and the depth of our portfolio offering and the quality of our service. It takes a huge investment to offer the best product in the industry.”
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