UPS To Raise North American Freight Rates By 6.9%

DOW JONES NEWSWIRES

United Parcel Service Inc.’s (UPS) freight division will raise average noncontractual shipping rates in North America by 6.9% starting next month, as the industry copes with rapidly rising fuel costs.

The move follows a 5.9% rate increase in October by its UPS Freight unit, the fourth largest less-than-full-truckload carrier in the U.S. Rival FedEx Corp. (FDX) also has been raising its rates to cope with high fuel prices.

The package shipper said the higher rates in the U.S., Canada and Mexico apply to minimum charges, less-than-full-truckload rates and supplemental charges.

The company in April trimmed its global and U.S. economic growth forecast but said it expects freight volume to gain pace despite the “cloudier” outlook. UPS reported a 66% rise in first-quarter profit as higher prices, productivity gains and a shift by customers toward more premium products countered rising fuel costs.

Shares were up 25 cents at $73.18 in early trading. The stock is up 26% in the past year.