According to the UPS company website, Retail and SurePost rates for UPS' Ground, Air, and International services will rise by an average of 6.9% starting on December 27.

Higher accessorial fees, such as those for residential deliveries, products requiring extra handling, and delivery to remote locations, were also announced by UPS as taking effect on the same date.

The fee increase, according to the company, "helps to finance continued expansion and capability increases as we seek to maintain the excellent service standards you expect from UPS."

Depending on the terms of their UPS agreement and the characteristics of their shipments, the changes will have varying effects on shippers.

FedEx, the main competitor of UPS, also announced a 6.9% average pricing hike in September. The two industry titans in logistics often announce rate and surcharge increases at the same time; in January of last year, they both announced 5.9% rate increases.

The two businesses are raising rates even though their respective package volume growth has slowed recently and is already below its peaks from 2020 and 2021. In an earnings call, FedEx EVP and Chief Customer Officer Brie Carere stated that the business thought the rate increase was necessary due to inflationary pressures.