Home / Markets / Industries / Transportation

Friday, October 17, 2008

UPS Announces Higher Shipping Rates for Next Year

FOXBusiness

United Parcel Service Inc. (UPS), the world's largest package delivery service, said Friday it will charge more to ship parcels next year.

Ground shipment rates will increase by about 5.9%, and air shipments by about 4.9%, the company said. The new rates will take effect on Jan. 5.

UPS also said it will report its third-quarter financial results next Thursday. UPS Chairman and Chief Executive Officer Scott Davis and Chief Financial Officer Kurt Kuehn are scheduled to conduct an investor conference call.

UPS is viewed as a bellwether for the broader U.S. economy since companies and households tend to send more packages when times are flush and less packages when money gets tight.

The rate increases come despite a significant drop in the price crude oil, an important factor for any transportation company. A barrel of crude oil cost around $72 on Friday, down from $148 this summer.

Shares of UPS fell 2.1% to $50.54 on Friday.

Fox Business Video

- Jerry Rice Talks Career
- Nov 21, 2009
  
  NFL Receiver on career on the gridiron
- John O'Hurley as Venture Capitalist
- Nov 21, 2009
  
  Comedian on life as venture capitalist
- Excess Spending in Congress
- Nov 21, 2009
  
  Saving $100 Million
- Cavuto Business Report 11-20-09
- Nov 21, 2009
  
  Business Report: Cavuto
- Merging 4,000 Pages of Reform
- Nov 21, 2009
  
  Fossella on combining bills