UPS will raise some rates by 4.9 percent in December

By The Associated PressMarketsAssociated Press

UPS says it is raising rates on U.S. ground and air shipments and international services by an average of 4.9 percent starting Dec. 24.

Air-freight rates within and between the U.S. mainland, Puerto Rico and Canada will increase by a similar amount.

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The Atlanta-based company said Wednesday that the rate increases will help pay for continuing expansion and improvements.

United Parcel Service Co. earned $2.5 billion in the first six months of the year, up 6 percent from the same period last year on a 7 percent rise in revenue.

UPS shares fell $1.15 to close at $118.55. They have gained 3.4 percent this year compared with a 14.2 percent rise in the Standard & Poor's 500 index.