United Parcel Service, Inc. (NYSE: UPS) announced Friday the company plans to increase shipping service prices by an average of 4.9% after the holiday season, on December 26th. For consumers and businesses who plan to ship items heavier than 150 pounds in the U.S, Canada and Puerto Rico, the price hike will take effect next week, on September 9th.
This is a response to a major hike in air shipping prices, which have grown by 95.5% in a decade, according to statistics provided by Lojistic.
UPS’s business performance is quite stable however. The popular package delivery company had earnings of $2.4 billion in the first six months of this year, a 6 percent increase year over year.
According to Scott Schneeberger, an Oppenheimer analyst, FedEx (NYSE: FDX) is also expected also announce an increase in shipping rates of about 5%later this month.