UPS follows Fedex in rate hike

NEW YORK (Reuters) - United Parcel Service Inc said last week it would raise rates by a net 4.9 percent starting 3 January, 2011, about a month after FedEx Corp. said it would hike rates.

UPS, the world’s largest package delivery company, said the net increase was for ground packages, all air express and U.S. origin international shipments.

On 29 September, FedEx, the world’s largest cargo airline, said shipping rates through its Express division and International Priority service would go up 3.9 percent on average starting 3 January.

UPS and FedEx are considered indicators of U.S. economic activity as their business expands or shrinks with the broader economy.

In reporting third-quarter profits, Atlanta-based UPS said in October that it expected a slow economic recovery without a double-dip recession.