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UPS increases rates for 2012

Once you've finished your holiday shopping, get started on your holiday shipping -- it will cost more in 2012.

By Giselle Smith Nov 21, 2011 6:49PM

Some people don't send all of their holiday packages by Christmas day. Some of us -- I mean them -- don't necessarily even get all of those packages out the door by New Year's Day.

But we should make a special effort this year because -- if we're sending anything via United Parcel Service or FedEx-- it's going to cost about 5% more in 2012.

On Friday, Atlanta-based UPS -- the world's largest package delivery company -- announced a rate hike for most of its shipping services, which will take effect Jan. 2, 2012, according to Reuters. The new rates represent a net increase of 4.9% over 2011 rates for ground and air shipments, according to UPS. Ground package rates will increase 5.9% less a 1% decrease in the fuel surcharge, and Air services and U.S.-originated international shipments will increase 5.9%, less a 2% fuel surcharge decrease.

The percentage rate increase is about equal to what the company announced in each of the last five years, according to the Journal of Commerce.

Demand for UPS services is expected to increase during the holidays, Reuters reported: "Consumers increasingly order using the Internet in the final few weeks before the holidays, and those goods are delivered mainly by UPS and FedEx."

Following FedEx's lead

In September, Memphis-based FedEx announced it would increase rates by net 3.9%. Post continues below.

Earlier this month, UPS announced that it anticipated at 6% bump in holiday shipments for 2011 as compared to 2010, according to The Associated Press. The delivery company predicted that online shopping would turbo boost the 120 million packages to be shipped in the week before Christmas worldwide, up from 113 million during that week last year.

In October, FedEx said it expects to handle about 260 million shipments between Thanksgiving and Christmas, representing a 12% increase over that same period in 2010, according to the Wall Street Journal.

More on MSN Money:

Nov 21, 2011 11:50PM
This is why I use the post office! I can send a package at the same speed for less!
Nov 22, 2011 5:57AM
Honestly, can't beat USPS they are faster, cost less and the package does not look like a gorilla was stomping on it. The abuse the package takes is the main reason I use USPS priority flat rate and they are 2-3 days faster for the same price of UPS ground  .... and with USPS the package looks the same as when it was sent ...
Nov 22, 2011 8:22AM
Actually guys and gals- If you do your homework, The US Postal Service has NOT USED your Tax Dollars for its operations. The government has merely sponged off the USPS profit for years by collecting revenue allegedly to fund Pension and health bennies, and then scarfed up the fund to use for other non-Postal expenditures. The Post Office has been left with a ledger Loss due to these massive expectations for Funds for health and pension waaaay too far in advance, thusly bankrupting the Service. If the Government was required to Pay back the Stolen/Allocated postal funds or at least give the Postal Service a "CREDIT" for several years, you would see that the Service most likely would again show a Profit or at least a minimum loss.
Nov 21, 2011 8:11PM

How can UPS and FedEx keep raising rates 5.9% each and every year.   They do more

to harm the economy than anything else I can think of.    They make more

businesses go belly up than any other factor.   


Geez, don't you wish you could just raise your prices 5.9% each 1st Monday of the new year.

These Bast**ds are greedy as greedy can be.   They tell you it's because they are giving

us better service, but, they are just greedy bast**ds

Nov 21, 2011 7:51PM

Hey hairy- they are talking about UPS- NOT USPS. Can't you read?


Nov 22, 2011 11:19AM

If you want to save money and get good delivery times use the USPS priority mail with tracking!

For any skeptics out there go to there site at and you will see a wide variety of shipping options and mailing services. The boxes you need are free and they have free pickup at your request. they are constantly revising the website with new and improved services. One which will be having the ability to send anyone your own personal card for birthdays, marriage, having a baby, graduation, etc; etc; through your smart phone. I have used them with great success for my ebay business using priority mail which has the tracking with it and you are able to print out your own labels. I then drop them off at the post office without waiting in line.

We need our post offices which is vital to or country that's why congress needs to stop making them prefund health care for future retiree's in the amount of 5 billion dollars a year. They also

have over funded the FERS and CSRS retirement systems by billions and congress is road blocking them from getting those funds. If congress would take the handcuffs off we would have a Postal Service that would operate in the black which also means rates stay in check.

Nov 21, 2011 8:49PM
You can raise your rates anytime you want. You just have to be able to absorb the backlash. UPS is so cash rich they can absorb a huge hit every time they raise their rates. Any lost revenue is made up in the rate hike. As they say at Big Brown " It's all figured in !"
Nov 22, 2011 7:17AM

UPS and FedEx rate increases have been too high year after year and do not reflect the realities of the recession. This is the result of the Justice Department allowing oligopolies and the destruction of competition. UPS billing department will nail you with an $11 address charge, even if you happen to have the street address correct but mistakenly put a wrong suite number. The truth of the matter is that UPS knows almost everyone's correct address and has it in their system. They are in the business of collecting fees. On the other hand, if they do not deliver on time, which means they promise to give you a refund, their billing department does not automatically give you a credit. You have to call to get the credit, wasting valuable time. They know people don't have the time. After all, do you want your $30/hour bookkeeper spending time with UPS on the phone? Their computer system nails you for the address change but does not credit you for late deliveries, a much worse offense!


We will miss the post office and it's secure deliveries and Federal laws protecting our mail. Other countries have dishonest workers who steal packages or just don't deliver the mail on a consistent basis. In Venezuela, as just one of many examples, businesses use private couriers to get US mail to Miami and into our system, as they don't trust their own country's postal system. Email is not secure.


If you like cell phones that don't work half the time, you won't miss the postal service. If you like distorted flat screen tvs, you won't miss the postal service. If you think digital pictures are as good as film, you won't miss the postal service. If like digital greeting cards, you won't miss actually receiving and having the fun of receiving a real card. If you think digital sound is as good as analog (LPs), you won't miss the postal service. If you don't mind when your electronic check paying system goes down, you won't miss the postal system.

Nov 22, 2011 10:42AM
Use the US Postal Service for your letters and packages.  They deliver everywhere in the country for less.  Their rates have not increased like the private delivery companies' rates have.
Nov 22, 2011 8:39AM
2012 is going to be the mark for a HUGE change in the cost of living.

There have been many companies make claim to increase in costs at some time during 2012 with most saying the increase will come at the beginning of the year.

I hope everyone is prepared or at the least, ready.
Nov 22, 2011 4:49AM
now when you order online it will cost more to ship than what the item originally cost. you'll be paying double. thanks for nothing ups. merry christmas.
Nov 22, 2011 9:33AM
Oh good, pay more to just have the delivery guy leave my package on the curb without making any attempt to ring my doorbell - ingenious!
Nov 22, 2011 4:50AM
boycott them all. stop buying crap you dont need anyway.
Nov 21, 2011 9:26PM

Hairyntz: "What they need to do is get rid of the union and people who sleep on the job!! Believe me i worked there people sleeping, taking advantage of o.t. taking excessive breaks and lunch breaks. You want to restructure usps go in undercover and take a look for yourself.."




    ...Good God, it was that great!  Why did you leave?  You could still be sleeping and taking breaks.  You weren't so stupid as to leave that were you?

Nov 22, 2011 11:35AM
UPS is the most over priced dirt bag delivery service still in business today!
Nov 22, 2011 12:24PM

The USPS is in dire condition due to a congressional mandate that they fund benifits for a strange period of 75 years. This policy effectivly kills the postal business in America can do that and wont have to.


If you eliminate competition you set the stage for skyrocketing prices. Which members of congress had UPS and FED EX stock?


Nov 22, 2011 5:48AM

Here's the deal, i work for ups and the .com business has really been booming over the last 10 years. and the increase to ship is so the inferstructure can be mantained and upgraded to handle the higher volume of packages. most large companies that people buy from will have flat rates or even free shipping to the customer. and the drivers and hub workers are union (im a union worker) but the management is not. we are the muscle behing the man getting your goods to you but the worker does not make the rates!! and for sleeping on the job... HA!! i would like to see how you would be able to unload a 45 foot semi trailer in under 45 mins containing packages anywhere from 140lbs- 1lb with the average weight about 30lbs! at the rate of about 1000 packages an hour for one person!

there's a lot more i can add to how the job is but in all im proud to work there and you all can keep on clicking to shop, i do appriciate it and because of that i do have a job WinkThumbs up

Nov 22, 2011 4:36AM
UPS Sucks. Just more Unions spending your union dues on a political party that you don't want.
Nov 22, 2011 6:10AM

(arizonaron) say's "....make the rich pay their fair share of taxes". Don't know what that has to do with UPS raising their rates but one darn thing is surely apparent, the seeds of inflation have been firmly planted and the Government clowns, Big Ben and the Fed are in complete denial.


As for UPS, raise away my friends since we have little left to spend anymore so our only contact is eyeballing your big brown trucks blowing down the road past our house.

Nov 22, 2011 5:30AM
how about gift cards :) and mail it like a letter.. that would put a damper on it.
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