UPS and FedEx Express will increase their shipping rates from January 1, 2007.

UPS will increase its list rates by an average of 4.9% for ground shipments and all air express and US-origin international shipments.

The increase for air express and international shipments is based on a 6.9% increase in the base rate, less a 2% reduction in the current fuel surcharge.

FedEx Express will increase the net average shipping rate by 3.5%, comprising a 5.5% average increase in standard list rates offset by a 2% reduction in its fuel surcharge.

The new rates will apply to US domestic and US export express package and freight shipments.

The fuel surcharge will also be levied on some transportation-based surcharges such as Residential and Delivery Area surcharge for all domestic shipments and for those US export and US import FedEx Express shipments paid by US payers. Additional changes will be made to other FedEx Express surcharges.

FedEx Ground rates also will increase for 2007, and a new weight system will be introduced for FedEx Ground shipments greater than three cubic feet, with the charge calculated on dimensional weight or actual weight, whichever is the higher.