UPS rates to rise by nearly 5 percent

Here’s an Associated Press story on the planned increase in UPS rates for next year:

United Parcel Service Inc. says rates for next year are going up 4.9 percent for ground and air-express shipments.

UPS, the world’s largest package-delivery company, said Monday that the new rates will take effect Jan. 3.

Imports of electronics products from Asia, including the Apple iPhone and iPad, have boosted UPS this year and helped offset slow growth in the U.S. The company reported last week that third-quarter net income rose 81 percent compared with the same period in 2009.

But officials told The Associated Press at the time they were not optimistic about a rapid economic recovery.

As the economy grinds away, consumers have continued to trade down — opting for slower but less expensive shipping options. Businesses, however, are often paying higher rates for faster delivery, according to UPS officials.

That’s helped UPS make more money per package than it did last year.