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UPS Follows FedEx, Sets Rate Increase

The parcel shipping companies already told us the cooling economy was slowing their business.

Now they're doing something proactive about it.

United Parcel Service

(UPS) - Get United Parcel Service, Inc. Class B Report

said it will raise rates on several of its delivery options, an announcement that comes just

one day after rival


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(FDX) - Get FedEx Corporation Report

set plans to charge more for shipping services.

UPS air express rates for next day air, second day air, and three day select will increase 3.7%, effective Feb. 5. Commercial ground shipment rates will rise 3.1% across all weights and zones, and a residential surcharge will increase by 5 cents to $1.05 for each package, the company said.

The company's international export rate will jump 2.9%, and the temporary fuel surcharge of 1.25%, which was implemented in August, will remain in effect because of high fuel prices. The package delivery company said customers can view the new rates and other changes on its Web site beginning Jan. 4.

Shares of UPS gained $1.44, or 2.5%, to $58.75 in recent

New York Stock Exchange