Package-delivery giant

United Parcel Service

(UPS) - Get Report

said it is raising its shipping rates for 2003, consistent with rate adjustments the company has made in the last few years.

The Atlanta-based company said it will increase rates 3.2% at its Next Day Air unit and 2.9% at its Worldwide Express division. Rates for commercial ground services will increase 3.9%, with residential surcharges rising to $1.15 from $1.10. Back in August, the company began guaranteeing residential ground deliveries, completing its customer service initiative to guarantee all deliveries worldwide.

"We are confident that UPS's portfolio of transportation services continues to offer the best value in the industry," the company said in a press release.

The shares traded up 73 cents, or 1.2%, at $62.34 on the

New York Stock Exchange

.