United Parcel Service to Raise Delivery Rates

United Parcel Service Inc., the world’s largest package delivery company, said it would raise rates in February by somewhat less than rival FedEx Corp.’s increases. Atlanta-based UPS said it would raise its air express rates 3.7% and raise ground delivery rates 3.1%, beginning Feb. 5. UPS changed its residential surcharge to $1.05 per package from $1 and raised international export rates 2.9%. A fuel surcharge of 1.25% added in August will remain until fuel prices stabilize at lower levels, UPS said. Memphis, Tenn.-based FedEx on Wednesday said it would raise domestic rates 4.9% and export rates 2.9% on Feb. 1. UPS shares rose $1.88 to close at $59.19, while FedEx rose 3 cents to close at $38.82, both on the NYSE.