Mailing those holiday packages may seem like a relative bargain come January: UPS on Friday announced 2006 delivery rate increases similar to those that rival FedEx unveiled last month.
Atlanta-based United Parcel Service Inc. said it would raise rates for air and international deliveries by 5.5%. The world's largest package-delivery company also said it would reduce by 2% the index used to set fuel surcharges for air shipments because prices have declined recently.
Rates for ground shipments will rise by 3.9%, with no change in the fuel surcharge, UPS said. The new rates begin Jan. 2.
FedEx Corp. said in October that it would increase its prices for air and international shipments by 5.5% on Jan. 2 and reduce fuel surcharges by 2%. FedEx hasn't announced 2006 rates for ground deliveries, but analysts expect the rates to match those at UPS.