UPS, United, American Raise Freight Rates

United Parcel Service Inc., the world’s largest package delivery service, plans to raise its air express rates 3.5% and ground rates 3.1%. Higher costs, including fuel and labor, prompted the changes, which will take effect Feb. 7, spokeswoman Susan Rosenberg said. Likewise, two of the nation’s largest air carriers, United Airlines and American Airlines, said they are adding a fuel surcharge to the cost of shipping freight, joining other carriers that have responded to higher fuel prices. UPS also will raise international export rates from the U.S. by 2.9%, the first increase of its kind in three years. A residential delivery surcharge for some destination ZIP Codes has been increased 50 cents to $1.50 a package, the company said. Jet-fuel costs have more than doubled in the last year as the cost of crude oil has climbed, although UPS was able to minimize the effect by locking in prices on long- and short-term contracts, Rosenberg said. The company last February raised its U.S. rates about 2.5%, its smallest increase in more than a decade, thanks to lower oil prices. In NYSE trading, shares of Atlanta-based UPS fell $1 to close at $68. Stock in United parent UAL Corp. fell 81 cents to close at $76.06, and stock in American parent AMR Corp. rose 81 cents to close at $65.50, also on the NYSE.