UPS to Raise Rates Starting Feb. 1

United Parcel Service said higher labor and fuel costs are causing it to raise by about 3.9% its rates on overnight, second-day and three-day domestic air service for both businesses and residential customers. Increases for ground shipments will average 3.4% for business and 4.3% for residential customers. Foreign shipments from the U.S. will increase between 2.6% and 4.9%. The closely held Atlanta-based shipping company isn’t alone in raising rates. Federal Express, UPS’ main competitor, has announced plans to add a 2% surcharge beginning Feb. 3 to cover increased fuel costs. Airborne Express and DHL Worldwide Express say they are also considering raising rates.