US-based freight forwarder UPS will increase its domestic and ex-US freight costs between six and seven per cent from January next year.

The general rate increase for packages will average around 5.9 per cent for 2009. Packages bound for destinations outside the US will have an average increase of 4.9 per cent.

The rate hike for air express and international shipments is based on a 6.9 per cent rise in the base rate, less a two per cent decline in the air and international fuel surcharge index.