By John Kell 

United Parcel Services Inc. plans to increase general rates by 4.4% at the end of March, a move that comes after rival FedEx Corp. also said it would raise its shipping rates.

UPS's rate increase, effective March 31, applies to noncontractual less-than-truckload shipments, which carries goods for multiple customers on the same vehicle. The rate increase may vary by shipment characteristics such as weight or class.

The higher rates at UPS and FedEx come as the industry faces some challenges, in particular a shift toward lower-pricing shipping services among international customers. For its part, UPS in January issued disappointing fourth-quarter results that were hurt badly by holiday-delivery problems.

UPS in November said it planned to raise rates for ground services and air and international services and accessories by 4.9% this year. The U.S. Postal Service also indicated plans in November to raise its overall prices by 2.4% this year.

Write to John Kell at john.kell@wsj.com

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