Package delivery company United Parcel Service Inc said on Monday that rates for its services within and between the United States, Canada and Puerto Rico will rise by an average of 4.9 percent as of the end of the year.

The Atlanta-based company said the rate changes for its ground, air, international and freight services would start Dec. 29.

Last month, the company's main rival FedEx Corp announced a similar rate increase of 4.9 percent, which also includes shipments between the United States and Mexico, plus within Mexico. FedEx's rate increase will take effect on Jan. 5.