FedEx Will Boost Shipping Rates by 3.9% on Average in JanuaryFedEx (FDX), the world's biggest air-cargo carrier, will boost shipping rates in January as it looks to offset the effects of rising fuel costs on its bottom line.

On Jan. 3, the company will increase FedEx Express shipping rates for domestic and export services by an average of 3.9%. FedEx's actual planned 5.9% average-rate hike will be mitigated by 2 percentage points when factoring in an adjustment to the minimum threshold for fuel surcharges, the company said in a statement Wednesday.

"This pricing adjustment will allow for key investments that will enable FedEx to continue to provide industry leading service and shipping solutions," said FedEx Executive Vice President T. Michael Glen in the statement.

Earlier this month, FedEx said earnings for its most recently completed quarter more than doubled from a year earlier to $380 million, thanks to an 18% increase in revenue, lower depreciation expenses, and other costs that remained relatively stable, all of which more than offset the impact of higher fuel prices. Fuel costs jumped 33% to $887 million and accounted for 9.4% of sales, up from 8.3% a year earlier. The company also said it would lay off 1,700 workers after combining its FedEx Freight and FedEx National LTL operations in late January.

In November, FedEx will also boost rates for FedEx Freight and FedEx National LTL by 6.9%. Rate changes for FedEx Ground and FedEx SmartPost will be announced later in the year, the company said Wednesday.

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jyatt7

Good riddance !!!! There are many shippers !! Customers are going to run from the guys! How stupid in the midst of this recession !!!!!

September 30 2010 at 2:39 PM Report abuse -1 rate up rate down Reply
Ron & Dolores

FedEx can go out of business, they have competition, continually raising prices id for there stock holders, not to improve business

September 30 2010 at 2:08 PM Report abuse -1 rate up rate down Reply
gailneuman

this is bullshit if their income doubled in the last year!! has no one told them the cost of gas has come down? no need to raise any rates!

September 30 2010 at 1:42 PM Report abuse +1 rate up rate down Reply
rexpbass

FedEx is laying off freight,ltl workers because they bought Overnight,Motor Cargo and some others now they have to many Docks in one town so if they have 4 docks in one town and they can handle all the freight on one dock they need to close the other 3 simple!!!!! Wait till UPS and Yellow combine theres and find out how many get layed-off sorry but it will happen!!! The only problem these trucking co.'s will have is finding a legal driver and they will have to pay big bucks for a good driver!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

September 30 2010 at 11:57 AM Report abuse +2 rate up rate down Reply
Dennis

DLCCARS44 THE FEDS THINK THAT IF THEY TELL YOU LONG ENOUGHT THAT EVERYTHING IS GREAT YOU WILL BELEAVE IT.

September 30 2010 at 10:39 AM Report abuse +2 rate up rate down Reply
cvdunbar

did anyone know Fed -X gets money from the fed. goverment, they take the money but they must hire a certian group of people to stay afloat.

September 30 2010 at 9:08 AM Report abuse +2 rate up rate down Reply
setec5354

Dow will crash and only in the matter of days or watch out when the anniversary of black monday rolls by!!!!!

September 30 2010 at 9:03 AM Report abuse +2 rate up rate down Reply
cvdunbar

greed.

September 30 2010 at 9:03 AM Report abuse +4 rate up rate down Reply
setec5354

lay off more people, raise prices and how stupid are the analysis claiming recovery started last year June 2009. In this Era of Enronization,there is no recovery except rhetoric!!! Dow 3000 soon!!!

September 30 2010 at 8:58 AM Report abuse +2 rate up rate down Reply
1 reply to setec5354's comment
daveswrath0704

yes in Jan FedEx raise rates and next week they come out and say THERE are Laid off more people need more profit never happy (GREED)

September 30 2010 at 8:51 AM Report abuse rate up rate down Reply