FedEx Express and FedEx Freight to Increase Shipping Rates
by Business Wire
FedEx Corp. (NYSE: FDX) will increase shipping rates for FedEx Express by a net average of 3.9% for U.S. domestic and U.S. export services effective January 3, 2011.
The full average rate increase of 5.9% will be partially offset by adjusting the fuel price threshold at which the fuel surcharge begins, reducing the fuel surcharge by two percentage points.
In addition, FedEx Express and FedEx Ground will implement a change to the dimensional weight volumetric divisor from 194 to 166 for U.S. domestic services. Details of dimensional weight charges and additional changes that will be made to other FedEx Express surcharges can be found at www.fedex.com/us/2011rates.
FedEx Freight and FedEx National LTL also will implement 6.9% general rate increases (GRI) effective Nov. 1, 2010. These rate increases apply to interstate and intrastate less-than-truckload (LTL) shipments, as well as shipments between the U.S. and Canada covered by the FXF 1000 and FXNL 501 Base Rates.
FedEx Freight’s and FedEx National's fuel surcharge will remain unchanged and one of the lowest in the LTL industry. On average, the FedEx LTL companies' fuel surcharge is 4.5 to 6.5 percentage points below the next five largest LTL carriers. The new base rates, rules tariff and fuel surcharge information for the LTL companies will be available at fedex.com/us/freight/main on Nov. 1, 2010.
“FedEx understands the needs of our customers and is focused on providing exceptional service,” said T. Michael Glenn, FedEx executive vice president, Market Development and Corporate Communications. “This pricing adjustment will allow for key investments that will enable FedEx to continue to provide industry leading service and shipping solutions.”
The FedEx Ground and FedEx SmartPost pricing changes for calendar 2011 will be announced later this year.
About FedEx Corp.
FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. With annual revenues of $36 billion, the company offers integrated business applications through operating companies competing collectively and managed collaboratively, under the respected FedEx brand. Consistently ranked among the world's most admired and trusted employers, FedEx inspires its more than 280,000 team members to remain "absolutely, positively" focused on safety, the highest ethical and professional standards and the needs of their customers and communities. For more information, visit news.fedex.com.