FedEx Freight raising rates to cover higher costs

Memphis, TN-based LTL carrier FedEx Freight, a $2.7 billion subsidiary of FedEx Corp, is planning to boost its general freight rates by 5.6% effective May 16. This will apply to interstate and intrastate traffic, as well as selected shipments between the U.S., Mexico and Canada.

Dennie Carey, FedEx Freight’s senior vp-marketing, said substantially higher tolls for new and existing highways plus costs associated with new driver security requirements are the major reasons behind the rate boost.

He added that the rates would help offset acquisition and maintenance costs of the new low-emission diesel engines that meet tighter EPA pollution requirements.