FedEx factors in rate hikes

Dec. 6, 2005
Memphis, TN-based FedEx Corp. plans to boost its standard list rates for FedEx Ground and FedEx Home Delivery services by an average of 3.9% next year

Memphis, TN-based FedEx Corp. plans to boost its standard list rates for FedEx Ground and FedEx Home Delivery services by an average of 3.9% next year. There will also be changes to FedEx Express, FedEx Ground and FedEx Home Delivery surcharges.

FedEx previously announced an increase to the net average shipping costs for FedEx Express by 3.5%, which comprises a 5.5% average increase in standard list rates and is offset by a 2% reduction in its fuel surcharge. These rates are effective Jan. 2, 2006 and apply to U.S. domestic and U.S. export packages and freight.

“These rate adjustments allow FedEx Express and FedEx Ground to continue to improve service levels and expand their networks,” said T. Michael Glenn, FedEx executive vp-market development.

Other rate changes are on the way for 2006 as well. The delivery area surcharge for select ZIP codes will increase by five cents per package for commercial locations and 10 cents per package for residential locations for FedEx Express and FedEx Ground. A 10 cent per package residential surcharge increase applies for FedEx Express and FedEx Ground shipments next year, along with a residential surcharge increase for FedEx Home Delivery of 25 cents per package, the company said.

There also will be an increase in the charge for direct signature required of 25 cents a package and an increase in the adult signature required charge of 50 cents per package for FedEx Express and FedEx Ground shipments.

Additional handling fees are being added to FedEx Express and FedEx Ground shipments of $1 per package, with another $1 fee added to FedEx Express and FedEx Ground deliveries for collect on delivery (COD) shipments as well as FedEx Ground electronic collect on delivery charge (ECOD)

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