FedEx Announces 2004 Rate Hikes

Federal Express this week announced that FedEx Express package and freight published rates will increase 2.5% on average for both domestic and export services, effective Jan. 5. FedEx Ground rates will rise 1.9%. The carrier also announced that the FedEx Ground fuel surcharge will be discontinued, although the fuel surcharge will remain in effect for all FedEx Express shipments.

FedEx announced additional rate changes:

* a delivery area surcharge of $1 per package for FedEx Ground shipments destined for commercial locations in select ZIP codes

* the surcharge for residential delivery will increase from $1.40 to $1.75 per package for Express and Ground shipments. An additional existing surcharge for express and ground shipments to residences in select ZIP codes remains at $1.75 per package

* the surcharge for FedEx Home Delivery ground shipments will increase from $1.15 to $1.40 per package—identical to the residential ground surcharge rival United Parcel Service announced last month

FedEx also will make other rate changes effective Jan. 26. These include:

* a decrease in the surcharge for Express shipments destined for commercial locations in select ZIP codes from $1.75 to $1

* a delivery area surcharge of $15 per package on Express shipments to remote areas in Alaska

* the introduction of an oversize package category subject to minimum billable weight for Express domestic packages and Ground packages

* dimensional weight pricing for shipments in customer packaging at or below one cubic foot in volume for U.S. and Puerto Rico Express shipments.

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