FedEx Announces Express Rate Hikes

Effective Jan. 2, Memphis, TN-based Federal Express Corp. will charge an additional 3.5% for U.S. domestic and U.S. export Express package and freight shipments. The actual prices are going up 5.5% but will be offset by a decrease of 2 percentage points in the fuel surcharge rates.

FedEx will also increase the delivery area surcharges for Express shipments sent to certain areas by up to $0.10 per package. The new delivery area surcharge for residential locations will be $2.10 per package, and the new surcharge for commercial locations will be $1.30 per package. In addition, the surcharge for residential delivery will increase from $2.00 to $2.10 per package for Express shipments.

“Like any carrier, we announce shipping rate adjustments annually,” says FedEx spokesperson Jim McClusky. “But with all that’s happened in recent months with Hurricane Katrina and rising fuel costs, we decided to announce things a little early this year.” FedEx has traditionally waited until November and December to announce its January rate hikes, and it plans to changes to FedEx Ground rates later this year.