FedEx Freight Rates Jumping 5.9%

Memphis-based FedEx Freight, a subsidiary of courier FedEx Corp., will increase its rates by 5.9% beginning on June 14 for interstate and intrastate traffic and for selected shipments between the U.S., Canada, and Mexico. FedEx Freight provides less-than-truckload (LTL) freight services—large pallet shipments to businesses–weighing 150 lbs.-2,200 lbs. The previous rate increase for FedEx Freight occurred last June.

The company says the June increases are not related to the spike in fuel prices. Rather, FedEx Freight cites investments in technology and compliancy with the Environmental Protection Agency (EPA) as the reason for the rate hike. During the past year, FedEx Freight says it not only made significant technology enhancements but it also added strategic service centers and expanded its fleet with more than 1,800 new tractors and trailers.

In a release, vice president of marketing Dennie Carey said the investments carry higher costs than in the past, especially the EPA-compliant engines, which increasingly expensive to acquire and operate. And with additional EPA requirements coming in 2006, 2007, and 2010, Carey said increased costs are likely.

Partner Content

The Gift of Wow: Preparing your store for the holiday season - Netsuite
Being prepared for the holiday rush used to mean stocking shelves and making sure your associates were ready for the long hours. But the digital revolution has changed everything, most importantly, customer expectations. Retailers with a physical store presence should be asking themselves—what am I doing to wow the customer?
3 Critical Components to Achieving the Perfect Order - NetSuite
Explore the 3 critical components to delivering the perfect order.
Streamlining Unified Commerce Complexity - NetSuite
Explore how consolidating multiple systems through a cloud-based commerce platform provides a seamless experience for both you, and your customer.
Strategies for Maximizing Mobile Point-of-Sale Technology - NetSuite
Learn the top five innovative ways to utilize your mobile POS technology to drive customer engagement, increase sales and elevate your brand.