A week after United Parcel Service announced it would be raising rates on Jan. 3, fellow carrier Federal Express followed suit. Effective Jan. 3, Memphis-based FedEx will increase its published rates an average of 4.6% for U.S. domestic and export services.
The company says FedEx Ground and FedEx Home Delivery will increase an average of 2.9%. In addition, FedEx Ground will introduce an indexed fuel surcharge for both U.S. and international shipments.
Delivery area surcharges for select remote zip codes will increase $0.25, to $2.00 a package for residential locations and $1.25 for commercial addresses. The surcharge for residential delivery of FedEx Express and FedEx Ground packages will also increase from $1.75 to $2.00 a package. The per-package surcharge for FedEx Home Delivery shipments will increase from $1.40 to $1.50.
For FedEx Ground shipments the charges for declared value over $100 will increase from $0.35 to $0.40 per $100, and the maximum declared value for a ground package will increase from $25,000 to $50,000 per package. A minimum charge of $1.20 will be implemented for packages with a value between $100 and $300.
The good news: FedEx lowered its fuel surcharge by 2%.