FedEx plans rate increases for 2008

Staff -- Logistics Management, 10/26/2007

MEMPHIS—FedEx announced today it will increase the net average shipping rate for its FedEx Express unit by 4.9 percent, which is comprised of a 6.9 percent average increase in standard list rates and off-set by a 2.0 reduction in its fuel surcharge.

These rates will go into effect on January 7 and apply to U.S. and U.S. export express package and freight shipments, according to a FedEx statement.

Last year, FedEx raised FedEx Express rates by 3.5 percent for 2007, which was made up of a 5.5 percent average increase in standard list rates and off-set by a 2.0 percent fuel surcharge reduction.

In 2008, FedEx Express customers importing goods into the U.S. will pay U.S. dollar rates, according to the company. This move will provide a consolidated set of U.S. import rates to U.S. customers and allow them to avoid uncertainties caused by currency fluctuations, said FedEx. And it added that increases in rates for shipments inbound to the U.S. from certain international locations will take effect on January 7, 2008.

FedEx also added that rates and surcharges for FedEx Ground will also go up next year, and the rates will be announced later this year.