FedEx introduces 2013 rate hikes for Ground and Home Delivery services

Transportation and logistics bellwether FedEx rolled out non-contractual rate hikes for its FedEx Ground and FedEx Home Delivery services last Friday.

The company said rates for each service will increase by a net average of 4.9 percent and take effect on January 7, 2013.

The full average rate increase for each offering at 5.9 percent and are offset by adjusting the fuel price threshold at which the fuel surcharge begins and subsequently reducing the fuel surcharge, according to FedEx officials.  And information with FedEx Ground surcharge changes and new rates will be made available on December 7.

They added that rates are changing for FedEx SmartPost, its “last mile” delivery service partnership with the United States Postal Service, which is primarily spurred by e-commerce, but specific rate information was not disclosed.

This follows a September announcement in which FedEx rolled out its 2013 rate increases. FedEx Express package and freight rates will head up 5.9 percent for U.S., U.S. export and U.S. import services and will be partially offset by adjusting the fuel price at which the fuel surcharge begins, reducing the fuel surcharge by 2 percentage points.
In July, FedEx Freight, the less-than-truckload (LTL) subsidiary of FedEx, announced a 6.9 percent general rate increase (GRI) that took effect July 9.

FedEx officials said that this increase applies to FedEx Freight shipments within the contiguous United States between the contiguous U.S. and Canada and within Canada.

And it added that the rate for cross-border FedEx Freight shipments between the U.S. and Canada will also increase 6.9 percent for the U.S. portion for the U.S. portion of the shipment and took effect on July 9.

FedEx’ announced increased comes soon after its biggest rival UPS its new published non-contractual rates for 2013, which will take effect on December 31.

According to company officials, non-contractual 2013 rates will be comprised of a net increase of 4.5 percent for UPS Air and International Services and UPS ground packages are going up 4.9 percent.

UPS said that its increase for UPS Air and International Services is based on a 6.5 percent average increase in the base rate, minus a two percentage point reduction to the Air and International fuel surcharge table. This is down from a 6.9 percent base rate increase announced for 2012 a year ago at this time.

And the rate increase for UPS Ground services, said UPS, is based on a 5.9 percent average base rate increase, matching 2012, minus one percentage point reduction to the Ground fuel surcharge table.

UPS Next Day Air Freight and UPS 2nd Day Air Freight and UPS 3 Day Freight rates for
shipments within and between the U.S., Canada and Puerto Rico will increase by 4.9 percent, down one full percentage point from 2012’s announced rates.

In July, UPS Freight, the less-than-truckload subsidiary of UPS, announced a general rate increase (GRI) of 5.9 percent, effective July 16. UPS Freight officials said this GRI applies to minimum charge, LTL rates, and accessorial charges.