December 4, 2009

FedEx Ground to increase 2010 rates by 4.9 percent

Rate increases for FedEx Ground and FedEx Home Delivery services take effect Jan. 4.

By Mark B. Solomon

FedEx Corp. said Dec. 3 it will raise the list rates for its FedEx Ground and FedEx Home Delivery services by an average of 4.9 percent, effective Jan. 4.

Memphis-based FedEx previously announced it would increase shipping rates for its FedEx Express air unit by an average of 5.9 percent for U.S. domestic and U.S. export services, also effective Jan. 4. The FedEx Express rate increase will be partially offset by adjusting the per-gallon fuel price at which the fuel surcharge begins; the move effectively reduces the fuel surcharge by two percentage points, FedEx said.

Recently, UPS Inc., FedEx's chief rival, announced an increase of 4.9 percent on its ground parcel shipments, and an average increase of 6.9 percent on air express and U.S. export shipments. The UPS increases include a 2-percent reduction in the fuel surcharges for air and international export shipments, resulting in a net increase of 4.9 percent.

About the Author

Mark B. Solomon
Executive Editor - News
Mark Solomon joined DC VELOCITY as senior editor in August 2008, and was promoted to his current position on January 1, 2015. He has spent more than 30 years in the transportation, logistics and supply chain management fields as a journalist and public relations professional. From 1989 to 1994, he worked in Washington as a reporter for the Journal of Commerce, covering the aviation and trucking industries, the Department of Transportation, Congress and the U.S. Supreme Court. Prior to that, he worked for Traffic World for seven years in a similar role. From 1994 to 2008, Mr. Solomon ran Media-Based Solutions, a public relations firm based in Atlanta. He graduated in 1978 with a B.A. in journalism from The American University in Washington, D.C.

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