We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Change Me
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Change Me
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
Home » FedEx to raise ground parcel rates 4.9 percent; increase matches UPS' parcel hike
newsworthy

FedEx to raise ground parcel rates 4.9 percent; increase matches UPS' parcel hike

December 3, 2012
DC Velocity Staff
No Comments

FedEx Corp. announced late Friday that its ground-parcel unit, FedEx Ground, will increase its 2013 noncontract rates by a net average of 4.9 percent, effective Jan. 7.

The increase matches the tariff rates announced in mid-November by UPS Inc., FedEx's chief rival. The two companies have a near-duopoly on the U.S. ground parcel market for business-to-business traffic.

Tariff rates on FedEx's home delivery unit will rise by the same amount, it said. Rates on its FedEx SmartPost service, handled in conjunction with the U.S. Postal Service will also increase, but the company didn't provide details in its announcement.

The full increase of 5.9 percent on FedEx Ground and FedEx Home Delivery will be partially offset by reducing by 1 percentage point the applicable fuel surcharge on the services, Memphis-based FedEx said.

FedEx had earlier announced 5.9-percent rate increases for its FedEx Express air and international services, offset by a 2-percentage-point reduction in fuel surcharges. FedEx Freight, the company's less-than-truckload unit, had implemented a 6.9-percent general rate increase in July.

FedEx Ground has been a stellar performer for the company as it has capitalized on a secular shift by U.S. shippers to lower-cost ground services and away from airfreight. In FedEx's fiscal first quarter, which ended Aug. 31, the unit reported an 8-percent year-over-year increase in revenue and a 9-percent gain in operating income.

As part of a major company revamp announced in October, FedEx Ground's network capacity will be expanded to enable it to accommodate 45 percent more shipments by 2018 than it does today.

In mid-November, UPS announced a 4.9-percent net increase for 2013 on its ground parcel services and a 4.5-percent increase on its air letter, air package, and all U.S.-origin international services, effective Dec. 31.

Additionally, UPS announced a 4.9-percent tariff rate increase on airfreight shipments moving within and between the United States, Canada, and Puerto Rico. It also declared a 4.9-percent tariff rate increase on its three-day delivery services—much of which moves on intermodal services—within and between the same points.

Transportation Trucking Less-than-Truckload Parcel & Postal Carriers
KEYWORDS FedEx U.S. Postal Service UPS
  • Related Articles

    FedEx to raise ground service rates 4.9 percent

    UPS hikes 2016 tariff rates 4.9 percent on ground service; 5.2 percent on air, international

    UPS to hike tariff rates 4.9 percent, shrink dimensional price divisor on 1-cubic-foot parcels

Recent Articles by DC Velocity Staff

ProMatDX 2021: Powering a more productive fleet

ProMatDX 2021: Five steps to retrofit success

ProMatDX 2021: What’s in your backyard?

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • A look into the future of robotics

  • A primer on warehouse robots

  • Exotec Skypod System Adopted by Gap Inc. to Optimize Returns Process

  • Roadrunner Freight bolsters LTL capabilities with $50 million in new backing

  • Truck driver availability tightens to three-year low, ACT says

Now Playing on DCV-TV

B56eecf1 4687 42a4 865e c3f3223925f7

How serious are you about controlling your freight costs?

DCV-TV 4: Viewer Contributed
If you’ve been feeling like your freight budget is under attack, you’re in good company! Whether you’re looking at the ocean, parcel, LTL, truckload, or air markets, capacity is tight and prices are soaring.RELATED RESOURCES:Rapid AssessmentVisit our websiteSubscribe to our YouTube Channel

FEATURED WHITE PAPERS

  • Special Report: Supply Chain Trends in Retail & Consumer Goods

  • Fortify Your Operational Resilience

  • Cold Storage Automation: Leveraging Advanced Technologies to Meet Increasing Demand

  • The modern warehouse: Maximizing productivity and capacity

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2021. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing