FedEx To Raise Rates In 2011

FedEx will raise its rates an average of 5.9% effective January 3, 2011 according to its website. FedEx cites fuel prices, the cost of updating or replacing equipment and vehicles as considerations that led to the increase

FedEx says that they plan on adjusting the current fuel surcharge to partially offset the rate increases. The fuel surcharge will be reduced by 2%.

Many shippers including the US Post Office have had to deal with higher fuel prices this year. Gas prices started the year around $2.60 per gallon. At the end of October, gas prices were close to $2.83 per gallon.

The Postal Service is currently appealing a rate request denial that would have raised First Class Stamps by 2 cents. Unlike FedEx, the Postal Service must request rate increases from an oversight committee.

Rate increases announced by FedEx will affect many of their popular service including FedEx Ground, FedEx Home Delivery and FedEx SmartPost. Their retail rates will change. Rates will change for FedEx Express package and freight rates U.S. and U.S. export service, FedEx Express U.S. import rates. Other fees and surcharges will be impacted also.

The rate increases will affect FedEx Express U.S. import rates, rates to Puerto Rico and International Premium rates. FedEx will also adjust rates for their FedEx International Priority and FedEx International Economy rates.

The FedEx website also describes additional handling surcharges of up to $8 per package to FedEx First Overnight packages.

Additional charges will include a $2.75 charge for shipping to homes for their FedEx Express package.

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Posted by John Timmons on Oct 29 2010. Filed under Business News, Featured News, Marketing News. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.