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FedEx Announces Tranche of Rate Hikes

FedEx Corp. said Wednesday it will increase shipping rates for its FedEx Express, FedEx Ground and FedEx Freight subsidiaries on Jan. 3, after the parcel giant and USPS already raised fees for the holiday season.

FedEx Express shipping rates will increase by an average of 5.9 percent for U.S. domestic, and U.S. export and import services. FedEx Ground and FedEx Home Delivery shipping rates will also increase by an average of 5.9 percent. FedEx Ground Economy shipping rates will also rise.

FedEx Freight shipping rates will rise by an average of 5.9 percent for customers that use FXF PZONE and FXF EZONE, and by 7.9 percent for customers who use FXF 1000 and 501. This change applies to shipments within the U.S.–including Alaska, Hawaii, Puerto Rico and the U.S. Virgin Islands–and between the contiguous U.S. and Canada. FedEx Freight shipping rates will also increase for shipments within Canada, within Mexico and between the contiguous U.S. and Mexico.

In addition, effective Nov. 1, a fuel surcharge increase will be applied to FedEx Express’ U.S. domestic package and freight services, FedEx Ground and FedEx Freight shipments.

Effective Jan. 17, FedEx Freight will introduce a No Shipment Tendered surcharge that applies when a pickup is performed and no shipment is tendered to the carrier. On that same date, the International Out-of-Delivery-Area Surcharge and International Out-of-Pickup-Area Surcharge rates will be determined based on the corresponding tier of the ZIP code, postal code or city of the shipment’s origin and/or destination location for International Express Freight and Parcel services.

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Also on effective Jan. 17, a Delivery and Returns Surcharge will be assessed on packages that are delivered or returned using FedEx Ground Economy services.

Effective Jan. 24, Additional Handling Surcharge and Oversize Surcharge rates for U.S. Express Package Services and U.S. Ground Services will be determined based on the shipment’s zone.

FedEx said these changes reflect incremental costs associated with the challenging operating environment, while enabling FedEx to continue investing in service enhancement, fleet maintenance, technology innovations, and other areas to serve customers more effectively and efficiently.

Beginning Jan. 3, FedEx will offer customers that ship internationally an additional option for time-definite deliveries in one to three business days. With the new FedEx International Priority Express service, customers will be able to schedule delivery by noon to select destinations. Early morning delivery will continue to be available through the FedEx International First service and end-of-day delivery to more than 220 countries will continue to be offered through the FedEx International Priority service.