posted on April 8, 2006 08:05:02 AM
FedEx Freight to raise general rates nearly 6%
Friday April 7, 5:08 pm ET
FedEx Freight announced Friday it will raise general service rates by 5.95 percent beginning on April 24.
The rate increase applies only to FedEx Freight, the less-than-truckload subsidiary of FedEx Corp., not any other FedEx divisions.
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The increase will apply to interstate and intrastate traffic, and to selected shipments between the U.S. and Mexico and Canada, the company said in a release. Additional adjustments will include minimum and access charges in select service areas.
The rate increase is related to service offerings and innovations such as its no-fee, money-back guarantee, said Dennie Carey, senior vice president of marketing for FedEx Freight, in a statement. Those services involve fast-cycle logistics and require continuous investment.
Other factors contributing to the rate increase include increasing highway tolls and access fees and the investment in more expensive, environmentally-responsible equipment, the company said.
After April 24, the new FedEx Freight base rate and rules tariffs will be available on the company's Web site, www.fedex.com/us/freight/main/.
With annual revenue of $20 billion, Memphis-based FedEx (NYSE: FDX - News) is a global provider of transportation, e-commerce and supply-chain management
posted on April 8, 2006 08:09:14 AM
Don't think this should effect many people here though. This is FedEx FREIGHT. Not the rates for normal FedEx services like Ground and next day services. This is their freight service for truck loads and palleted items, correct me if I'm wrong though.
Only two things are infinite, the universe and human stupidity, and I'm not sure about the former. - Albert Einstein
posted on April 9, 2006 02:14:16 PM
Both FedEx Express & Ground rates were increased as of 1/2/06. You can get a FedEx Retail Counter guide with both rates in it at Kinkos or FedEx offices.
posted on April 9, 2006 09:06:15 PM
Shipping rates are probably going to jump a lot at the beginning of next year. The Government has new regulations for diesel fuel and diesel vehicles going into effect then. They are estimating that new fuel will go up about $.10 per gallon and the fuel mileage will drop a few percent. New trucks will go up from $2000 to $10000 because of the emission equipment (which will also drop another couple percent off the fuel mileage).
All the truck manufacturing companies are expecting record high sales this year and record low sales next year.
posted on April 9, 2006 09:30:39 PM
Once the fixed overhead is pretty well established, the rates will be stable for at least a year. What you have to watch closely is the fuel surcharge. There's a history behind this little devil that was established in 1973 to provide for short notice increases to offset the flucuation in diesel prices. This surcharge can range from 1/2% to 25%. Many times I have seen it jump 5% on less than a weeks notice. Don't let it bite you in the butt, especially on heavier LTL shipments.
If Murphy's law is correct, everything East of the San Andreas Fault will slide into the Atlantic
Only two things are infinite, the universe and human stupidity, and I'm not sure about the former. - Albert Einstein