FedEx To Increase Shipping Rates


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FedEx To Increase Shipping Rates

Eddy Metcalf

September 30, 2010 - FedEx has reported that they will increase shipping rates for FedEx Express by a net average of 3.9% for U.S. domestic and U.S. export services effective January 3, 2011. 

The full average rate increase of 5.9% will be partially offset by adjusting the fuel price threshold at which the fuel surcharge begins, reducing the fuel surcharge by two percentage points.

In addition, FedEx Express and FedEx Ground will implement a change to the dimensional weight volumetric divisor from 194 to 166 for U.S. domestic services. Details of dimensional weight charges and additional changes that will be made to other FedEx Express surcharges can be found at their website.


FedEx Freight and FedEx National LTL also will implement 6.9% general rate increases (GRI) effective Nov. 1, 2010. These rate increases apply to interstate and intrastate less-than-truckload (LTL) shipments, as well as shipments between the U.S. and Canada covered by the FXF 1000 and FXNL 501 Base Rates.

FedEx Freight's and FedEx National's fuel surcharge will remain unchanged and one of the lowest in the LTL industry. On average, the FedEx LTL companies' fuel surcharge is 4.5 to 6.5 percentage points below the next five largest LTL carriers. The new base rates, rules tariff and fuel surcharge information for the LTL companies will be available at FedEx?s website on Nov. 1, 2010.

"FedEx understands the needs of our customers and is focused on providing exceptional service," said T. Michael Glenn, FedEx executive vice president, Market Development and Corporate Communications. "This pricing adjustment will allow for key investments that will enable FedEx to continue to provide industry leading service and shipping solutions."

FedEx Corporation is a Delaware corporation, incorporated October 2, 1997. FDX Corporation was founded in January 1998 with the acquisition of Caliber System Inc. by Federal Express. With the purchase of Caliber, FedEx started offering other services besides express shipping.


Caliber subsidiaries included RPS, a small-package ground service; Roberts Express, an expedited shipping provider; Viking Freight, a regional, less-than-truckload freight carrier serving the Western United States; Caribbean Transportation Services, a provider of airfreight forwarding between the United States and the Caribbean; and Caliber Logistics and Caliber Technology, providers of logistics and technology solutions. FDX Corporation was founded to oversee all of the operations of those companies and its original air division, Federal Express.  

In January 2000, FDX Corporation changed its name to FedEx Corporation and re-branded all of its subsidiaries. Federal Express became FedEx Express, RPS became FedEx Ground, Roberts Express became FedEx Custom Critical, and Caliber Logistics and Caliber Technology were combined to make up FedEx Global Logistics. A new subsidiary called FedEx Corporate Services was formed to centralize the sales, marketing, customer service for all of the subsidiaries. In February 2000, FedEx acquired Tower Group International, an international logistics company. FedEx also acquired WorldTariff, a customs duty and tax information company, TowerGroup and WorldTariff were re-branded to form FedEx Trade Networks.  

FedEx Corp. acquired privately held Kinko's Inc. in February 2004 and rebranded it FedEx Kinko's. The acquisition was made to expand FedEx retail access to the general public. After the acquisition, all FedEx Kinko's locations exclusively offered only FedEx shipping.  

In June 2008, FedEx announced that they would be dropping the Kinko's name from their ship centers, with FedEx Kinko's changing to FedEx Office. In September 2004, FedEx acquired Parcel Direct, a parcel consolidator, and re-branded it FedEx SmartPost.


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