FedEx Express will put up its rates for US domestic and US export express package and freightshipments by 3.5% net with effect from January 1, 2007. The net average shipping rate increase is
composed of a 5.5% average increase in standard list rates, offset by a 2.0 percentage pointreduction in the fuel surcharge.FedEx said that the fuel surcharge will also be levied on some transportation-basedsurcharges such as Residential and Delivery Area surcharge for all domestic shipments andfor those US export and US import FedEx Express shipments paid by US payers. Additional changeswill be made to other FedEx Express surcharges effective Jan. 1, 2007. The details of thesesurcharges will be available on fedex.com by Nov. 10, 2006.
FedEx Ground rates will also increase for 2007 but the changes will not be announced untillater this year, the company said. In addition, FedEx will introduce a new dimensional weightsystem for oversized, large FedEx Ground shipments from February 5, 2007. If the dimensional weightis greater than the actual weight, dimensional weight will apply to FedEx Ground shipments that arethree cubic feet (5,184 cubic inches) or greater.
“These rate adjustments from FedEx Express and FedEx Ground allow us to enhance ouroperations and services so we can continue to deliver a superior customer experience,” said T.Michael Glenn, FedEx executive vice president, Market Development and Corporate Communications.
