FedEx has unveiled plans to increase express, ground and freight rates in the USA next January, including a lower rise than UPS for express shipments, and will also speed up fuel surcharge changes from a monthly to a weekly basis.
With effect from January 2, 2017, FedEx Express will increase its shipping rates by an average of 3.9% for US domestic, US export and US import services.
FedEx Ground and FedEx Home Delivery will increase their shipping rates by an average of 4.9%, while FedEx SmartPost rates will also change.
Effective January 2, 2017, the FedEx Express and FedEx Ground US domestic dimensional weight divisor will change from 166 to 139.
From February 6, 2017, FedEx Express and FedEx Ground fuel surcharges will be adjusted on a weekly basis. Currently, adjustments are made on a monthly basis with a two-month lag between the fuel indexes and the fuel surcharges published by the US government.
“Adjusting on a weekly basis will reduce lag time from two months to two weeks, thus providing a closer alignment between fuel costs and fuel surcharges at the time of shipment,” FedEx explained.
The FedEx SameDay City pricing changes for calendar 2017 will be announced later this year.
FedEx Freight will also increase shipping rates by an average of 4.9%. This rate change applies to eligible FedEx Freight shipments within the U.S. (including Alaska, Hawaii, Puerto Rico and the U.S. Virgin Islands), between the contiguous U.S. and Canada, within Canada, between the contiguous U.S. and Mexico, and within Mexico.
Effective January 2, 2017, the FedEx Freight Extreme Length surcharge will change from $85 to $150 and will be applied to shipments with dimensions of 12 feet or greater versus the prior 15 feet.
FedEx Retail rates, FedEx One Rate pricing and the dimensional weight calculation for FedEx Express and FedEx Ground packages will also change.
Earlier this month, UPS also announced price increases for ground, air and international shipments in the USA for 2017, which is similar to the increase for this year. Effective December 26, 2016, the UPS U.S. Ground service Daily rate will increase by an average net 4.9%, while Daily rates for UPS U.S. Air and International services will increase an average net 4.9%.
In addition, UPS Air Freight rates within and between the U.S., Canada and Puerto Rico, will increase an average net 4.9%, also effective December 26, 2016. Further, UPS Freight, the US freight trucking business, announced an average net 4.9% general rate increase effective September 19, 2016.
Explaining the reasons for the annual increase, the company commented: “UPS continues to make investments in the speed, scope and coverage of our transportation network. Rate increases will support ongoing expansion and capabilities enhancements, while UPS strives to maintain the high service levels customers expect.”
