FedEx Announces Rate Hikes, Changes Fuel Surcharge
The Memphis, Tenn., company said it would increase rates at its FedEx Express jet-based parcel delivery unit by 4.6% for U.S. domestic and export delivery services. At the same time, the company said it would lower its fuel surcharge by 2%, “resulting in a net average shipping cost increase of 2.6%.”
The company said it had been operating with a “dynamic fuel surcharge” in 2001 and the adjustment downward brings the charge “more in the line with the new environment.” Currently a 0.5% surcharge is added when jet fuel prices hits 52 cents a gallon and rises another 0.5% each time the price increases 4 cents over 54 cents a gallon. An average of three major spot prices for jet fuel was $1.57.
The company also said its standard rates for FedEx Ground and FedEx Home Delivery services would increase 2.9%. FedEx Ground would also move to an indexed fuel surcharge similar to the one used by FedEx Express.
