FedEx Ground to Increase Rates 3.9% in 2006

edEx Corp. announced it will raise the standard rates for FedEx Ground services next year by an average of 3.9%.

The changes are in addition to other changes to FedEx Express, FedEx Ground and FedEx Home Delivery surcharges, and will take effect on Jan. 2, 2006, the company said in a statement.

FedEx Corp. in October had announced increases in FedEx Express rates by 3.5% — a 5.5% increase offset by a 2% point reduction in its fuel surcharge. (Click here for previous coverage.)

"These rate adjustments allow FedEx Express and FedEx Ground to continue to improve service levels and expand their networks," said T. Michael Glenn, executive vice president of market development.

The company also announced that:

• The delivery area surcharge for select ZIP codes will increase by 5 cents per package for commercial locations and 10 cents per package for residential locations for FedEx Express and FedEx Ground.

• A residential surcharge increase for FedEx Express and FedEx Ground shipments of 10 cents per package and a residential surcharge increase for FedEx Home Delivery of 25 cents per package.

• An increase in the charge for direct signature required of 25 cents a package and an increase in the adult signature required charge of 50 cents per package for FedEx Express and FedEx Ground shipments.

• The additional handling surcharge for FedEx Express and FedEx Ground shipments will increase $1.00 per package.

• The FedEx Express and FedEx Ground collect on delivery charge (C.O.D.) as well as the FedEx Ground electronic collect on delivery charge (E.C.O.D.) will increase by $1.00 per package.

• There will be no changes to most FedEx(R) Retail Counter Rates for FedEx Express and FedEx Ground shipments.

FedEx Corp. is ranked No. 2 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.