FedEx Sets '06 Rate Increases for Express Shipments

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edEx Corp. Wednesday said that its FedEx Express unit will raise its rates 3.5% starting Jan. 2, 2006.

The rate hike will comprise a 5.5% average increase in standard list rates, which will be offset by a 2% reduction in its fuel surcharge. It will apply to domestic and export express package and freight shipments, the company said in a statement.

FedEx also announced that on Nov. 7, it will roll out new retail rates for FedEx Express and FedEx Ground services at drop-off counters in staffed U.S. locations.

FedEx said that effective Jan. 2, it will increase delivery area surcharges by up to 10 cents per package in select ZIP codes. The new delivery area surcharge for residential locations will be $2.10 per package, and a new surcharge for commercial locations will be $1.30 per package.

The 2006 FedEx Express rates and adjusted fuel-surcharge index will be available to customers on the company’s Web site starting Dec. 3. The FedEx Ground list rates will be announced later this year, the companys said.

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