September 22, 2016 1:50 PM, EDT

FedEx Announces Price Increases for 2017

John Sommers II for TT

FedEx Corp. announced a series of 2017 rate increases, including 3.9% for Express shipments and 4.9% for Ground, continuing the recent pattern of carrier price adjustments.

The increase at Express was 1 percentage point less than an earlier announcement by UPS Inc., which included 4.9% higher prices for Ground, International and Freight services. Higher rates at FedEx Ground also will apply to FedEx Home Delivery.

In addition to FedEx and UPS, several less-than-truckload carriers have announced higher rates. Those increases on tariff moves began to take effect late last month.

FedEx Freight rates are being increased 4.9% as well.

The new FedEx rates are effective Jan. 2.

Also, FedEx announced plans to make weekly instead of monthly fuel surcharge adjustments as of Feb. 6 in order to provide “a closer alignment between fuel costs and fuel surcharges at the time of shipment.”

The dimensional pricing formula for packages also is being changed, resulting in an increase, effective Jan. 2. In addition, the surcharge for shipments 12 feet or greater will be $150. The current surcharge is $80 for shipments 15 feet or longer.

FedEx and UPS have been adjusting dimensional and outsize shipment rates in recent years as e-commerce results in shipments of larger products.

Price adjustments also will be made for FedEx SmartPost, though no details were given by the company that ranks No. 2 on Transport Topics Top 100 list of the largest U.S. and Canadian for-hire carriers. UPS tops the list.