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September 29, 2010 2:30 PM, EDT

FedEx to Boost LTL Rates 6.9%

ABF Also Hiking Rates by Average 5.9%
FedEx Corp.

FedEx Corp.’s less-than-truckload units will impose a 6.9% general rate increase effective Nov. 1, the company said Wednesday.

The hikes in FedEx Freight and FedEx National LTL rates apply to interstate and intrastate shipments, and on shipments between the U.S. and Canada covered by the company’s base rates.

Separately, LTL carrier ABF Freight System said this week it would also boost its rates by an average 5.9%, effective Friday. The impact on specific lanes and shipments will vary, ABF said on its website.

FedEx said its fuel surcharge “will remain unchanged and one of the lowest in the LTL industry.” The surcharge is 4.5% to 6.5% points below the next five largest LTL carriers, the company said in a statement.

FedEx Express also will raise its rates, by an average of 3.9%, for U.S. domestic and export services, effective Jan. 3, the company said.

The full average rate increase of 5.9% will be partially offset by adjusting the threshold at which the fuel surcharge begins, reducing it by 2%, the company said.

The new base rates, rules tariff and fuel surcharge information for the LTL units will be available at www.fedex.com/us/freight/main on Nov. 1.

FedEx Corp. is ranked No. 2 and ABF’s parent company Arkansas Best Corp. is ranked No. 16 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.