FedEx Express to Provide Later Service

Beginning Feb. 26, FedEx Express will offer later times for shipping packages in the United States, Europe and Toronto, a move that will use more trucks and possibly increase sorting activity at its Indianapolis hub.

FedEx Extra Hours will allow certain customers to extend their business day by up to three hours in many major markets, the Memphis-based parcel carrier announced Tuesday. New York City and Atlanta customers will have until 11:30 p.m. Minneapolis customers will have until 10:30, and Los Angeles until 8:00 p.m.

All FedEx Extra Hours shipments will be assessed a $15.00 premium above FedEx Priority Overnight and FedEx International Priority rates.

FedEx Extra Hours shipments will move through the existing FedEx network but on a different sort cycle. All packages will be sorted at the Indianapolis hub, and the operations will run approximately two hours later than the regular system.

FedEx will use existing equipment and resources to handle these later shipments. Some additional trucks also will be used.

While there will be nominal start-up expenses incurred in the fourth quarter, FedEx (FDX) said it had already factored those costs into its guidance for the next several quarters. The company expects earnings of 35 cents to 40 cents per share in its 2001 third quarter, 90 cents to $1 in in the fourth quarter and $2.50 to $2.65 a share for the full fiscal year.