May 24, 2004 8:45 AM, EDT

FedEx Freight to Raise Rates 5.9%

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ess-than-truckload carrier FedEx Freight said Monday it would implement a 5.9% general rate increase effective June 14.

The company said in a statement the increase would apply to interstate and intrastate traffic, and selected shipments between the United States and Mexico and Canada.

FedEx Freight a unit of FedEx Corp, which is FedEx is ranked No. 2 on the Transport Topics 100 list of the largest U.S. and Canadian trucking companies.

Ther company said the increase was needed to cover rising health care costs, insurance premiums and liability requirements.

In addition, FedEx said new government-compliant engines are more expensive to operate than older ones.

Last week, LTL carrier ABF Freight System Inc. also said it would raise its general freight rates by 5.9% on June 14.