FedEx to Implement Fuel Surcharge

FDX Corp. announced today that it will apply a 3% fuel surcharge on most FedEx domestic and international services, effective Feb. 1, 2000.

The company will apply a surcharge of $.10 per kilo to FedEx International Airport-to-Airport and FedEx International Express Freight shipments, also effective Feb. 1. FDX says the surcharge will apply to all domestic shipments and some U.S. export shipments.

"We have held off on this decision in order to assist our customers in getting through their very important peak shipping season," said Executive Vice President Alan B. Graf, Jr., in a statement. "Fuel costs remain high. In order to continue to provide the unmatched service and reliability which FedEx customers rely upon, the price of our services must appropriately reflect our increased costs."

Rising fuel prices have eaten away at FDX's profits this year. The company posted second-quarter profits of $171 milion, a $12 million drop from last year's secnond-quarter performance ("Fuel Eats into FedEx Profit," Dec. 16).