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FedEx Express to Increase U.S. Prices 5.9%

On September 18th, 2012, FedEx Express announced that they will increase prices for U.S. services by a net average of 3.9%. The full average rate increase will be 5.9%, but this will be partially reduced by a change to the company’s fuel surcharges. Specifically, the threshold at which fuel surcharges begin will be increased, effectively reducing the surcharge by 2 percentage points.

Changes will be made to FedEx Express rates in the U.S., as well as Puerto Rico and FedEx International Premium rates.

Fighting a shift to a more economical service

During the report of its financial results for the first quarter, FedEx Corp pointed out that FedEx Express has been suffering from a shift of volumes into FedEx Ground as a result of a slow U.S. economy.

When we looked into their actual rates, the old adage of “the devil is always in the details” is true. Rates for specific services range from 3% to more than 10%, with rate increases generally lower on premium services and higher on more economical services as FedEx looks to stem some of the shift of its customers towards more economy options.

Among FedEx Express surcharges, address correction rates will increase by about 9%; declared value charges for items around $100 in value will increase 6.25%; delivery area surcharges for residential shipments will rise 8.3%; commercial shipments will rise 7.5% and residential delivery charges will rise 6.6%.

FedEx said pricing changes for FedEx Ground and FedEx SmartPost for 2013 will be announced later this year.

FedEx Freight adopted a 6.9% rate increase on July 9th, 2012.

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