FedEx Corp. said late Monday that it will raise its noncontract, or tariff, rates by 5.9% for U.S. shipments moving under its Express, FedEx Ground, FedEx Home Delivery and FedEx Freight LTL services. The increases go into effect Jan. 3, the company said.
Rates on shipments moving under the FedEx Ground Economy service, which was rebranded from FedEx SmartPost after FedEx (NYSE:FDX) took in-house all of its last-mile deliveries once handled by the U.S. Postal Service, will also increase. FedEx didn’t specify the percentage, however.
In addition, FedEx will unveil on Jan. 3 an international service option to provide time-definite deliveries of one to three days.
Starting Jan. 17, the company will add several changes to its delivery surcharge table. Perhaps the most notable will be a new surcharge on all forward and returns deliveries using the FedEx Ground Economy service. In addition, FedEx will assess surcharges whenever a FedEx Freight driver makes a scheduled pickup but no shipment is waiting.
In a statement late Monday, FedEx said the surcharges will allow it to recoup additional costs associated with the “challenging” operating environment, and re-invest into its pickup and delivery capabilities.
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