FedEx Freight to raise rates 6.8% in North America
FedEx Freight is to increase its rates for shipments within the United States and Canada by 6.75% from September 6. The company said today the rate increases apply to freight shipments traveling within the US and Canada, as well as cross-border shipments traveling between the two countries, and also for US shipments to Mexico.
Rate increases apply to shipments covered by the FXF 1000 and FXF 501 series base rates.
FedEx said its Freight fuel surcharge will remain unchanged, and that its fuel surcharges were “at least 22 percent lower than the next six largest LTL carriers”.
FedEx Freight has been struggling in recent years, although a merger with the company’s National LTL unit earlier this year and actions to trim unprofitable accounts have returned the division to profitability, turning around a $36m loss in last year’s fourth quarter into a $42m income in this year’s final quarter.
Company spokesman Brian Anderson told <em>Post&Parcel</em> it had been a combination of factors affecting operating costs, including the state of the economy and the LTL market, that had led to the decision to raise shipping rates.
“FedEx Freight does not look at rate increases as the only way to adjust to higher costs,” he insisted. “We continue to realise efficiency improvements with our products and equipment and enhance productivity.”
Next month’s 6.75% increase in FedEx Freight prices comes just a few weeks after rival UPS raised its freight rates in North America by 6.9%. UPS Freight’s new rates for non-contractual shipments took effect August 1, 2011.
For FedEx Ground and Home Delivery shipping rates, the company imposed a 5.9% rate increase from January 3, 2011, that came with a 1% drop in fuel surcharges.