FedEx Freight to increase rates in North America by 6.9%
FedEx Freight is set to increase its shipping rates within North America by 6.9% from 9th July, 2012. The Memphis-based company announced on Friday that the rate change would apply to shipments within the continental United States and Canada, across the US-Canada border, and also for shipments between the US and Mexico.
The rate change affects shipments covered by the FXF 1000, FXF 501 and other related series base rates.
Other changes will also be made to absolute minimum charges and accessorial rates, the company said, although it said the FedEx Freight fuel surcharge will remain unchanged.
FedEx Freight said its fuel surcharge was “one of the lowest in the LTL industry”, with published rates of six rival LTL carriers “at least 23% higher”.
FedEx changed its shipping rates for FedEx Express and FedEx Ground back in January 2012.
FedEx Freight saw its revenues grow by 14% last year compared to 2010, or by $590m as the company returned to profitability in the final quarter after being merged with the FedEx National LTL business in January. The unit’s operating income fell by $22m year-on-year with a $133m cost of the merger.
Average daily shipments have risen from a low of 74,400 in 2009 to 86,000 in 2011.
FedEx Freight has recently launched a new classification tool within its Freight Central website, which helps customers identify the freight class and classification number for their shipments.
