A day ahead of its earnings report, FedEx Corp. says its will raise its shipping rates effective Jan. 2, including an average increase of 3.9% for U.S. domestic, U.S. export and U.S. import services, and an average of 4.9% for its ground and home delivery services.
The shipping giant’s plan comes after rival United Parcel Service Inc. also reported an average rate increase of 4.9% to help pay for system upgrades and expansion.
Higher rates at UPS’s freight division were set to take effect Monday, with increases across its other services targeted for Dec. 26.
Read: FedEx follows lead of UPS, announces 2017 rate increases
Effective January 2, 2017, the FedEx Express and FedEx Ground U.S. domestic dimensional weight divisor will change from 166 to 139.
Effective February 6, 2017, FedEx Express and FedEx Ground fuel surcharges will be adjusted on a weekly basis. Currently, adjustments are made on a monthly basis with a two month lag between the U.S. Government published fuel indexes and the fuel surcharges.
Adjusting on a weekly basis will reduce lag time from two months to two weeks, thus providing a closer alignment between fuel costs and fuel surcharges at the time of shipment.
The FedEx SameDay City pricing changes for calendar 2017 will be announced later this year.
FedEx Freight will increase shipping rates by an average of 4.9%. This rate change applies to eligible FedEx Freight shipments within the U.S. (including Alaska, Hawaii, Puerto Rico and the U.S. Virgin Islands), between the contiguous U.S. and Canada, within Canada, between the contiguous U.S. and Mexico, and within Mexico.
Effective January 2, 2017, the FedEx Freight Extreme Length surcharge will change from $85 to $150 and will be applied to shipments with dimensions of 12 feet or greater versus the prior 15 feet.
Details to rates and surcharges are available at: FedEx Shipping Rates
Related: UPS Announces U.S. Rate Increases
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