FedEx Details Plans to Raise Rates Next Year
September 19 2016 - 6:06PM
Dow Jones News
By Tess Stynes
FedEx Corp. said its will raise shipping rates starting next
year, including an average increase of 3.9% at its air-shipping
Express division and 4.9% for its ground and home-delivery
services.
The shipping giant's plan comes after rival United Parcel
Service Inc. recently unveiled 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.
Memphis, Tenn.-based FedEx also expects to increase its spending
to accommodate growth in e-commerce and to update its aircraft
fleet, which were reflected in its June plans to raise capital
outlays for the current fiscal year by 6%.
Other planned changes unveiled by FedEx on Monday include
raising freight shipment rates by 4.9% and charging customers more
to ship large packages.
Starting in February, FedEx also will adjust its fuel surcharges
weekly instead of monthly, reducing the lag time between U.S.
government fuel index changes and its surcharge adjustments to two
weeks from two months.
FedEx plans to release its fiscal first-quarter results on
Tuesday.
Write to Tess Stynes at tess.stynes@wsj.com
(END) Dow Jones Newswires
September 19, 2016 17:51 ET (21:51 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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