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FedEx Ground to increase 2007 rates by 4.9 percent
POSTED: 10:23 a.m. EDT, January 15,2007

FedEx Corp. announced today that it will increase the standard list rates for FedEx Ground and FedEx Home Delivery by an average of 4.9 percent, effective Jan. 1, 2007.

The rate increase is in addition to other changes to FedEx Express, FedEx Ground, and FedEx Home Delivery surcharges. Other changes include an adjustment to the fuel surcharge for FedEx Ground shipments, which will be assessed on additional applicable transportation-related surcharges.

FedEx Corp. previously announced an increase to the net average shipping costs for FedEx Express by 3.5 percent, which is composed of a 5.5 percent average increase in standard list rates, offset by a 2.0 percent point reduction in its fuel surcharge. These rates are also effective Jan. 1, 2007 and apply to U.S. domestic and U.S. export packages and freight.

UPS and DHL have also announced rate increases. UPS¡¯ new rates are comprised of an average 4.9 percent increase for ground shipments and a net average increase of 4.9 percent for all air express and U.S. origin International shipments. DHL¡¯s new rates, which will be effective on Jan.1, 2007, include a 3.9 percent increase in the net average shipping rate for DHL Domestic Air Express and International Express and an average increase of 4.9 percent for DHL Ground shipments and for DHL@home.

FedEx also announced a new dimensional weight system for oversized, large FedEx Ground shipments. If the dimensional weight is greater than the actual weight, dimensional weight will apply to FedEx Ground shipments that are three cubic feet (5,184 cubic inches) or greater. This will be effective Feb. 5, 2007.

From: FedEx
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