FedEx will raise its ground shipping rates by an average of 4.9 percent starting January 7.
The increase matches a rate hike by its main rival, United Parcel Service, which said its rates for 2008 would rise by an average of 4.9 percent for ground shipments, air express and international parcels from the US.
FedEx's move also matches its 4.9 percent increase in ground shipping rates a year earlier.
In October, the Memphis-based shipping giant announced a 6.9 percent increase for air-shipping rates, also effective January 7. That was the biggest percentage jump in its rates in more than a decade. The new air-shipping rate hike will be partially offset by a two percentage-point cut in the surcharge levied on customers to pass on fuel costs.
Earlier this month, skyrocketing fuel costs and flat freight volumes forced FedEx to lower its profit forecast for the current quarter and the full year. That was the second cut in projected full-year earnings since September, when the company said the economic slowdown, continued weak US housing market and high energy prices would lower its results.
Vitran buys Las Vegas/LA Express for $12.6m
Vitran (VTNC) purchased Las Vegas/LA Express, an Ontario, California, retail supply chain management company, for up to $12.6 million in cash, including assumed debt of about $2 million and $4.35 million of contingent consideration based on performance.
Vitran, a Toronto transportation and logistics management provider, expects the deal to boost 2008 earnings by five to seven cents a share.
|
