FedEx Corp.’s less than truckload (LTL) subsidiary is raising its rates by 5.95%. The increase pertains only to FedEx Freight and not to FedEx Express or FedEx Ground. The carrier will also heighten costs in other areas, including a minimum and accessorial charges and adjustments in selected lanes.
Increases will be applied to interstate and intrastate traffic and to some shipments between the U.S. and Canada and Mexico. Factors cited by the company for the rate increase include higher highway tolls and access fees as will as costs associated with the need to buy expensive, more environmentally friendly equipment to meet new standards. Too, FedEx Freight points to services – like a no-fee, money-back guarantee – that are components of its fast-cycle logistics offerings. The rate increase goes into effect on April 24, with all details at the carrier web site, www.fedex.com/us/freight/main after that date.
Effective April 17 is a base rate increase of 4.5% for Old Dominion Freight Line, Inc. The increases in rates and minimum charges are based on length of haul rather than a more traditional across the board boost in rates. The carrier says that generally the shorter the haul, the lower the effects of the increase.