It’s an annual event as sure to happen as the leaves falling off the trees: less-than-truckload (LTL) carrier FedEx Freight, along with two other FedEx subsidiaries—FedEx Express and FedEx Ground—have announced plans to increase their shipping rates effective January 4, 2016. FedEx Freight will be increasing its shipping rates by an average of 4.9%.
The rate change for FedEx Freight applies to 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.
In January 2015, FedEx Freight similarly hiked shipping rates by 4.9%, which actually was the second such rate hike in 10 months, as the LTL carrier had also raised its rates by 3.9% on March 31, 2014.
FedEx Express will increase shipping rates by an average of 4.9% for U.S. domestic, U.S. export and U.S. import services.
FedEx Ground and FedEx Home Delivery will increase shipping rates by an average of 4.9%. FedEx SmartPost rates will also change.
FedEx is also increasing surcharges for shipments that exceed the published maximum dimensions (“unauthorized packages”) in the FedEx Ground network and updating certain fuel surcharge tables at FedEx Express and FedEx Ground effective November 2, 2015. Details of these changes will be available on fedex.com by September 23, 2015. Unauthorized packages that exceed the length or weight limitations of the FedEx Ground network are handled at the option of FedEx Ground. The changes related to fuel and unauthorized surcharges are in response to changing industry demand dynamics, including increases in average package size and weight and increased residential deliveries.
Typically, many of the other national LTL carriers announce similar rate hikes to keep pace with FedEx Freight; stay tuned for news of further rate updates as they occur.