Just two months after raising less-than-truckload (LTL) shipping rates by an average of 3.9%, national LTL carrier FedEx Freight has announced another price hike, this time raising the fuel surcharge it passes on to customers. FedEx Freight, a subsidiary of FedEx Corp., will increase its published fuel surcharge indices by 3 percentage points effective June 2, 2014.
FedEx Freight updates its fuel surcharges for the U.S. and Canada every week based on published average diesel fuel prices. These changes apply to all FedEx Freight shipments governed by the FXF 100 series rules tariff, including applicable FedEx Freight shipments within the contiguous U.S.; between the contiguous U.S. and Alaska, Hawaii, Puerto Rico, the U.S. Virgin Islands and Canada; and within Canada.
Also, FedEx Ground, another subsidiary that offers small-package ground shipping, has announced it will apply dimensional weight pricing to all shipments, effective January 1, 2015. Currently, FedEx Ground applies dimensional weight pricing only to packages measuring three cubic feet or greater. This change will align the FedEx Ground dimensional weight pricing with FedEx Express by applying it to all packages. Dimensional weight pricing sets the transportation price based on package volume—the amount of space a package occupies in relation to its actual weight.