, Sept. 6, 2005... FedEx Freight, a subsidiary of FedEx Corp. [NYSE: FDX], will limit its standard fuel surcharge in order to benefit customers hit by extremely volatile fuel prices in the aftermath of Hurricane Katrina. The company's fuel surcharge, which is updated weekly, will not exceed the most current pre-hurricane levels for the next 30 days.
"In our industry, the fuel surcharge is designed to manage normal supply and demand market forces of fuel, not temporary spikes caused by disasters," said Douglas G. Duncan, president and CEO of FedEx Freight.
In addition to a fuel surcharge, FedEx Freight is taking proactive steps to address rising fuel costs. The company operates one of the newest fleets in the industry and works with engine manufacturers, the EPA and the Department of Transportation to find new solutions that balance efficiency and productivity.
"We take our responsibility to maximize fuel efficiency very seriously," said
FedEx has adopted a fuel surcharge calculation method for FedEx Express, FedEx Ground and FedEx Freight services based on the fuel prices published by the U.S. Department of Energy. The limit on the FedEx Freight fuel surcharge does not apply to the surcharges in place for FedEx Express and FedEx Ground.
About FedEx Freight
Within FedEx Corp., the FedEx Freight Segment had annual revenues of $3.2 billion in fiscal year 2005. The Segment includes FedEx Freight, a leading