FedEx Express to Increase Net Average Shipping Rate

By: Bubbajunk.com

MEMPHIS, Tenn.--(BUSINESS WIRE)--Oct. 5, 2005--FedEx Corp. (NYSE:FDX) today announced that it will increase the net average shipping costs for FedEx Express by 3.5 percent, which comprises a 5.5 percent average increase in standard list rates, offset by a 2.0 percentage point reduction in its fuel surcharge. The new rates will be effective Jan. 2, 2006, and apply to U.S. domestic and U.S. export express package and freight shipments.

FedEx also announced that on Nov. 7, 2005, it will roll out new retail counter rates for FedEx Express and FedEx Ground services at drop-off counters in staffed FedEx locations across the U.S.

"This reflects our continued commitment to invest in our business in order to meet and exceed new customer expectations," said T. Michael Glenn, FedEx executive vice president, Market Development and Corporate Communications. "Enhancing our operations and services gives our customers greater ability to better manage their supply chains and improve their competitiveness."

Other rate changes effective Jan. 2, 2006:

-- Delivery area surcharges assessed for FedEx Express shipments destined for locations in select ZIP codes will increase by up to 10 cents per package. The new delivery area surcharge for residential locations will be $2.10 per package. The new surcharge for commercial locations will be $1.30 per package.

-- The surcharge for residential delivery will increase from $2 to $2.10 per package for FedEx Express shipments.

The 2006 FedEx Express list rates and adjusted fuel surcharge index will be available to customers on beginning Dec. 3, 2005. Changes to FedEx Ground standard list rates will be announced later in 2005.

The new FedEx Retail Counter Rates will apply when customers ship without a FedEx account in all FedEx Kinko's Office and Print Centers, FedEx Kinko's(SM) Ship Centers and staffed FedEx locations across the U.S.

Staffed FedEx locations provide more personalized services and their counter staff assist with shipping service recommendations, shipping detail verification, delivery time confirmation and packing. Many FedEx Kinko's locations are open 24 hours a day, seven days a week.

FedEx Retail Counter Rates will not apply when customers use drop-boxes at FedEx staffed locations. Customers who ship at the counter in FedEx staffed locations must use their FedEx account numbers to receive their FedEx account specific rates.