NOV. 3 10:36 A.M. ET Package shipper FedEx Corp. on Friday said it will raise express shipping rates by 3.5 percent on Jan. 1.
The rate increase includes a 5.5 percent hike in standard list rates, offset by a 2 percent reduction in fuel surcharges. It will apply to U.S. domestic and U.S. export express package and freight shipments.
The company said it also plans to add a fuel surcharge to some transportation-based surcharges, such as Residential and Delivery Area, and to those U.S. export and U.S. import FedEx Express shipments paid for by U.S. customers.
Further surcharge changes for 2007 will be released on Nov. 10, the company said.
In addition, FedEx will add a new dimensional weight system for oversized FedEx Ground shipments, effective Feb. 7.
The company plans to announce higher FedEx Ground rates for 2007 before the end of this year.
Shares of FedEx rose 65 cents to $112.74 in morning trading on the New York Stock Exchange.
Source: Associated Press