FedEx Express, FedEx Ground and FedEx Freight, subsidiaries of FedEx Corp., will increase shipping rates effective January 2, 2017.
FedEx Express will increase shipping rates by an average of 3.9 percent 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 percent. FedEx SmartPost rates will also change.
FedEx Express and FedEx Ground U.S. domestic dimensional weight divisor will change from 166 to 139.
Effective February 6, 2017, FedEx Express and FedEx Ground fuel surcharges will be adjusted on a weekly basis. Currently, adjustments are made on a monthly basis with a two month lag between the U.S. government published fuel indexes and the fuel surcharges. Adjusting on a weekly basis will reduce lag time from two months to two weeks, thus providing a closer alignment between fuel costs and fuel surcharges at the time of shipment.
Details of all changes to rates and surcharges are available at http://fedex.com/rates2017
Editor's Insight: These rate increases were expected given that UPS announced an increase last week. The couriers are responding to the rising volume of e-commerce business. The transportation industry as a whole has to adjust to this change.
As noted last week, software providers have responded to the e-commerce expansion with a slew of systems to track carriers’ rates and assess delivery options. Transportation and logistics providers need to be up to speed on these innovations to maintain their service capabilities. 9-20-16 By Elliot Maras