FedEx Says It Will Increase Shipping Rates
FedEx Corporation has recently announced that it shall be increasing its shipping rates across all its services, including FedEx Express, FedEx Ground and FedEx Freight. The new rates will be made effective on Jan 4, 2016. Rate changes are also expected FedEx Ground Multiweight and FedEx SmartPost services.
According to the company, the increase comes as FedEx periodically evaluates its shipping rates, surcharges and fees with respect to fuel prices as well as the cost of maintenance of equipment and vehicles. In this regard, FedEx Express will see an average increase of 4.9% on U.S. domestic, U.S. export and U.S. import services. Meanwhile, both FedEx Ground and FedEx Home delivery are also expected to see an average shipping rate increase of 4.9%. Moreover, the same average shipping rate increase is also expected for FedEx Freight shipments within the U.S. (including Hawaii, Alaska, U.S. Virgin Islands and Puerto Rico) and Mexico as well as shipments to and from Canada and Mexico.
At the same time, FedEx also says that is shall also be increasing surcharges for “unauthorized packages” for FedEx Ground. The updated fuel surcharge tables for FedEx Express and FedEx Ground will become effective on Nov 2, 2015. Moreover, further information about this will also be made available by Sept 23.
According to the company’s Roadshow presentation last August, it is hoped that FedEx Express will achieve an annual profit of $1.6 billion by the end of fiscal year 2016. Moreover, significant cost savings are also expected as more Boeing 767 aircrafts shall be delivered to the shipping company through the said fiscal year.
FedEx Corporation’s projected capital spending for fiscal 2016 is around $4.6 billion. This will cover the expected aircraft deliveries as part of the FedEx Express fleet modernization program and the expansion of the FedEx Ground network.