FedEx and UPS boost shipping rates
By Doreen V. Bentley, BuyerZone.com Content Writer
January 24, 2001
You may be one of millions who will have to shell out a few more bucks for shipping.
FedEx Corp. recently announced that its subsidiary, FedEx Express, would increase air-delivery
rates by 4.9 percent for shipments within the United States, effective Feb 1.
"This rate adjustment ensures that FedEx Express will continue to provide the outstanding
service and value, backed by the user-friendly technology, that customers expect from
FedEx," said T. Michael Glenn, FedEx executive vice president of market development and
corporate communications, in a press release.
Even if you're not a FedEx customer, you might not be in the clear. Following on the
heels of this announcement, the United Parcel Service also announced air express rate
increases of 3.7 percent and commercial ground services increases of 3.1 percent across
all weights and zones, effective Feb 5.
But these rate adjustments affect only those who pay the so-called "list rate." If
you're under contract with one of these shipping giants, then you can breathe a little
easier because these changes won't affect you until your current contract expires and
it's time to renegotiate.
Recent hikes in oil and fuel prices have been cited as possible triggers for the increase.
The increases have also been attributed to the sluggish economy and flat levels of shipping
activity over the past few months.
This is FedEx's first rate increase since they imposed a 4 percent fuel surcharge back
in 1999. UPS says its 1.25 percent fuel surcharge will remain intact for now.