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FedEx Follows UPS in Raising Rates

November 21, 2001

MEMPHIS, Tenn. (AP) _ FedEx Corp. said Tuesday it will raise its rates for air and ground package shipments about 3.5 percent next year.

The increase, effective Jan. 7, follows an announcement earlier this month by FedEx’s chief rival, United Parcel Service Inc., that its ground shipping rates would go up by 3.5 percent on that date. Atlanta-based UPS also is increasing overnight and two-day express services by 4 percent.

FedEx Express, the Memphis-based company’s air cargo subsidiary, will raise rates about 3.5 percent for shipments within the U.S. and to other countries. That includes a $1.35 per-package charge for non-freight shipments within the United States to private homes, an increase in courier pickup charges from $3 to $4 and an adjustment to special handling fees for dangerous goods.

The fuel surcharge for Express shipments, which is indexed to monthly jet fuel prices, will drop from 3 percent to 2 percent for December. FedEx will continue a 1.25 percent fuel surcharge on ground shipments, duplicating a similar move by UPS.

FedEx Ground will increase rates an average of 3.5 percent, including nickel increases in residential delivery surcharges. FedEx Ground, which typically handles business-to-business deliveries but can include homes, will be $1.35. The price of FedEx Home Delivery will be $1.10 per package.

UPS also is increasing its fees for residential deliveries by a nickel to $1.10.

Shares of FedEx fell 89 cents to close at $45.37 in trading Tuesday on the New York Stock Exchange, where shares of UPS fell 8 cents to close at $54.51.

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On the Net:

FedEx: http://www.fedex.com

United Parcel Service: http://www.ups.com

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