FedEx plans rate increases

FedEx plans rate increases    FedEx Corp., following the lead of rival integrator UPS, said rates for Express and Ground deliveries would increase next year on average 2.5 percent and 1.9 percent, respectively.
   UPS announced last month that it was raising the price for air express service 2.9 percent on average, while the average ground commercial shipment would increase 1.9 percent.
   The new rates for both companies go into effect Jan. 5. UPS and FedEx Express are scheduled to post details on their Web sites about their pricing structure Dec. 5. FedEx Ground list rates will be available beginning Dec. 15.
   Several other FedEx price changes mirror those made by UPS, including:
   * The elimination of fuel surcharges for ground shipments. Surcharges will remain for air shipments via FedEx Express.
   * Addition of a $1 delivery surcharge for commercial shipments by FedEx Ground to remote ZIP codes. The $1.75 residential surcharge for select ZIP codes remains unchanged at $1.75.
   * A surcharge increase for residential delivery from $1.40 to $1.75 per package for both FedEx Express and FedEx Ground shipments.
   * An increase in the surcharge for residential delivery of FedEx Home Delivery shipments from $1.15 to $1.40 per package.
   Other changes made by FedEx include offering FedEx Express Freight service with Saturday delivery to select U.S. destinations for an additional charge of $100 per shipment. FedEx domestic freight, U.S.-to-Puerto Rico and FedEx International Premium services list rates will also increase.
   Effective Jan. 26, FedEx will:
   * Decrease the remote ZIP code surcharge for commercial deliveries via FedEx Express from $1.75 to $1.
   * Apply a delivery surcharge of $15 per package to express shipments bound for remote areas in Alaska.
   * Introduce a new oversize package category for FedEx Express domestic packages and FedEx Ground packages.
   * Apply dimensional weight pricing for packages smaller than one cubic foot of volume for U.S. and Puerto Rico express shipments.