FEDEX WILL ADD FUEL SURCHARGE
Federal Express, the air express subsidiary of Memphis-based FDX Corp., said it will implement a 3-percent fuel surcharge on most domestic and international parcel shipments starting Feb. 1.
FedEx also will levy a 10-cent per kilogram surcharge on heavyweight shipments moving under FedEx International Airport-to-Airport and International Express Freight services. Other leading international cargo carriers, including American Airlines, United Airlines, Northwest Airlines, KLM Royal Dutch Airlines, Alitalia, Air France, Cargolux and Swisscargo, also plan to impose fuel surcharges in February.
Following poor second quarter fiscal results, FedEx said it was considering a surcharge to offset a dramatic rise in jet fuel prices this year. The company said it was paying 83 cents a gallon for fuel in December compared to 51 cents a gallon last year.