FedEx plans 3.9 percent price increase for ground shipping

MEMPHIS, Tenn. Copyright 2005 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. — FedEx Corp. plans to increase ground and home delivery shipping rates by an average of 3.9 percent starting next year, on top of a previously announced boost in rates for air and overnight shipping.

The Memphis-based company said in October it was raising overall rates for its overnight FedEx Express customers 5.5 percent but cutting by 2 percentage points the fuel surcharge applied when oil prices are high.

All the rate increases go into effect Jan. 2.

The company already began charging higher rates for customers who don’t have a FedEx Express or FedEx Ground account and ship packages through staffed FedEx locations, including the copy chain Kinko’s.

There are no planned increases for retail counter rates otherwise, the company said Friday.

“These rate adjustments allow FedEx Express and FedEx Ground to continue to improve service levels and expand their networks,” said T. Michael Glenn, executive vice president of market development and corporate communications.

Other changes for FedEx Express and FedEx Ground shipping include:

— Delivery charges for select ZIP codes will increase by 5 cents per package for commercial locations and 10 cents for residential locations.

— A 25 cent per package increase for FedEx Home Delivery.

— A 25 cent per package increase when requiring direct signature and 50 cents per package for adult signature.

— Packages requiring additional handling will cost $1 more per package.

— Surcharges for COD and ECOD (electronic COD) will increase by $1 per package.

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