FedEx announces 2010 ground, home delivery rate increase
FedEx announced December 3 that it will increase standard rates for FedEx Ground and FedEx Home Delivery by an average of 4.9% next year. The rate changes take effect January 4, 2010.
The shipper previously announced that it will raise shipping rates for FedEx Express by an average of 5.9% for US domestic and US export services, effective next month.
FedEx saw its fiscal 2010 first quarter earnings fall 53%. The shipper disclosed quarterly earnings of $181 million, compared to $384 million a year ago.
Rival UPS announced November 20 that its 2010 shipping rates will increase by an average of 4.9% for UPS Ground packages and consumers will see an average net increase of 4.9% for air express and US origin international shipments. Those rate changes also go into effect on January 4, 2010.
UPS on October 22 announced revenues of $11.2 billion for this year's third quarter, a year-over-year decline of 14.9% from last year's $13.1 billion.
The US Postal Service, which recently concluded a fiscal year 2009 when it ran a $3.8 billion net loss, announced recently that it will not raise rates for 2010 on its “market dominant” products, a category that includes services largely used by direct mailers and publishers. However, it also disclosed a mix of increases and rate cuts on other services for next year.