FedEx Shipping Costs to Rise in 2005

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FedEx will increase its shipping rates effective Jan. 3, 2005.


The Memphis, TN, overnight package shipper said Nov. 5 that the cost of its FedEx Express service will rise 2.6 percent. This includes a 4.6 percent increase in package and freight costs and a 2 percent decrease in its fuel surcharge.


Currently, a 0.5 percent fuel surcharge is triggered when the price of a gallon of kerosene-type jet fuel hits 52 cents, and rises 0.5 percentage points each time that price increases 4 cents above 54 cents. The company will raise the trigger price for the surcharge to 66 cents.


Standard list rates for FedEx Ground and FedEx Home Delivery also will increase an average of 2.9 percent. Also, FedEx Ground will introduce an indexed fuel surcharge for U.S. and international FedEx Ground shipments.


Other changes effective Jan. 3:


* Delivery area surcharges assessed for FedEx Express shipments destined for locations in select ZIP codes will increase by 25 cents per package. The new delivery area surcharge for residential locations will be $2 per package. For commercial locations it will be $1.25 per package.


* Delivery area surcharges assessed for FedEx Ground shipments destined for locations in select ZIP codes also will rise 25 cents per package. The new surcharge for residential locations will be $2 per package. For commercial locations it will be $1.25 per package.


* The surcharge for residential delivery will increase from $1.75 to $2 per package for FedEx Express shipments, from $1.75 to $2 per package for FedEx Ground shipments and from $1.40 to $1.50 per package for FedEx Home Delivery shipments.


* For FedEx Ground shipments, the charges for declared value exceeding $100 will increase from 35 cents to 40 cents per $100, and the maximum declared value for a ground package will rise from $25,000 to $50,000 per package. A minimum charge of $1.20 will be implemented for packages with a declared value of $100 to $300.


Rates for shipments to Puerto Rico are also increasing.


Further information is available at fedex.com/us/2005rates.


The 2005 FedEx Express list rates will be available to customers on fedex.com beginning Dec. 3. FedEx Ground list rates will be available on fedex.com beginning Dec. 15.


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