FedEx Ground, the small-package ground delivery subsidiary of FedEx Corp., Memphis, TN, said yesterday that it would apply a 1.25 percent fuel surcharge on all ground services effective Aug. 7.
The temporary surcharge will be added to all basic ground rates in the United States, Canada and Mexico.
While FedEx Express, the express transportation division of FedEx Corp., added a 3 percent fuel surcharge to its express services in February — and increased it to 4 percent in April — FedEx Ground had withheld a surcharge until now.
“Despite months of continually high fuel costs, we have avoided adding a fuel surcharge to our services,” said Daniel J. Sullivan, president/CEO, FedEx Ground. “However, to continue providing our customers with FedEx Ground's unmatched service — particularly as we approach peak shipping season — the price of our services must reflect our increased costs.”
Earlier this month, United Parcel Service, Atlanta, the world's largest package delivery company and FedEx Ground's main competitor, also said it would implement a temporary 1.25 percent fuel surcharge on packages effective Aug. 7.
FedEx Ground is the second-largest small-package ground carrier in North America. The company recorded annual revenue of more than $2 billion in fiscal year 2000.