FedEx Freight Boosts Rates 5.6 Percent

FedEx Freight, the LTL subsidiary of FedEx Corp., will implement a 5.6 percent general rate increase effective May 16, 2005.

The increase will apply to interstate and intrastate traffic, and selected shipments between the U.S. and Mexico and Canada.
The increase applies only to the LTL companies within the FedEx Freight Segment. Rates for other subsidiaries of FedEx Corp., including FedEx Express, FedEx Ground, and FedEx Kinko's, are not affected.
Fedex cited higher tolling of new and existing highways and costs associated with new driver security requirements as factors that made an increase necessary. New diesel engines that comply with changing EPA requirements are expected to have higher acquisition and maintenance costs. After May 16, the new FedEx Freight base rate and rules tariffs will be available on the company's Web site, www.fedex.com/us/freight/main. Customers may also phone 1-800-Go-FedEx for additional information after May 16.
According to Fedex Freight, there may be additional adjustments in select lanes, service areas and in minimum and accessorial charges.