FedEx (FDX) to Hike Rates in 2022 Amid Challenging Environment
FedEx (FDX) plans to raise shipping rates for its Express, Ground and Freight services in 2022 due to rising costs amid a challenging operating enviro...
FedEx Corporation FDX will hike shipping rates early next year due to rising costs associated with a “challenging operating environment”. This would also enable the company to serve its customers more efficiently through its continued investments in service enhancement, fleet maintenance, technology innovations etc., FedEx said.
Effective Jan 3, 2022, the company will increase shipping rates for its Express, Ground and Freight divisions. FedEx Express shipping rates for U.S. domestic, export and import services will rise by 5.9%, on average. FedEx Ground and Home Delivery shipping rates will also increase by an average of 5.9%. FedEx will also raise its Ground Economy shipping rates.
FedEx Freight shipping rates will increase by an average of 5.9% for customers who use FXF PZONE and FXF EZONE, and by 7.9% for those who use FXF 1000 and 501. This rate hike will be levied on shipments within the United States (including Alaska, Hawaii, Puerto Rico, and the U.S. Virgin Islands) and between the contiguous United States and Canada. Freight shipping rates will also be increased for shipments within Canada, Mexico, and between the contiguous United States and Mexico.
Besides shipping rate hikes, FedEx is revising surcharges for its Express, Ground, Ground Economy and Freight units. Effective Nov 1, 2021, the company will increase fuel surcharge on its FedEx Express U.S. domestic package and freight services, FedEx Ground, and FedEx Freight shipments. Effective Jan 17, 2022, FedEx Freight will levy a No Shipment Tendered surcharge, which would apply when a pickup will take place but no shipment will be tendered to the carrier. There will be changes in International Out-of-Delivery-Area and International Out-of-Pickup-Area surcharge rates, delivery and returns surcharge rates (when using FedEx Ground Economy services), as well as in additional handling and oversize surcharge rates for U.S. Express Package services and U.S. Ground services, next January onward.
Zacks Rank & Key Picks
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