Monday, September 28, 2009

FedEx rate increase is for your benefit, says company

So here we are in the classic example of a down economy. Employment is down, wages are down, orders are down. Business is down.

Well, at least something is up. FedEx is bumping up their rates, but you will be glad to know they are doing it for you. The company announced a 5.9% rate increase for its express shipments, to take effect January 4, 2010. While the company’s profits fell during their fiscal quarter that ended in August, FedEx did earn $181 million for the quarter. FedEx stressed that their new, higher rates are for the benefit of their customers.

“FedEx puts the needs of its customers as top priority as a provider of market-leading express shipping services,” said T. Michael Glenn, FedEx executive vice president for market development and corporate communications. “This pricing adjustment will enable FedEx to make key investments so we can continue to provide excellent customer service.”

As reported by the Journal of Commerce Online, the 5.9% rate increase will be partially offset by a 2% drop in the fuel surcharge, making the rate hike effectively 3.9%. Rates and surcharges for FedEx Ground and FedEx SmartPost will also increase for 2010, with the specifics in these areas to be announced later this year.

Don’t think you’re off the hook just because you use UPS for your small package shipping. The two companies traditionally move in lockstep on their rate increases, so you can count on yours being delivered soon.

With friends like these, it pays to have someone on your side to help ensure you get the benefit of the best shipping rates and service out there. Someone who works with the carriers day in and out, with the clout and experience to keep them honest. Times are tough, but there is something you can do about it.

Kirk Shearer, COO
800-989-0054 x103

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