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FEDEX
Corp., the second-largest US package shipping company,
will increase 2008 rates for FedEx Ground and Home
Delivery by an average of 4.9 percent.
The
change, announced on November 30 by Memphis,
Tennessee-based FedEx in a statement, matches the 2008
rate boosts planned by United Parcel Service Inc. (UPS)
and DHL Express, a unit of Germany’s Deutsche Post AG.
The FedEx rates take effect on January 7.
The
ground rate increases at FedEx and UPS match those for
2007, which were the biggest since 1998. The identical
increases among the carriers suggest they won’t engage
in a price war.
FedEx
cut its fiscal 2008 profit forecast this month for a
second time because of rising fuel costs and weak-
freight demand. The company said it was cutting expenses
and reviewing planned capital spending, without
providing specifics.
FedEx
said earlier it will boost prices at its FedEx Express
air-shipping unit by 6.9 percent, while lowering the
fuel surcharge 2 percentage points, for a net increase
of 4.9 percent. UPS and DHL announced the same rate
changes.
FedEx
rose $2.28, or 2.4 percent, to $98.47 at 4:21 p.m. in
New York Stock Exchange composite trading. The shares
have fallen 9.3 percent this year. (Bloomberg) |
