Wednesday, June 13, 2012

FedEx Freight Increases LTL Cargo Rates

Drive for Profit Continues as Environmental Policies Maintained
Shipping News Feature

US – FedEx Freight, the less than truckload (LTL) segment of the international logistic corporation’s operation, has announced a 6.9% rate increase to come into effect on the 9th July. The increase will affect all shipments between the US and Canada and export cargo into Mexico with import rates remaining unchanged.

FedEx Freight has benefitted since amalgamating with FedEx National LTL bringing it back into profit and claims its fuel surcharges are markedly below that of direct competitors and that their overall rates remain competitive despite the latest announcement.

FedEx remain convinced that there is undersupply in the sector, a claim that many might dispute, particularly in certain areas of the country, and says the rise is necessary to increase profit margins. Earlier this year, the company increased its general rate by 4.9% for FedEx Ground and FedEx Home Delivery shipments and raised shipping rates by 3.9% for FedEx Express covering U.S. domestic, U.S. export and import services, again citing strengthening revenue generation as the reason.

In other areas the group is expanding its fleet of electric vehicles with deployments worldwide in Hong Kong, Berlin, Florence, London and Paris expected as well as installing 34 such vehicles in its California area operation. It also is shedding a batch of its rarely used aircraft with 18 Airbus A310-200 and 6 Boeing MD10-10 freighters due to retire.