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FedEx To Increase Shipping Rates From January 2020

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FedEx Corp. said after the peak holiday season, it will increase shipping rates and surcharges at its Express, Ground and Freight divisions, with effect from January 6, 2020.

The announcement comes just as the Memphis, Tennessee-based packaged delivery giant is scheduled to release its first-quarter earnings results later on Tuesday.

The period from November to December, which includes the crucial holiday season, is considered the peak season for shipping giants like FedEx and its rival United Parcel Service or UPS.

Being global transportation companies, the performance of the two companies are considered a strong barometer of overall consumer attitude and economy.

However, FedEx said for the third consecutive year, it will not apply additional residential surcharges during the holiday season, except for shipments that are oversized, unauthorized or require additional handling.

Rival United Parcel Service or UPS too had said in August that it would not apply additional peak surcharges for U.S. residential deliveries during the busy 2019 holiday season, unless by contractual exception or for those requiring special handling.

Shipping rates at FedEx Express, which delivers packages using aircraft, will increase by an average of 4.9 percent for U.S. domestic, export and import services.

The rates at FedEx Ground and FedEx Home Delivery units will also similarly increase by an average of 4.9 percent. Further, shipping rates at FedEx SmartPost, used for low-weight residential shipments, will rise.

FedEx Freight shipping rates will rise by an average of 5.9 percent for shipments within the U.S. and between the contiguous U.S. and Canada. The Freight shipping rates will also increase for shipments within Canada and Mexico, along with shipments between the contiguous U.S. and Mexico.

Effective January 20, 2020, there will be surcharge changes for Express and Ground packages. This includes pricing and criteria for packages that require additional handling or are oversized.

The company also said that the list of delivery area surcharge ZIP codes for the Express, Ground and SmartPost divisions will be changed with effect from January 6, 2020.

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