FedEx (NYSE:FDX) has announced its latest round of rate increases. Following up on a Sept. 18 announcement that FedEx Express shipping rates would rise 3.9% "for U.S. domestic, U.S. export, and U.S. import services," the company confirmed Friday that the cost of shipping packages via FedEx Ground and FedEx Home Delivery will also rise -- up 4.9% on average.
As with past rate increases at FedEx, and similar to the rate increase that UPS (NYSE:UPS) announced last month, FedEx calculated the new rate rise by beginning with a 5.9% increase in base rates, and then walking back one percentage point worth of fuel surcharges -- resulting in a net 4.9% increase in cost.
The company also noted that FedEx SmartPost rates will "change," although the company didn't say by how much. All of these rate changes at FedEx are slated to take effect on Jan. 7. The company implemented a 6.9% rate increase for FedEx Freight back on July 9.
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