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FedEx raises freight unit rates

An all-electric Federal Express delivery truck is seen in San Diego, California September 24, 2013. REUTERS/Mike Blake
An all-electric Federal Express delivery truck is seen in San Diego, California September 24, 2013. REUTERS/Mike Blake

(Reuters) - FedEx Corp said it will raise shipping rates at its freight business by 3.9 percent, effective March 31.

The rate increase is for FedEx Freight shipments within the United States including Alaska and Hawaii, as well as Puerto Rico and the Virgin Islands, Canada and within Mexico.

The world's second biggest parcel delivery company after United Parcel Service Inc , FedEx had earlier raised rates by 3.9 percent for its domestic express shipping unit, effective Jan 6.

The increase is smaller than last year's, when FedEx increased freight rates by 4.5 percent, effective July.

While FedEx and UPS revise their shipping rates every year, the rate increase comes at a time when both companies have been trying to readjust to changes in shipping patterns, as many customers move towards cheaper shipping services, especially internationally.

UPS said late last year the company planned to raise rates across the board on an average of 4.9 percent within and between the United States, Canada, and Puerto Rico.

FedEx shares were trading down 0.3 percent at $132.90 Monday on the New York Stock Exchange.

(Reporting by Nivedita Bhattacharjee in Chicago and Sagarika Jaisinghani in Bangalore; Editing by Nick Zieminski)

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