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The FedEx rate increase will come into effect on January 7, after the peak holiday season.
Photo:
Lynne Sladky / Associated Press
FedEx
Corp.
FDX 0.78%
stated that many of its business units would increase shipping rates after the holidays, given the higher transportation costs and the limited capacity that put pressure on delivery service providers.
Shipping rates for FedEx Express, FedEx Ground and FedEx Home Delivery will average 4.9% on most US services, FedEx said Monday. FedEx freight rates will also increase on average by 5.9% for US services, between the United States and contiguous Canada, in Canada, between the United States and Mexico, and Mexico.
The higher rates will come into effect on Jan. 7, said FedEx, after the important peak period of holiday shipments.
FedEx rival
United Parcel Service
Inc.
experienced a 4.8% increase in the third quarter, the fastest growth since 2011. The company increased the prices of domestic shipments and added surtaxes on oversized parcels to offset increase the shipping capacity.
Last month, the US Postal Service announced it would raise prices for its first-rate Forever stamps by 10% in January, its largest percentage increase in more than three decades. Among its mail products, which include stamps for letters and postcards, the postal service raises prices by 2.5%.
Write to Kimberly Chin at [email protected]
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