FedEx hike up shipping rates, at the same time as announcing earnings surge
FedEx Express, FedEx Ground and FedEx Freight, subsidiaries of FedEx Corp, will increase shipping rates effective January 5, 2015.
The logistics giant will increase shipping rates by an average of 4.9 percent across all its business units for US domestic, US export and US import services.
This rate change applies to eligible FedEx Freight shipments within the U.S. (including Alaska, Hawaii, Puerto Rico and the US Virgin Islands), between the contiguous US and Canada, within Canada, between the contiguous US and Mexico, and within Mexico.
FedEx previously announced in May 2014 that it will apply dimensional weight pricing to all FedEx Ground shipments. That change also takes effect January 5, 2015.
The news comes fresh off the back of some pleasing financial reports from FedEx, regarding its performance during quarter one of 2014. Revenue jumped up 6 percent to $11.7 billion from $11.0 billion in the previous year, and operating income rocketed up 24 percent to $987 million from $ 795 million last year.
Operating income increased primarily due to higher volumes and increased yields at all three transportation segments. Results in the first quarter also include benefits from lower pension expense and the company’s profit improvement programs. These benefits were partially offset by higher aircraft maintenance expense due to the timing of certain engine maintenance events.
Alan Graf Junior, Executive Vice President and Chief Financial Officer of FedEx Corp, said: “FedEx reported strong first quarter results, as all three of our transportation segments drove higher revenues and improved profitability year over year.
“Our profit improvement programs are progressing as planned and we continue to expect strong earnings growth this year.”
Details of all changes to rates and surcharges are available at http://www.fedex.com/us/2015rates