Fedex Raises Rates For Domestic Shipments

Federal Express Corp. is raising rates for domestic package shipments by 3 percent to 4 percent, the company announced Tuesday.

The move, which takes effect Feb. 15, came a week after United Parcel Service announced it would boost U.S. rates by 3.3 percent, effective Feb. 7.

Mason Kaufman, a shipping consultant for Express Logistics of Memphis, said FedEx is in good financial shape but had the opportunity to raise rates because of the UPS increase.

“If UPS raises their rates 3 percent, people just traditionally pay it,” Kaufman said. “It just opened the door for FedEx to get 3 percent more profit.”

The new rates will not affect most of FedEx’s larger customers because they have contracts locking in their shipping fees, he said.

FedEx said there would be no change in international rates.