FedEx Corporation (NYSE:FDX) will be increasing its shipping rates in 2017.
FedEx said that it will raise the shipping rates for United States domestic, United States export and United States import services by an average of 3.9%. The rates for Ground and Home Delivery will increase by an average of 4.9%.
FedEx also noted that shipping rates for SmartPost will be changing, but didn’t say by how much. The company is also planning to change its weight divisor for United States domestic Ground shipping from 166 to 139. This change will take place on Jan. 2, 2017.
FedEx will also be adjusting how it handles fuel surcharges for Ground shipments. Starting on Feb. 6, 2017, the shipping company will begin adjusting these fuel surcharges on a weekly basis. This is a change from the current system, which has FDX adjusting fuel surcharges on a monthly basis.
FedEx Freight shipping rates will be increasing by an average of 4.9%. This will include shipments in the United States, Canada and Mexico. It also includes shipments that will travel between these three countries.
Those shipping packages via FedEx Freight will also need to keep an eye on the Extreme Length surcharge. This is increasing from the current $85 to $150. The company is also changing what counts as an Extreme Length package. Currently, it’s any package 15 feet or longer. The update will reduce it to any package 12 feet or longer.
FedEx also said that it will announce changes to SameDay City pricing for 2017 later this year.
FDX shares were up 1% as of Noon Tuesday.
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