FedEx Freight Takes 5.9 percent GRI

FedEx Freight Takes 5.9 percent GRI

Copyright 2004, Traffic World, Inc.

FedEx Freight is implementing a 5.9 percent general rate increase effective June 14. The increase will apply to interstate and intrastate traffic and selected shipments between the United States and Mexico and Canada.

In addition, FedEx Freight said it will take "various additional adjustments," including select minimum and accessorial charges as well as some select lanes and service areas.

In the past year FedEx Freight, the second-largest LTL operation in the nation, said it made "significant investments" in technology, added strategic service centers and expanded fleet with more than 1,800 new tractors and trailers.

"Going forward, we will continue to invest in key elements of our infrastructure to provide the level of service our fast cycle logistics customers require," said Dennie Carey, senior vice president of marketing.

Carey noted that some of these investments carry higher costs than in the past. In particular, the government-compliant engines of today are more expensive to acquire and operate than their predecessors.

"Further, with additional EPA requirements slated for 2006, 2007 and 2010, this trend is likely to continue," he said.

Carey also cited rising health care costs, insurance premiums and liability requirements, as well as greater costs for security, as factors affecting the company''s costs.

FedEx shippers can access rate quotes online at www.fedexfreight.fedex.com. After June 14, the new FedEx Freight base rate and rules tariffs will be available on the company''s Web site.