FedEx Express, FedEx Ground, and FedEx Freight, subsidiaries of FedEx Corp., will all increase prices by more than 5.9% next year.
American customers must dig deeper into their pockets for domestic, export, and import services from January 2024. Shipping rates will increase by an average of 5.9%. FedEx Freight shipping rates will hike by an average of 5.9%-6.9%. It will depend on the customer’s transportation rate scale. This change will impact anyone sending parcels in the US, including Alaska, Hawaii, Puerto Rico, and the U.S. Virgin Islands). It also applies when sending between the contiguous US and Canada.
Why the increase?
Much like any business, courier companies have to review their pricing every year to keep up with costs associated with the operating environment. Fuel, taxes, labor, and other expenses increase yearly, and to stay afloat, so must courier services.
FedEx explained in a statement that the 2024 adjustment is lower than expected, “The average annual rate increases are one percentage point lower than last year’s general rate increase.”
Modernized fleet
The US-based transport company says the price adjustments will enable it to continue “investing in service enhancement, fleet maintenance, technology innovations, and other areas to serve customers more effectively and efficiently.”
Its latest addition to the fleet is a 777F aircraft.
Demand surcharges increase price
If you plan to send a holiday parcel to your family, expect to pay more this year. Effective from the first of January next year, FedEx will increase customs clearance service fees on imports. In mid-January, the business will also assess the additional handling surcharge and oversize charge per eligible package, for international multi-piece shipments, instead of per shipment.
New package facility at Istanbul Airport
FedEx Express has signed an agreement to build a new facility at Istanbul Airport. Thus far, it has been sharing a location at the airport. A new building will bring opportunities to double its presence at the airport.
According to AirCargo News, the new facility will have three parking areas for FedEx aircraft, space for 32 vans, and seven docks and trucks. It will also enable FedEx to process 3,000 pieces per hour.
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