FedEx Corp. said Tuesday it will raise its domestic and international rates by an average of 3.5% on Jan. 7, the same day its chief rival, United Parcel Service, will increase its rates by an average of 3.5%.
Atlanta-based UPS, which raised its rates by an average of 3.7% last year, announced its planned rate increase in early November.
FedEx raised its rates an average of 4.9% last year.
The planned increases come at a time when the U.S. Postal Service is proposing to raise its rates by an average of 8.7%. In addition to other rate increases, the USPS is proposing to raise the rates of its package delivery services by 9%.
Meantime, under the new rate schedule announced by both FedEx and UPS, their respective residential package rates will go up a nickel to $1.10 from $1.05.
But while Memphis-based FedEx is increasing its residential delivery (fuel) surcharge to $1.35 from $1.30, UPS is holding the line on its surcharge, keeping it a 1.25% of the shipping cost.
While FedEx is raising its courier pickup charge by $1 to $4 from $3, UPS is raising its rates for overnight and two-day express services by just about 4%. UPS’ rates for U.S. export services will go up by 3.9% while FedEx’s rate for the same service will go up by 3.5%.
Network
