Gridlock News

Fedex will be raising its rates on April 24, 2006 by almost 6%. Gas price increases were not sited as a reason. Instead Fedex indicated according to the Memphis Business Journal, "The rate increase is related to service offerings and innovations such as its no-fee, money-back guarantee, said Dennie Carey, senior vice president of marketing for FedEx Freight, in a statement. Those services involve fast-cycle logistics and require continuous investment. Other factors contributing to the rate increase include increasing highway tolls and access fees and the investment in more expensive, environmentally-responsible equipment, the company said. " Dennie Carey goes on to state in a Fedex Press Release, “Our ability to help companies take inventory out of the supply chain has enormous value to our customers employing fast-cycle logistics, and requires continuous investment in safe, fuel-efficient equipment, our network of more than 330 service centers and an educated and engaged workforce.” Fedex returned to its normal Surcharge practice on November 1, 2005 after fuel price fluctuation stabilized following Hurricane Katrina. There was no indication that recent spikes in oil and fuel would have an impact on Surcharges.