FedEx to raise rates on U.S. ground shipping

From Bloomberg News

FedEx Corp. said it would boost U.S. ground shipping rates an average of 4.9% next year, its largest increase since 1998.

The change follows FedEx's announcement last month that it would increase rates for FedEx Express air shipments by 3.5%. Both changes take effect Jan. 1, the Memphis, Tenn.-based company said.

The rate increase matches those of United Parcel Service Inc., the largest ground shipper, and Deutsche Post's DHL Express unit, which is expanding in the U.S. It signals that the companies won't engage in price competition that might have slowed profit growth amid higher fuel and labor costs.

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