Federal Express (FDX) announced that it will raise rates for ground shipping by 5.9%. Fuel surcharges are getting cut by 1%. For more details see: “FedEx Ground to Raise Rates 4.9 Percent”
Note that this compares to a UPS rate hike of 4.9% for ground shipping, and recent moves by the U.S. Postal Service to hike shipping rates to stave off bankruptcy.
Federal Express (FDX) reported strong earnings and raised earnings guidance for the next quarter. Unlike many reports that continue to tout tight controls over hiring and labor costs as a path to profits, FedEx announced it would reinstate the matching component of its 401K program. This announcement is in-line with an earlier report from Hewitt Associates predicting that the majority of companies that dropped 401K matching during the recession would bring these programs back this year.