FedEx to modernize fleet, Freight to increase prices
"We are modernizing our aircraft fleet by retiring older, less-efficient, and less-reliable aircraft and replacing them with modern aircraft to build a fleet with higher reliability and better cost efficiency," said David J. Bronczek, president and chief executive officer of FedEx Express.
The impact of accelerating the retirement of aircraft will result in additional year-over-year depreciation expense of $74 million in FY14.
The Board of Directors declared a quarterly cash dividend of $0.15 per share on FedEx Corporation common stock, an increase of $0.01 per share over the previous dividend payment. The dividend is payable on July 1, 2013 to stockholders of record at the close of business on June 17, 2013.
FedEx Freight, a subsidiary of FedEx Corp., will increase shipping rates by an average of 4.5%, effective July 1, 2013. This rate change applies to eligible FedEx Freight shipments within the U.S. (including Alaska, Hawaii, Puerto Rico and the U.S. Virgin Islands), between the contiguous U.S. and Canada, within Canada, between the contiguous U.S. and Mexico, and within Mexico.
This rate change for FedEx Freight applies to shipments covered by the FXF 1000, FXF 501 and other related series base rates. Additional changes will include absolute minimum charges and accessorial rates and charges. The FedEx Freight fuel surcharge will remain unchanged and is one of the lowest in the LTL industry. The published fuel surcharge rates of the next six largest LTL carriers are at least 29 percent higher than FedEx Freight fuel surcharge rates, based on the average national price of diesel fuel as of May 27, 2013.
The new base rates, rules tariff and accessorial charges for FedEx Freight will be available at fedex.com on July 1, 2013. FedEx previously announced increases to shipping rates for FedEx Express and FedEx Ground, which were effective Jan. 7, 2013. ■