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FedEx Archives: 1999 Press Releases

( BW)(CA-VIKING-FREIGHT)(FDX) Viking Freight Announces Implementation of a Fuel Surcharge

    Business Editors

    SAN JOSE, Calif.--(BUSINESS WIRE)--Aug. 10, 1999--In response to the continued high cost of diesel fuel, Viking Freight, Inc., the leading LTL (less-than-truckload) carrier providing western regional transportation service and a subsidiary of FDX Corp. (NYSE:FDX), will implement a fuel surcharge effective Monday, Aug. 16, 1999.
    The surcharge will be 1.0 percent of the net charge for all shipments rated at less than 20,000 pounds and 2.0 percent of the net charge for shipments rated at 20,000 pounds or more. The last time Viking invoked a fuel surcharge was June 1996.
    "While diesel fuel prices have risen nearly 20 percent since mid-March of this year, Viking elected to absorb the increased cost rather than pass it on to shippers while maintaining our usual high quality of service," said Keith E. Lovetro, Viking's vice president of marketing. "However, the price of fuel has continued to increase. We understand the potential difficulties a fuel surcharge can cause, and we appreciate our customers' continued support during this challenging period."
    Viking uses the U.S. Department of Energy's national average fuel index as its basis for invoking a fuel surcharge. Viking's general rules tariff allows for at least a 0.5 percent fuel surcharge when the DOE index hits $1.12 per gallon and at least a 1.0 percent fuel surcharge when the index reaches $1.15 per gallon. As of August 9, 1999, the DOE index surpassed the $1.15 price point.
    "Even though the index went above the $1.12 mark on July 12, we decided not to pass this additional cost along to shippers hoping that the price would soon return to lower levels," said Lovetro. "Unfortunately the price has continued to increase, so we must offset the impact with this fuel surcharge. We look forward to a drop in prices so that the surcharge can be eliminated."
    Viking's fuel surcharge will remain constant as long as the DOE index stays below $1.20 per gallon. Should the index reach the $1.20 mark, the fuel surcharge would increase to 1.5 percent for shipments under 20,000 pounds and 3.0 percent for shipments at or over 20,000 pounds.
    The DOE posts a new index each Monday on its web site at www.eia.doe.gov/price.html. Shippers can also call the DOE diesel fuel hotline at 202-586-6966 to find out the latest index.
    As part of FDX Corporation and its family of companies, Viking Freight Inc., headquartered in San Jose, Calif., specializes in award-winning next-day and second-day regional freight service. Viking provides services in 11 western states, including intermodal service to Alaska and Hawaii. Synonymous with an EZTDBW(R) (Easy-To-Do-Business-With) operating philosophy, Viking has a tradition of posting an on-time service record that is consistently among the best in the industry. In addition to a full range of electronic information services, Viking also offers its customers value-added services, such as assembly and distribution. More information about Viking can be found at the company's web site at www.vikingfreight.com.
    FDX Corp., a $17 billion holding company, provides comprehensive transportation, logistics, e-commerce and supply chain management solutions. Its principal operating subsidiaries are Federal Express Corp., the world's largest express transportation company; RPS Inc., North America's second largest business-to-business ground small-package carrier; Viking Freight Inc., a less-than-truckload carrier operating principally in the western U.S.; Roberts Express Inc., a critical-shipment carrier; and FDX Global Logistics Inc., a contract logistics provider.

    NOTE TO EDITORS: FDX press releases are available on the World Wide Web at www.fdxcorp.com. EZTDBW(R) is a registered trademark of Viking Freight, Inc.

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     CONTACT: Viking Freight, Inc.
              Kathy Keller, 408/323-4238
              Keller-Kathy@vikingfreight.com
              or
              Just Marketing
              Jean E. McClymonds, 831/438-4800 ext. 2
              justmktng@aol.com

     KEYWORD: CALIFORNIA
     INDUSTRY KEYWORD: TRANSPORTATION OIL/GAS