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FedEx Archives: 2001 Press Releases

( BW)(PA-FEDEX-GROUND)(FDX) FedEx Ground to Lower Fuel Surcharge and Adopt Diesel Fuel Index; Adjustment Follows Trend of Decreasing Fuel Prices

    Business Editors, Transportation Writers

    PITTSBURGH--(BUSINESS WIRE)--Dec. 14, 2001--FedEx Ground, the second largest small-package ground carrier in North America and an operating unit of FedEx Corporation (NYSE:FDX), announced that it will lower its current 1.25 percent fuel surcharge to 0.75 percent effective Jan. 7, 2002. The company also will begin using an indexed method to calculate the fuel surcharge beginning February 4, 2002.
    The new dynamic fuel surcharge will be subject to adjustment monthly based on a rounded average of the national U.S. on-highway average price for a gallon of diesel fuel as published monthly by the U.S. Department of Energy. Changes to the FedEx Ground fuel surcharge, calculated according to the rounded index average and FedEx Ground trigger points, will be applied the first Monday of every month based on the average price of diesel fuel from two months prior. For example, on Feb. 4, 2002, the surcharge will be based on December's average diesel fuel price. The FedEx Ground trigger points may change from time to time, but information on the fuel surcharge for each month will be available to customers at fedex.com at least two weeks prior to taking effect.
    "This method will more closely link the fuel surcharge to prevailing market prices for diesel fuel," said Daniel J. Sullivan, president and chief executive officer of FedEx Ground. "With this move, our customers and FedEx Ground will be better positioned to adjust more quickly to marketplace changes."
    The surcharge applies to all FedEx Ground U.S. domestic and U.S. outbound net package charges, including residential and other delivery charges.
    With annual revenues of $20 billion, FedEx Corp. is the premier global provider of transportation, e-commerce and supply chain management services. The company offers integrated business solutions through a network of subsidiaries operating independently, including: FedEx Express, the world's largest express transportation company; FedEx Ground, North America's second largest provider of small-package ground delivery service; FedEx Freight, a leading provider of regional less-than-truckload freight services; FedEx Custom Critical, the world's largest provider of expedited time-critical shipments; and FedEx Trade Networks, a provider of customs brokerage, consulting, information technology and trade facilitation solutions.

    NOTE TO EDITORS: FedEx press releases are available on the World Wide Web at http://www.fedex.com.

    --30--jam/clv*

    CONTACT: FedEx Ground
             David Westrick, 412/859-5435
             david.westrick@fedex.com

    KEYWORD: PENNSYLVANIA
    INDUSTRY KEYWORD: TRANSPORTATION
    SOURCE: FedEx Ground