FEDEX FREIGHT PLANS 5.9% RATE INCREASE

FEDEX FREIGHT PLANS 5.9% RATE INCREASE

   FedEx Freight, the regional less-than-truckload operating unit of Memphis express giant FedEx Corp., said it would implement a 5.9-percent general rate increase July 22.

   The increase, impacting the company's two independent operating units, FedEx Freight East and FedEx Freight West, applies to intra- and interstate traffic, including Canadian transborder and other international lanes, as well as minimum and accessorial charges. Various additional adjustments will be made to selected lanes and service areas.

   'This increase is necessary to support and improve our technology offerings, service centers, equipment, and safety and security programs,' said Dennie C. Carey, FedEx Freight's senior vice president of marketing.

   'It will also be used to partly offset substantial increases in health care costs and insurance premiums in fiscal year 2003,' Carey said. 'In the last fiscal year we experienced double-digit increases in these categories. We expect substantial increases again in fiscal year 2003.'

   FedEx Freight East and FedEx Freight West will have a single base rate tariff and a single rules tariff. Shippers will be able to get rate quotes online at http://www.fedexfreight.fedex.com. After July 22, the new FedEx Freight base rates and rules tariffs will be available on the Web site.