FEDEX GROUND TO LOWER FUEL SURCHARGE, ADOPT DIESEL FUEL INDEX

FEDEX GROUND TO LOWER FUEL SURCHARGE, ADOPT DIESEL FUEL INDEX

   FedEx Ground, the small package ground carrier unit of FedEx Corp., said it will lower its fuel surcharge to 0.75 percent, from 1.25 percent, effective Jan. 7.

   The Pittsburgh-based company also said it will begin using an indexed method to calculate its fuel surcharge, starting Feb. 4. The surcharge will apply to all FedEx Ground domestic and U.S. outbound net package charges, including residential and other delivery charges.

   The new 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 FedEx Ground's surcharge will be applied the first Monday of each month based on the average price of diesel fuel from two months prior. For instance, the Feb. 4 surcharge will be based on December's average diesel fuel price. Information on any change to the surcharge will be made available to FedEx Ground customers at least two weeks prior.

   'The 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.