FedEx is increasing its Express rates by 6.9 percent. The company is calling it an average increase of 4.9 percent, "which is composed of a 6.9 percent increase in standard list rates, offset by a 2.0 percent reduction in the fuel surcharge."

The company is reducing the fuel surcharge, but of course can increase it again in the future. In the meantime, they can spin a 6.9 percent rate hike as a 4.9 percent hike. The new rates are effective January 7, 2008, and apply to U.S. and U.S. export express package and freight shipments. Rates and surcharges for FedEx Ground also will increase for 2008, to be announced later this year.

Also new in 2008: FedEx Express customers importing goods to the U.S. will pay U.S. dollar rates. "This provides a consolidated set of U.S. import rates to U.S. customers allowing them to avoid uncertainties caused by currency fluctuations. Increases in rates for shipments inbound to the U.S. from certain international locations will also be effective Jan. 7, 2008."

UPS is expected to announce their 2008 rates next month.

http://www.fedex.com/us/rates2008