FedEx Freight, FedEx National LTL Announce General Rate Increase

FedEx Freight and FedEx National LTL will implement 5.7% general rate increases (GRI) effective January 5, 2009. Both less-than-truckload (LTL) companies are part of the FedEx Freight Corp. operating segment of FedEx Corp. (NYSE:FDX). Rates for other operating companies within FedEx Corp., specifically FedEx Express and FedEx Ground, are not affected.

Delivering approximately 80% of its shipments next-day and second-day, FedEx Freight provides regional LTL service designed for companies operating fast-cycle logistics. FedEx National LTL provides long-haul service, supporting businesses with planned distribution.

"At both FedEx LTL companies, we are committed to supporting our customers’ supply chains by investing in key elements of infrastructure—safe and reliable, EPA compliant equipment; new or expanded facilities in strategic locations; technology enhancements to provide customers with greater shipment visibility; and most importantly, our people,” said Dennie Carey, senior vice president of Marketing, FedEx Freight. "We have a fully engaged workforce in the industry to better serve our customers.”

Since January 2008, FedEx Freight has improved service standards in key markets throughout the U.S., and reduced transit times in more than 3,300 transportation network lanes. The company also streamlined Canadian cross-border processes, enabling next-business-day coverage between major Canadian gateway cities and several regions across the U.S.

Now fully re-branded, FedEx National LTL is operating in expanded facilities in San Bernardino, Calif., Phoenix, Ariz., Decatur, Ala., and Rock Island, Ill. The company is also transitioning from non-decking trailers to units with decking, which reduces the potential for damage to freight.

Customers of both FedEx Freight and FedEx National LTL will benefit from enhanced technology that provides greater shipment tracking information while freight is in transit.

The GRI will apply to interstate and intrastate traffic, as well as certain shipments between the U.S. and Canada and Mexico. Various additional adjustments will include minimum and accessorial charges, as well as adjustments in select lanes and service areas.

After January 5, the new base rate and rules tariffs for FedEx Freight will be available on the company’s Web site, www.fedex.com/us/freight/main/ and new base rates and rules tariffs for FedEx National LTL will be available at http://fedex.com/us/national/main/. Customers may access rate quotes via these sites.

About FedEx Freight

Within FedEx Corp., the FedEx Freight Segment had annual revenues of $4.9 billion in fiscal year 2008. With corporate offices in Memphis, Tenn., the Segment includes FedEx Freight, a leading U.S. provider of regional LTL freight services; FedEx National LTL, a leading U.S. provider of long-haul LTL services; FedEx Freight Canada, an LTL operating company serving most points in Canada; FedEx Custom Critical, North America's largest time-specific, critical shipment carrier; and Caribbean Transportation Services, the leading provider of airfreight forwarding services between the United States and Puerto Rico. For more information, visit the FedEx web site, fedex.com.

About FedEx Corp.

FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. With annual revenues of $39 billion, the company offers integrated business applications through operating companies competing collectively and managed collaboratively, under the respected FedEx brand. Consistently ranked among the world’s most admired and trusted employers, FedEx inspires its more than 290,000 employees and contractors to remain "absolutely, positively” focused on safety, the highest ethical and professional standards and the needs of their customers and communities. For more information, visit news.fedex.com.