Source: Benzinga Feeds
FedEx Freight, the less-than-truckload (LTL) unit of FedEx Corp . (NYSE: FDX ), has imposed a $7 per-shipment surcharge on all shipments moving to, from and within California, the parent company said. The new assessment, dubbed a “California Compliance Surcharge,” took effect Jan. 20. It is part of a slew of pricing adjustments at FedEx which went into force on that date. The company, which posted all of the new charges on its website, did not elaborate on the California surcharge other than to say it will be tacked on to “all other lawful charges” and will be collected from the payor of the charges. The company did not respond to a request for comment. Transport companies serving California have been bracing for higher operating costs ever since Gov. Gavin Newsom signed the landmark AB5 bill into law last year. The law, which was scheduled to take effect Jan. 1 but has been stayed by the courts, makes it harder for companies to prove that workers are functioning as independent contractors and not as employees.