The FedEx Freight and FedEx National LTL rate increases announced in March go into effect April 2, 2007.

The FedEx entered the LTL market in the US with the acquisition of Watkins Motor Lines in September 2006 and maintains their LTL division as a separate entity under FedEx Freight.

The FedEx/Watkins merger along with UPS's acquisition of Overnite Express, is creating a blurring of lines between LTL and parcel industries by offering longer haul, larger shipment sizes with guarantees in service delivery usually reserved for express services. While increasing service levels, both carriers are also likely to try to use increased LTL service reliability as a way to raise rates in what has been a traditionally rate driven market. Both carriers will also continue to try to merge the Express and Parcel markets through bundled contracting and pricing offers.