FedEx Corp. (FDX) on Wednesday said it would increase shipping rates for its FedEx Express service by an average of 3.5 percent effective Jan 2.

The rise comprises an average increase in standard list rates of 5.5 percent, offset by a decrease in its fuel surcharge of 2 percent.

The company will also raise a delivery surcharge for certain postal codes by up to 10 cents per package.

On November 7, FedEx said it would raise retail counter rates for its FedEx Express (search) and FedEx Ground services. It gave no details on the increase.

The world's largest air express carrier said the changes are to allow further investment in its business.

The announcement comes as FedEx hosts a meeting with analysts on Wednesday in New York. The meeting is expected to touch on the company's plans to increase capacity, grow profit margins, and expand in overseas markets, including China.

On Sept. 21, FedEx raised its earnings forecast for the current fiscal year, a forecast that took into account the effects of Hurricane Katrina (search). FedEx shares have jumped 11 percent since that announcement but are still down 13 percent on the year. Shares of rival United Parcel Service Inc. (UPS) are down 20 percent this year.