FedEx raises package rates for 2023

FedEx raises package rates for 2023

(CNN) — FedEx will increase ground and express shipping rates by an average of 6.9% next year, the company said Thursday. Freight rates will increase by an average of 6.9% to 7.9%.

Both mark an increase in FedEx’s rate hikes for this year.

Last week, FedEx warned that a global recession could be looming as demand for package delivery around the world plummets.

Shares of FedEx plunged 21% last Friday, the biggest one-day drop in its history, after the company warned that a slowing economy will cause it to fall $500 million short of its revenue target.

The weakening global economy, particularly in Asia and Europe, has affected FedEx’s express delivery business. The company said package demand weakened considerably in the closing weeks of the quarter.

FedEx said it is responding by reducing flights and temporarily parking planes, cutting hours for its staff, delaying some hiring plans and closing 90 FedEx Office locations as well as five corporate offices. It’s also cutting $500 million from its capital spending budget for its fiscal year, which runs through May 2023, cutting that spending to $6.3 billion.

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About the Author: Pierre Cohen

A person who has expertise in politics and writes articles to fill his spare time as a hobby.