FedEx announced late Thursday that it will implement the largest general rate increase (GRI) in its history in 2023.
The company said it will increase the GRI by an average of 6.9% next year, which would be the largest year-over-year increase in its history.
“FedEx Express, FedEx Ground and FedEx Home Delivery rates will increase an average of 6.9%,” the company said. The increase will be between 6.9% and 7.9% for FedEx Freight, depending on “customer’s freight rate scale.”
Additionally, Freight Waves noted that the company’s typical annual rate hike would be between 4.9% and 5.9%. But analysts were already expecting the 2023 GRI to be at least 6% to offset inflation.
This guidance assumes the Company’s current economic outlook and fuel price expectations, the absence of additional COVID-19-related trade restrictions, the successful completion of planned second quarter share buybacks, and the absence additional adverse geopolitical developments. FedEx’s earnings per share forecast is based on applicable law and related regulations and guidance.
Michael C. Lenz, Executive Vice President and Chief Financial Officer of FedEx Corp., said, “I am confident that the cost reduction measures we are implementing urgently will improve efficiency and improve profitability at the support of our long-term financial goals.
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