FedEx raises shipping prices to combat slowing growth

FedEx announced Thursday that it is raising prices for all of its consumer delivery services by an average of 6.9% starting Jan. 2.

FedEx Freight rates, meanwhile, will increase an average of 6.9% to 7.9%.

The shipping giant recently missed earnings expectations and announced major cost-cutting measures as it warned of a global economic slowdown. CEO Raj Subramaniam told CNBC’s Jim Cramer on “Mad Money” last week that the company was “a reflection of everybody’s business” and that he expects a “global recession.” On an earnings call, Subramaniam also said inflation had hit the company “sharply” this year.

The company did not immediately respond to a request for comment on Friday.

“We regularly review our shipping rates and charges and adjust them as necessary,” the company said on its website. “It allows us to continue to invest in our business so that we can continue to provide the shipping solutions you need and the excellent service you expect from us.”

Last year, FedEx raised its rates an average of 5.9%.

The company is also increasing its late payment fee to 8% for U.S. FedEx Express and FedEx Ground invoices not paid in accordance with approved payment terms.

While FedEx’s main rival, UPS, has yet to announce its own rate increase, the two companies have historically raised rates in tandem.

In August, the US Postal Service announced an increase in holiday rates, with Priority Mail rates set to increase by $0.95.

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