You may want to enjoy the last remaining months of the current shipping rates for FedEx, as the company has just announced its plans to raise shipping prices by a very significant amount. According to reports, beginning in January, FedEx plans to officially raise its shipping prices by an average of 6.9% for popular services FedEx Ground, FedEx Express and FedEx Home Delivery.
FedEx is starting off 2023 with large increase in its shipping rates, a move which is sure to anger long-time customers. @NBCNews reports, FedEx says it will be raising the prices on all of its consumer delivery services on an average of 6.9% beginning on January 2, 2023, while the rates for FedEx Freight will jump from 6.9% to 7.9%. That’s not the only increase customers should be aware of because the late payment fee will also go up to 8% for all U.S. FedEx Express and FedEx Ground invoices not paid according to previously approved payment terms. This is the latest rate increase for the company, as just last year rates went up an average of 5.9%.
If you’re wondering why the shipping giant is raising its prices once again in such a short time period, it’s due to the company failing to meet recent earnings expectations, which has resulted in significant cost-cutting measures company-wide. Earlier this month FedEx CEO Raj Subramaniam said in an interview that the state of the company currently is a direct reflection of the state of the U.S. economy, saying that the company is a “reflection of everybody else’s business” and that he expects a “worldwide recession.”
In a message to customers on its website, FedEx explained the shipping increases, “We regularly evaluate our shipping rates and fees and adjust them when needed. This enables us to keep investing in our business so we can continue delivering the shipping solutions you need and the excellent service you’ve come to expect from us,” the message read.