You may want to enjoy the last few months remaining of current shipping rates for FedEx, as the company just announced plans to increase shipping rates by a very substantial amount. According to the report, starting in January, FedEx is expected to officially increase shipping rates by an average of 6.9% on popular services FedEx Ground, FedEx Express and FedEx Home Delivery.
FedEx started 2023 with a massive increase in shipping fees, a move that is sure to anger longtime customers. @NBCNews reports, FedEx says it will increase prices by an average of 6.9% on all of its consumer delivery services from January 2, 2023, while FedEx Freight rates will increase from January 2, 2023. 6.9% to 7.9%. That’s not the only increase customers should be aware of as late fees will also be up to 8% on all U.S. FedEx Express and FedEx Ground invoices that are not paid on established payment terms. previously approved. This is the company’s latest rate hike, as last year interest rates rose by an average of 5.9%.
If you’re wondering why the shipping giant raised prices again in such a short period of time, it’s because the company hasn’t met earnings expectations recently, leading to cost-cutting measures. significant costs throughout the company. Earlier this month, FedEx CEO Raj Subramaniam said in an interview that the company’s current state is a direct reflection of the state of the U.S. economy, saying the company is “a reflection of everyone else’s business” and he expected a “recession. “
In a notice sent to customers on its website, FedEx explains the increase in shipping fees, “We regularly evaluate our shipping rates and fees and adjust them as needed. This allows us to continue to invest in our business so we can continue to deliver the transportation solutions you need and the excellent service you expect from us,” the announcement read.