You may want to enjoy the last remaining months of FedEx’s current shipping rates, as the company has just announced its plans to increase shipping prices by a very significant amount. Starting in January, FedEx reportedly plans to officially increase its shipping prices by an average of 6.9% for popular FedEx Ground, FedEx Express, and FedEx Home Delivery services.
FedEx is starting 2023 with a big increase in its shipping rates, a move sure to anger long-time customers. @NBCNews reports, FedEx says it will raise prices for all of its consumer delivery services by an average of 6.9% starting January 2, 2023, while FedEx Freight rates will increase from 6.9% to 7 .9%. That’s not the only increase customers should be aware of because the late payment fee will also increase to 8% for all US FedEx Express and FedEx Ground invoices that are not paid in accordance with the terms of payment. pre-approved payment. This is the latest rate increase for the company, as rates rose an average of 5.9% last year alone.
If you’re wondering why the shipping giant is raising its prices yet again in such a short period of time, it’s because the company missed recent earnings expectations, which has resulted in significant cost-cutting measures in all the company. Earlier this month, FedEx CEO Raj Subramaniam said in an interview that the current state of the company is a direct reflection of the state of the US economy in 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 where necessary. This 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,” the message read.