FedEx increases package rates to 2023

FedEx increases package rates to 2023

(CNN) — FedEx will increase ground and express freight rates by an average of 6.9% over the next year, the company said Thursday. Freight rates will increase by an average of 6.9% to 7.9%.

Both mark an increase in FedEx rate increases for this year.

Last week, FedEx warned that a global recession could be coming as demand for package deliveries around the world plummets.

FedEx shares tumbled 21% last Friday – the biggest one-day drop in its history – after the company warned that a slowing economy will send it $500 million below its revenue target.

The weakening global economy, particularly in Asia and Europe, has hurt FedEx’s express delivery business. The company said demand for packages weakened considerably in the final weeks of the quarter.

FedEx said it is responding by reducing flights and temporarily parking aircraft, reducing hours for its staff, delaying some hiring plans and closing 90 FedEx offices in addition to five corporate offices. It is also cutting $500 million from its capital expenditure budget for the fiscal year, which runs through May 2023, bringing that spending down to $6.3 billion.

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