FedEx raises parcel rates for 2023

(CNN) — FedEx will raise land and express shipping rates by an average of 6.9% next year, the company said Thursday. Transport fares will increase by an average of 6.9% to 7.9%.

Both mark an increase from FedEx’s rate hikes for this year.

Last week, FedEx warned that a global recession could be coming, as demand for worldwide package deliveries plunged.

FedEx shares fell 21% last Friday, — the biggest one-day drop in its history — after the company warned that a slowing economy would cause it to fall $500 million from 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 significantly in the final weeks of the quarter.

FedEx said it responded by reducing flights and temporarily parking planes, cutting hours for its staff, delaying some hiring plans and closing 90 FedEx Office locations and five company offices. It also cut $500 million from its capital expenditure budget for the fiscal year, which runs through May 2023, slashing that spending to $6.3 billion.

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