According to the latest report, the US express delivery giant FedEx announced that in response to the slowdown in the global express delivery business, it plans to increase the freight rate by an average of 6.9% from January next year.
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The price hike comes days after FedEx slashed its profit and sales forecasts. It is worth mentioning that the price increase this time is higher than in previous years. FedEx increased rates by an average of 5.9% last year, the first time in eight years that rates have risen more than 4.9%.
Moreover, these plans are part of FedEx’s first-quarter earnings report, which also disclosed other cost-cutting plans. FedEx said it expects to save $2.2 billion to $2.7 billion this fiscal year due to plans announced last week to ground some planes.
Furthermore, the company also plans to save an additional $4 billion annually from its operations. FedEx outlined plans to park planes, suspend some Sunday deliveries and close corporate offices after falling demand prompted the company to scale back its forecast last week.
