(NewsNation) — FedEx is raising shipping and delivery rates next year, the company announced Thursday.
FedEx Express, FedEx Ground and FedEx Home Delivery rates will increase by an average of 6.9 percent. Freight rates with FedEx are expected to spike by an average of 6.9 to 7.9 percent.
“We regularly evaluate our shipping rates and fees and adjust them when needed. This enables us to keep investing in our business so we can continue delivering the shipping solutions you need and the excellent service you’ve come to expect from us,” the company stated on its website.
The decision comes after FedEx shares plummeted 21 percent last Friday. During an interview the day prior, FedEx CEO Raj Subramaniam told CNBC that the company is seeing a decrease in the amount of freight it is handling, and that he expects the economy to enter a “worldwide recession.”
When asked by CNBC’s Jim Cramer whether the economy was going to enter a worldwide recession, Subramaniam answered: “I think so. But you know, these numbers, they don’t portend very well.”
The price changes are slated to go into effect on Jan. 2, 2023.