FedEx shipping rates are slated to increase once the new year rolls around. The parcel shipping service provider said that in January 2019, it will hike its rates once again. This means that all of the three following shipping services will see price increases as of January 7 of next year: FedEx Express, FedEx Ground and FedEx Freight.
The company said that the shipping rates of FedEx Express will see an increase by an average of 4.9% for its domestic services, which applies to both its U.S. exports and imports. The service provider added that its FedEx Ground and FedEx Home Delivery will also see their rates climb by an average of 4.9% on the day.
The company said that its FedEx Freight shipping rates will increase even more at 5.9% on average for its services to the U.S., Canada and Mexico. These rate increases are not too different from the price hikes that FedEx implemented over the past two years.
It remains to be seen whether or not this is a good move as its rival UPS has not yet announced that it will increase its rates in 2019. FedEx said that the price increases come as a result of higher prices for its materials and services.
FDX stock is up about 0.6% following the news on Monday afternoon.