FedEx announced late Thursday that it will implement the largest general rate increase (GRI) in its history in 2023.
The company announced it will increase the GRI by an average of 6.9 percent next year, which would be the largest year-over-year increase in its history.
“FedEx Express, FedEx Ground, and FedEx Home Delivery rates will increase by an average of 6.9%,” the company stated. The increase will range between 6.9 percent and 7.9 percent for FedEx Freight, depending “on the customer’s transportation rate scale.”
Additionally, Freight Waves noted that the company’s usual yearly rate hike would be between 4.9 percent and 5.9 percent. But analysts were already expecting the 2023 GRI to be at least six percent to offset inflation.
FedEx clarified:
These forecasts assume the company’s current economic forecast and fuel price expectations, no additional COVID-19-related business restrictions, successful completion of the planned stock repurchases during the second quarter, and no additional adverse geopolitical developments. FedEx’s earnings per share forecast is based on current law and related regulations and guidance.
Michael C. Lenz, FedEx Corp. executive vice president and chief financial officer, said, “I am confident the cost actions we’re implementing with urgency will enhance efficiency and drive improved profitability in support of our long-term financial targets.”
Jacob Bliss is a reporter for Breitbart News. Write to him at jbliss@breitbart.com or follow him on Twitter @JacobMBliss.