All of us are feeling the squeeze of inflation under this administration and FedEx is no different.
The company announced it will increase the General rate increase (GRI) by an average of 6.9 percent next year, which would be the largest year-over-year increase in the history of the company.
“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.”
Normally the rate increase would be around 4 or 4.9 percent but the larger GRI is to offset the massive inflation rate.
FedEx released a statement saying,
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.