FedEx Corp. (NYSE: FDX) announced this morning that it would raise shipping rates at its FedEx Freight subsidiary by 6.9% beginning in July. The change affects shipments between the US and Canada, with the Lower 48 states, and within Canada, as well as the US portion of cross-border shipments to Mexico.
The company’s announcement also noted that there would be no increase to FedEx Freight’s fuel surcharge which it said is “one of the lowest in the LTL [less than truckload] industry. According to the AAA Fuel Gauge Report, a year ago a gallon of diesel fuel cost $3.993 compared with today’s price of $3.85.
FedEx offered no reason for the price hike, but the company did say earlier this year that uncertain economic conditions were having an impact on its business. This price increase could be the company’s way of trying to halt a slide in revenues.
Shares of FedEx are up about 1.2% at $87.12 in a 52-week range of $64.07-$98.66.