FedEx raises shipping prices by 6.9% amid rising inflation

FedEx raises shipping prices by 6.9% amid rising inflation

FedEx said Thursday it was raising prices for all consumer delivery services an average of 6.9% effective January 2.

FedEx Freight rates will increase by an average of 6.9% to 7.9%.

The shipping giant recently missed earnings expectations and announced significant cost-cutting measures as it warned of a global economic slowdown. Chairman Raj Subramaniam told CNBC's Jim Cramer on Mad Money last week that the company is a reflection of everyone else's business and he believes that there will be a worldwide recession. Inflation has hit the company squarely this year, according to Subramaniam, who was talking about it on an earnings call.

The company did not respond to a request for comment Friday.

The company said on its website that they regularly evaluate their shipping rates and fees and adjust them when needed. This allows us to keep investing in our business so we can continue to deliver the shipping solutions you need and the excellent service you've come to expect from us. FedEx increased rates by an average of 5.9% last year.

The late payment fee for FedEx Express and FedEx Ground invoices that are not paid according to approved payment terms will be raised to 8% by the company.

The main rival of UPS has not yet announced a rate increase, but the two companies have historically increased rates in tandem.