New York (CNN Business)FedEx will increase its shipping rates starting in the new year, the company announced Monday.
The increase is set to take effect on Jan. 3, 2022, and will apply to all US domestic, US export and US import services. FedEx Ground, which delivers to businesses, and FedEx home delivery will increase by an average of 5.9%. FedEx Freight customers could see an increase of up to 7.9%.Freight shipping rates will also increase for shipments within Canada and Mexico, as well as between those countries and the contiguous United States, the company said.
The shipping crisis is getting worse. Here's what that means for holiday shoppingBut FedEx customers may also see a price increase before the holiday season.
Starting Nov. 1, a fuel surcharge will be added to certain FedEx shipments, including FedEx Express, FedEx Ground and FedEx Freight shipments.Read More”These changes reflect incremental costs associated with the challenging operating environment,” the company said in a statement.Last month, the United States Postal Service requested a temporary price increase on a variety of mail services for the peak holiday season to offset rising delivery costs. A similar price increase had been implemented during the 2020 holiday season.
Global shipping is still in crisis, with backlogs looming over the holiday period. With both supply chain delays and soaring consumer demand, shipping containers have become backed up, making it much more expensive for companies to ship their goods.- CNN’s Julia Horowitz, Alison Kosik and Moira Ritter contributed to this report.
Source: edition.cnn.com