US shipping giant FedEx is echoing the sentiments of other major companies, as persistent inflation and a Fed rate hike signal the possibility of an imminent recession.
Companies like FedEx are bracing for a slowdown in discretionary consumer spending, which means there could be a slowdown in package deliveries.
FedEx announces it will raise rates to cover losses.
The company says customers should expect higher rates for Ground and Express services from 2023.
Customers should expect the average service rate to increase by approximately 6.9% or more.
The company will also raise freight rates, which could directly affect the cost and availability of consumer goods.
Freight rates will also increase by an average of about 6.9%.
In a recent forecast, the company warned that it expects to see a slowdown in package delivery demand during the holiday shopping season and is preparing to lose about $500 million in revenue.