News / FedEx bets on rate hikes being accepted, despite tough market headwinds

Soft market conditions blunted FedEx’s first-quarter results, but management is confident that its rate increases will get traction.

The integrator has announced a general rate increase (GRI) of 5.9% for the coming year, which will kick in on 6 January.

In addition, as usual, it is raising surcharges, which pushes cost increases for shippers well above 5.9% – but there is usually room for negotiated discounts.

However, market conditions do not look favourable for significant rate hikes. FedEx’s results for the first quarter ...