FedEx announces shipping rate increases earlier, says Oppenheimer

Oppenheimer notes that FedEx (FDX) has announced its Express, Ground, and Freight Services shipping rate increases effective 1/1/24. FedEx Express will increase shipping rates by an average of 5.9% for US domestic, US export, and US import services. FedEx Ground and FedEx Home Delivery will increase shipping rates by an average of 5.9%. FedEx Freight will lift rates by an average of 5.9%-6.9%. The rate increases compare with FedEx Express and Ground average increases of 6.9% that became effective 1/2/23. Express and Ground rate increases have historically been in the mid-single digits, the firm says, pointing out that the timing of this announcement is earlier than last year’s 9/22/22 release from FedEx. Oppenheimer also notes that UPS (UPS) has yet to release its rate increases for the upcoming year. The firm has a Perform rating on FedEx’s shares.