FedEx (FDX) said on Friday that it will raise its rates on ground and home delivery packages by a net average of 4.9% on Jan. 2, as demand for its services stays strong. That comes on top of other rate increases by the company. Shares rose 2% in morning trading.
“FedEx previously announced on Sept. 22, 2011 that it will increase shipping rates for FedEx Express by a net average of 3.9% for U.S. domestic, U.S. export and U.S. import services also effective January 2, 2012. FedEx Freight implemented a 6.75% general rate increase on Sept. 6, 2011,” the company said in a statement.
UPS (UPS) has also increased its rates by similar amounts recently.
The shipping companies are often considered strong bellwethers of the overall economic climate. But it’s unclear whether confidence at FedEx and UPS truly indicates that the economy is back on track, or only that retailers are increasingly depending on fast shipments instead of allowing inventory to pile up, as Reuters notes.
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