FedEx is hiking rates again
Posted November 5, 2018 10:01 a.m. EST
(CNN) — FedEx rates are going up again.
The Memphis-based company announced it would raise rates by an average of 4.9% as of January 7, 2019. That matches the increase that FedEx put in place at the start of 2018.
FedEx rival UPS has yet to announce its rate increase for 2019.
The growth in online shopping has increased shipping volumes for both companies. But costs are rising, including higher fuel prices. A shortage of truck drivers has made labor costs go up too.
Shares of FedEx (FDX) which are down about 10% for the year, were higher Monday morning following the rate announcement. UPS (UPS) shares, which have also been lower this year, also rose on the news.