FedEx to Increase Shipping Charges in 2022

FedEx’s (FDX) subsidiaries FedEx Express, FedEx Ground and FedEx Freight are planning to increase shipping charges from January 3, 2022. The company provides transportation, Ecommerce and business services worldwide.

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The company said the shipping rates of FedEx Express will be raised by about 5.9% on average for all U.S. domestic, U.S. export and U.S. import services. Moreover, FedEx Ground and FedEx Home Delivery shipping rates will surge 5.9%. FedEx Ground Economy shipping rates are also expected to rise.

Further, the shipping rates of FedEx Freight will increase 5.9% for customers using FXF PZONE and FXF EZONE and 7.9% for customers who use FXF 1000 and 501. (See FedEx stock chart on TipRanks)

FedEx said the changes reflect incremental costs associated with the challenging operating environment. It added that the increased rates would enable FedEx to continue to invest in service enhancement, fleet maintenance, technology innovations, and other areas to serve customers more effectively and efficiently.

On September 17, Robert W. Baird analyst Garrett Holland assigned a Buy rating to the stock with a price target of $350. The price target implies 39.6% upside potential from current levels.

Holland has lowered his EPS expectations for the first quarter of Fiscal Year 2022, “which reflects moderating revenue growth and margin expansion primarily for Ground along with higher incentive compensation expense.”

Based on 17 Buys, 3 Holds and 1 Sell, the stock has a Strong Buy consensus rating. The average FedEx price target of $350.42 implies 39.7% upside potential from current levels. Shares have gained 5.1% over the past year.

TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on FedEx with 2.1% of investors increasing their exposure to FDX stock over the past 30 days.