FedEx Corporation (FDX - Free Report) announced that it will increase shipping rates starting from Jan 4, 2021. The rates will surge by an average of 4.9% for U.S. domestic, U.S. export and U.S. import services. FedEx Ground and FedEx Home Delivery shipping rates will also soar by an average of 4.9%. Moreover, FedEx SmartPost shipping rates will also increase.
While FedEx Freight shipping rates will surge by an average of 4.9% for customers who use FXF PZONE and FXF EZONE, the same will rise 5.9% for customers who use FXF 1000 and FXF 501 for shipments within the U.S. (including AK, HI, Puerto Rico and the U.S. Virgin Islands) and between the contiguous United States and Canada. FedEx Freight shipping rates will also increase for shipments within Canada, Mexico, and between the contiguous United States and Mexico.
The increase in rates will permit FedEx to continue its investments in service enhancement, fleet maintenance, technology innovations and other areas to serve customers more effectively and efficiently. The decision to increase prices is not an unexpected one given the increased costs and the surge in e-commerce demand in the current coronavirus-ravaged scenario.
From January 2021, FedEx will levy a late fee for U.S. FedEx Express and FedEx Ground invoices not paid according to the approved payment terms.
Zacks Rank & Stocks to Consider
FedEx currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Transportation sector are Knight-Swift Transportation Holdings Inc. (KNX - Free Report) , Canadian Pacific Railway Limited (CP - Free Report) and Werner Enterprises, Inc. (WERN - Free Report) . Knight-Swift sports a Zacks Rank #1(Strong Buy), while Canadian Pacific and Werner carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term expected earnings per share (three to five years) growth rate for Knight-Swift, Canadian Pacific and Werner is pegged at 15%, 8% and 8.5%, respectively.
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