FedEx Follows UPS in Raising Rates

FedEx Corp. said it will raise rates for air and ground package shipments about 3.5% next year.

The increase, effective Jan. 7, follows an announcement this month by FedEx’s chief rival, United Parcel Service Inc., that its ground shipping rates would go up by 3.5% on that date. Atlanta-based UPS also is increasing rates for overnight and two-day express services by 4%.

FedEx Express, the Memphis-based company’s air cargo subsidiary, will raise rates about 3.5% for shipments within the U.S. and to other countries. Shares of FedEx were off 89 cents to $45.37, and shares of UPS were down 8 cents to $54.51, both on the New York Stock Exchange.