(CNN) — FedEx will raise ground and express shipping rates by an average of 6.9% next year, the company said Thursday. Freight rates will increase by an average of 6.9% to 7.9%.
Both mark an increase from FedEx’s rate hikes for this year.
Last week, FedEx warned that a global recession could be coming, as demand for package deliveries around the world tumble.
Shares of FedEx plunged 21% last Friday, — the biggest one-day drop in its history — after the company warned that a slowing economy will cause it to fall $500 million short of its revenue target.
The weakening global economy, particularly in Asia and Europe, has hurt FedEx’s express delivery business. The company said demand for packages weakened considerably in the final weeks of the quarter.
FedEx said it is responding by reducing flights and temporarily parking aircraft, trimming hours for its staff, delaying some hiring plans and closing 90 FedEx Office locations as well as five corporate offices. It is also cutting $500 million from its capital expenditure budget for its fiscal year, which runs through May of 2023, trimming that spending to $6.3 billion.