Rising internal costs push FedEx to raise shipping prices.
FedEx CFO Alan Graf told the Wall Street Journal that the cost of e-commerce deliveries will most likely see a spike in an effort to offset the cost of ground shipments. As a result of a jump in e-commerce over the holidays, FedEx’s Q3 revenue from its e-commerce-dominated ground unit rose 30 percent to $4.41 billion.
Despite that increase, however, the company’s ground-shipping income fell from $559 million to $557 million due to higher costs from the company’s network expansion and peak holiday demand, the company reported last Wednesday.
