Fed Ex to raise rates, close some offices next year

FedEx will raise ground and express shipping rates next year, as well as close some office locations.

Your shipping costs will increase by an average of 6.9% next year, the company said Thursday. 

Last week, FedEx warned that a global recession could be coming, as demand for package deliveries around the world tumble and the cost of fuel stays high.

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, is the reason Fed Ex is reacting 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.