FedEx, the American express giant, will raise freight rates by an average of 6.9% from next year.

CTOnews.com, September 24 (Xinhua)-- US express giant FedEx has announced plans to raise freight rates by an average of 6.9% from January next year in response to a slowdown in the global express business, according to the Wall Street Journal.

The price increase comes days after FedEx slashed its profit and sales forecasts. It is worth mentioning that the price increase this time is higher than that in previous years. FedEx raised freight rates by an average of 5.9% last year, rising by more than 4.9% for the first time in eight years.

CTOnews.com learned that the plans were part of FedEx's first-quarter results, which also revealed other cost-cutting plans.

FedEx said it expected to save $2.2 billion (about 15.664 billion yuan) to $2.7 billion (about 19.224 billion yuan) this fiscal year as a result of plans last week to ground some aircraft, suspend Sunday delivery and close some offices. The company also plans to save an additional $4 billion (28.48 billion yuan) a year from operations.