Come 2023, it’s going to cost more for promotional products companies – and essentially everyone else, too – to ship through FedEx.

The Memphis, TN-headquartered multinational shipping and delivery provider announced on Thursday, Sept. 22 that rates for its FedEx Express, FedEx Ground and FedEx Home Delivery services will increase by an average of 6.9%. Meanwhile, FedEx Freight rates will rise by an average of 6.9% to 7.9% depending on a customer’s transportation rate scale.

The heightened rates go into effect on January 2, 2023. The rate jumps are steeper than what FedEx charged to start 2022; then, rates rose by an average of 5.9%.

The carrier is hiking prices after its just-reported revenue and earnings came in below Wall Street expectations. CEO Raj Subramaniam blamed a deteriorating macroeconomic environment, and predicted a “worldwide recession.”

In addition to the rate hikes, FedEx is also undertaking measures to realize cost savings of $2.2 billion to $2.7 billion in 2023.

“We’re moving with speed and agility to navigate a difficult operating environment, pulling cost, commercial, and capacity levers to adjust to the impacts of reduced demand,” said Subramaniam.

A full breakdown of FedEx’s rate increases can be found here.

In addition to the average increases mentioned earlier, FedEx is also instituting a delivery area surcharge of $13.25 per package that will be applied to domestic package shipments destined to select ZIP codes within the contiguous United States that are designated as “remote.”

Also, come January 2, FedEx will increase the late payment fee to 8% for U.S. FedEx Express and FedEx Ground invoices not paid according to approved payment terms. See the FedEx Service Guide for more information about the late payment fee.

It’s been choppy waters lately for FedEx. Beyond disappointing on earnings, the delivery provider has faced pushback from some of its Ground contractors over issues like compensation.