FedEx announced August 29 that it would be raising its shipping rates and customs clearance service fees on imports starting January 1, 2024.

FedEx shipping rates are expected to grow by an average of 5.9% for U.S. domestic, export and import services, the company said in a statement. The organization will be increasing its shipping rates for its Ground and Home Delivery business units by 5.9% as well, according to Reuters.

Though FedEx Freight Shipping rates will grow by an average of 5.9% to 6.9%, those new rates will only apply to shipments within the U.S. the company said.

"The price adjustments reflect incremental costs associated with the current operating environment," the company said in a statement.

The multinational shipping business has been attempting to increase its profitability and previously outlined a plan in 2022 to cut $4 billion in costs by the end of the 2025 fiscal year.

During the previous fiscal year, FedEx cut about 29,000 jobs, retired 19 planes, closed down some offices and limited Sunday deliveries.