FedEx announced it will raise shipping rates beginning Jan. 2.

In its earnings report Thursday, the company said it would once again increase rates. FedEx Express, FedEx Ground and FedEx Home Delivery rates will go up by an average of 6.9%, while FedEx Freight rates will go up by 6.9%-7.9%.

The decision follows a news release from the company detailing preliminary earnings results that heavily underperformed by analysts' expectations. FedEx said declining global volumes and rising operating costs from inflation hit harder than expected and the company would pursue an aggressive cost-reduction plan in fiscal year 2023 to adjust operations.

Since 2012, FedEx package rates have usually increased by an average 4.9% annually. Following early effects of the pandemic that cost the company millions of dollars, rates were raised by 5.9% for 2021 and again for 2022. Now, rates are going up even more, making it the highest rate increase in at least 10 years.

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"We will monitor post-implementation stickiness," FedEx's Executive Vice President and Chief Customer Officer Brie Carere said in the company's earnings call Thursday. "But given the inflationary backdrop, we thought this was the right increase for the year."

With the new rates, a 1-pound package shipped up to 150 miles via FedEx Express Standard Overnight will cost $33.87 compared to the previous $31.22.

A full guide to the new rates can be found in the document posted on the FedEx website.

Niki Scheinberg is the FedEx and logistics reporter at The Commercial Appeal. She can be reached at monika.scheinberg@commercialappeal.com.

This article originally appeared on Memphis Commercial Appeal: FedEx shipping rates to increase in 2023: Here's how much