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FedEx Hikes Shipping Prices

The rates will rise 4.9%, matching a move made by rival UPS.
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Shares of


(FDX) - Get FedEx Corporation Report

climbed 2% Friday after the shipping giant instituted another price hike.

The Memphis, Tenn.-based company said it's bumping up 2008 standard list rates for its ground and home-delivery shipping services by an average of 4.9%.

Last month, FedEx raised the price on its express services by that same amount.

All of the new rates will take effect Jan. 7.

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The move comes as FedEx is being squeezed by rising fuel costs and a decline in less-than-truckload freight. Two weeks ago, the company

lowered its earnings forecast for the current quarter.

Chief rival


(UPS) - Get United Parcel Service Inc. Report

also instituted a 4.9% price hike on ground shipping earlier this month.

Shares of FedEx were adding $2.16 to $98.35 in recent trading.