FedEx Hikes Shipping Prices

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

FedEx

(FDX) - Get 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.

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

(UPS) - Get 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.