FedEx CEO: We don’t hedge

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FedEx CEO Fred Smith said at the recent Energy Security Leadership Council conference that FedEx does not hedge its energy buying, but incorporates energy prices into the rates it sets on customers. The last three or four years, that has meant raising rates, he said.

“We don’t hedge. We don’t try to beat the market,” Smith said. “We simply pass it along.”

Smith also said FedEx’s staff economist projects a 2.7% GDP for 2007 and 2.9% GDP for 2008. “There’s definitely not as robust an economy this year as there was last year,” Smith said.