Are FedEx And UPS Padding Profits? Or Just Ticking Off Customers?

Discussion in 'The Latest UPS Headlines' started by cheryl, Oct 9, 2015.

  1. cheryl

    cheryl I started this. Staff Member

    Are FedEx And UPS Padding Profits? Or Just Ticking Off Customers? - Seeking Alpha

    Summary
    • FedEx announced a new fuel surcharge which will be added to shipping costs, despite the 24% drop in diesel fuel over the past year.
    • With shipping costs higher heading into the holiday season, retailers will likely pass higher costs on to customers who in turn will have less purchasing power.
    • While both FedEx and UPS are trading at valuations below recent peaks, we're passing on an investment as the fuel surcharges could cause public backlash against these companies.
     
  2. Brownslave688

    Brownslave688 You want a toe? I can get you a toe.

    Public backlash which will cause them to turn to who?
     
  3. Operational needs

    Operational needs Well-Known Member

    Padding profits.
     
  4. bbsam

    bbsam Moderator Staff Member

    Both