UPS has got to be loving this

Discussion in 'UPS Discussions' started by BlackJack616, Jan 6, 2016.

  1. BlackJack616

    BlackJack616 Active Member

  2. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

  3. olroadbeech

    olroadbeech Happy Verified UPSer

    yes, but they have not rescinded their fuel surtax. bad company . bad bad bad.
     
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  4. PASinterference

    PASinterference Yes, I know I'm working late.

    They make more money with the fuel surcharge than they save with lower fuel cost. The fuel surcharge is a big time money maker.
     
  5. barnyard

    barnyard KTM rider Staff Member

    I am pretty sure that the fuel surcharge is based on $1.50/gallon diesel.
     
  6. olroadbeech

    olroadbeech Happy Verified UPSer

    in all fairness i am not sure how it works but there was a story on msn last month denouncing both UPS and Fedex for keeping the surcharge.
     
  7. barnyard

    barnyard KTM rider Staff Member

    That was because diesel prices are down, but both raised the surcharge.
     
  8. FrigidFTSup

    FrigidFTSup Resident Suit

    I'm sure the 14 people who still go on MSN were really fired up.
     
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  9. worldwide

    worldwide Active Member

    http://money.cnn.com/2015/11/23/news/companies/fedex-ups-fuel-surcharge/index.html

    "The companies said their fuel costs are determined by factors beyond prices at the pump. For example increased shipments to residential customers, due to online purchases, mean using more fuel. Making additional stops instead of delivering multiple packages to a delivery dock drives up fuel usage, said FedEx spokesman Jess Bunn. And residential locations often require more travel between stops than do business deliveries."
     
  10. olroadbeech

    olroadbeech Happy Verified UPSer

    BS.
     
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  11. PT Car Washer

    PT Car Washer Well-Known Member

    In other words even if fuel prices were zero, there would still be a fuel surcharge because of the cost of doing business.
     
  12. Bubblehead

    Bubblehead My Senior Picture

    I thought the company has recouped an enormous amount of miles, and in turn fuel, through the implementation of ORION???

    So, shouldn't that reduce or eliminate the fuel surcharge???
     
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  13. PASinterference

    PASinterference Yes, I know I'm working late.

    Aw come on. It sounded so purdy.
     
  14. Brownslave688

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

    It's based more on where you live. It takes more fuel to get to the sticks.
     
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  15. Brownslave688

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

    Actually it's pretty simple economics.
     
  16. Brownslave688

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

    The strong dollar has pretty much much knocked out any money we have gained through fuel savings.
     
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  17. Bubblehead

    Bubblehead My Senior Picture

    The world is getting smaller, not bigger.

    This could be the next class action lawsuit against UPS and FedEx.
     
  18. Brownslave688

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

    The world is the same size as far as I know. ;)
     
  19. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    ...which is why they also add residential and rural surcharges....I even think they add a surcharge if your shipment has two or more surcharges...
     
  20. upschuck

    upschuck Avatar bet gone wrong

    This is how fuel surcharges are computed.

    https://www.ups.com/bridge/fuelsurcharge.html

    Ground Fuel Surcharge

    UPS uses an index-based surcharge that is adjusted monthly. Changes to the surcharge will be effective the first Monday of each month. The surcharge will be based on the National U.S. Average On Highway Diesel Fuel Price as reported by the U.S. Energy Information Administration (EIA) for the month that is two months prior to the adjustment, rounded to the nearest cent. For example, the surcharge for February is based on the December National U.S. Average On Highway Diesel Fuel Price.