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

cheryl

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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.
 
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