Gas prices, surcharges, commit guarantees

Time for change

Well-Known Member
No they're not.



You do realize that UPS does not pay for fuel at the current price.

What they're paying for fuel now, when it's close to a buck a gallon, is it same price they payed for fuel last month when it was $2 a gallon.

While I'd probably be the last person to defend UPS, maybe you might want to do some research before you make a statement that is not true.
Ok Corky, I’m sure prices will go down as soon as they are paying the current gas prices.
 

Mugarolla

Light 'em up!
Ok Corky, I’m sure prices will go down as soon as they are paying the current gas prices.

Do you even know when their fuel contract is up? When it is renewed, the prices could again be around $2/gal.

The fuel surcharge offsets what they are paying for fuel right now, not what they "might" be paying for fuel in the future. Apparently you know nothing about running a business and making a profit.
 

rod

Retired 22 years
No they're not.



You do realize that UPS does not pay for fuel at the current price.

What they're paying for fuel now, when it's close to a buck a gallon, is it same price they payed for fuel last month when it was $2 a gallon.

While I'd probably be the last person to defend UPS, maybe you might want to do some research before you make a statement that is not true.
I don't know how it works today but UPS used to sign contracts with the fuel companies for a set price. Lots of times it ended up being more that the current pump price. About the only good thing they got out of the contracts was a guarantee that UPS would continue to receive fuel if there was a shortage---------but I really doubt that would have been the case if push came to shove. The oil companies are way more powerful than UPS.
 

Mugarolla

Light 'em up!
I don't know how it works today but UPS used to sign contracts with the fuel companies for a set price. Lots of times it ended up being more that the current pump price. About the only good thing they got out of the contracts was a guarantee that UPS would continue to receive fuel if there was a shortage---------but I really doubt that would have been the case if push came to shove. The oil companies are way more powerful than UPS.

It also keeps them from an unexpected cost should fuel prices skyrocket.

They know exactly what they are going to pay for fuel for the life of the contract and budget for it accordingly no matter the current price.
 

Boywondr

The truth never changes.
It also keeps them from an unexpected cost should fuel prices skyrocket.

They know exactly what they are going to pay for fuel for the life of the contract and budget for it accordingly no matter the current price.
What happens to the jet fuel surcharge when a company moves the air pkgs by truck instead of a jet like the invoice says?
 

Boywondr

The truth never changes.
The invoice does not specify mode of transport. Nice try, thanks for playing.
When it's next day air you get charged twice the fuel surcharge as the ground shipments. The invoice does reflect that knucklehead...and I'm not playing.

Think before you post if your brain actually touches your brain stem.
 

UpstateNYUPSer(Ret)

Well-Known Member
When it's next day air you get charged twice the fuel surcharge as the ground shipments. The invoice does reflect that knucklehead...and I'm not playing.

Think before you post if your brain actually touches your brain stem.

Which part of "UPS will get it from Point A to Point B to arrive at it's guaranteed commit time in the most cost efficient manner possible" are you having difficulty with?
 

Boywondr

The truth never changes.
Which part of "UPS will get it from Point A to Point B to arrive at it's guaranteed commit time in the most cost efficient manner possible" are you having difficulty with?
If I'm going to pay for jet fuel you're gonna send it by jet or you're going to refund me the difference between the ground system surcharge and the surcharge for moving it by the air system.

You are either pretty ignorant, a troll stirring up trouble, or just plain dumb. Or all of the above.
 

Boywondr

The truth never changes.
To explain it further to you I already paid a large price for the early delivery commit. The company says it's going to charge me 18% for the jet fuel surcharge and then moves it by the ground system instead, which is at 9% fuel surcharge, then I should be refunded the difference. I paid for that package to be delivered at 10:30 a.m.. It has nothing to do with the extra charge that they tack on for fuel. Wake up. You're freaking stupid.
 

Mugarolla

Light 'em up!
What happens to the jet fuel surcharge when a company moves the air pkgs by truck instead of a jet like the invoice says?

That's a different discussion.

I just explained that UPS does not pay the current price for fuel, they contract the fuel for a certain price for the length of the contract.
 

cosmo1

Perhaps.
Staff member
When it's next day air you get charged twice the fuel surcharge as the ground shipments. The invoice does reflect that knucklehead...and I'm not playing.

Think before you post if your brain actually touches your brain stem.

I shouldn't even take the time to reply to you, mostly because it pains me to agree with Dave.

I used to drop off NDAs to a bank branch I passed by on the way to my route. Those NDAs originated from the main office in the town our center is in, twenty miles away.

I'm sure UPS didn't charter any sort of aircraft to move them. Like every other local pickup/delivery, they sat overnight in the building.


Knucklehead.
 
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