Oil Prices Fall To Lowest Level Since 2004
http://news.sky.com/story/1617848/oil-prices-fall-to-lowest-level-since-2004
http://news.sky.com/story/1617848/oil-prices-fall-to-lowest-level-since-2004
UPS has got to be loving this
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UpstateNYUPSer(Ret)
Well-Known Member
UPS, like most other major transportation companies, purchases fuel futures but, yes, they are saving a ton of money with the lower fuel prices.
olroadbeech
Happy Verified UPSer
yes, but they have not rescinded their fuel surtax. bad company . bad bad bad.
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.
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.
barnyard
KTM rider
That was because diesel prices are down, but both raised the surcharge.
FrigidFTSup
Resident Suit
I'm sure the 14 people who still go on MSN were really fired up.
worldwide
Well-Known 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."
"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."
olroadbeech
Happy Verified UPSer
BS.
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.
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???
PASinterference
Yes, I know I'm working late.
Aw come on. It sounded so purdy.
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.
Brownslave688
You want a toe? I can get you a toe.
Actually it's pretty simple economics.
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.
Bubblehead
My Senior Picture
The world is getting smaller, not bigger.
This could be the next class action lawsuit against UPS and FedEx.
Brownslave688
You want a toe? I can get you a toe.
The world is the same size as far as I know.
UpstateNYUPSer(Ret)
Well-Known Member
...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...
upschuck
Well-Known Member
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.
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.
