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Kurt K.
Reply with quote  #1 
Yep, instead of reducing shipping prices to reflect the lower fuel costs, FED EX and UPS both raise prices for 2015. (It's just a coincidence, they didn't plan on doing it together (yeah, sure, that's the ticket!))

Read it and weep. The only good part is that is doesn't seem to effect smaller card shipments (except that it deflects attention away from the expectation that prices should fall in proportion to their increases which were justified by higher fuel costs.) But don't worry, when fuel prices start to inch back to their higher rates, we can safely expect another round of shipping hikes using that as their excuse.

http://www.dailyfinance.com/2014/12/31/fedex-ups-recalculate-raise-rates/?icid=maing-grid7%7Cmain5%7Cdl25%7Csec1_lnk2%26pLid%3D592083
Tom Boblitt
Reply with quote  #2 
A 30 year UPS employee here......and I also used to own a The UPS Store....the 4-ish percent raise has been pretty consistent increase year over year the last 8-10 or so. Not sure I can justify the need for that large of an increase but the difference between UPS and FedEx of course is we have to make a profit and can't continue to borrow money against the goodwill of the American public. USPS shaved their $15B loss from last year down to $5-6B this year I think.....I'd assume few of us ship very much via UPS or FedEx when we are sending a few cards. And fuel prices make up a smaller proportion of our expenses than you would think. Wages, benefits, pensions make up the lions share of expenses. On this side of the fence though, it does sting a little when the prices go up like they do......
Anonymous
Reply with quote  #3 
Yeah, the UPS "fuel surcharge" is supposed to go up and down with the cost of fuel. But that doesn't stop them from playing with the baseline index. Gas is now at $50 a barrel, and yet the surcharge is still 8.5% extra. How low does it have to go to get NO surcharge? $1 a barrel?


It's not just those guys though. At Walmart, the generic 2.3 quart bottles of soda went from 50 cents to 75 cents, then 84 cents when fuel prices went up. Now that the oil prices have crashed, the soda prices remain the exact same. But when the prices rise, you know what will happen. It's like a game they play called "fuel the customer." Publix supermarket is the best at it. They raise the prices a few weeks before putting it on sale so they can slap a big sticker on the product later bragging about "25% off!" They think nobody notices, and sadly, most people do not.


Yeah, I know, it doesn't do any good to complain... but it sure beats thanking them for it!
Jon Hardgrove
Reply with quote  #4 
A 30 year user of UPS here.


UPS a few years ago started a "fuel adjustment clause" in the contract they have with users. When fuel costs go up, the adjustment goes up, and likewise when fuel prices are down, yes the adjustment DOES go down.


Cannot speak for the other carriers, as we haven't used them for many years. As we have some old paper (mostly older catalogues) to sell on ebay this year, we are going to again try the usps.


In 1974, we shipped one pound packages for $6.00. In 2014, it was $15.00. Google says gas prices in 1974 were 55 cents/gallon.


Jon.
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