Thursday, January 29, 2015

Take on the UPS fuel surcharge

As part of my responsibilities at work, one of the things I am tasked
with is the cost of shipping. Shipping is one of our largest yearly
expenditures as we are a company which sells and the. ships a physical
product. A few years ago, we got a letter from UPS that because of
then rising cost of fuel, we would be getting hit with some kind of
fuel charge, one that has climbed all the way to 5% of the total price
of the shipment. These added costs and charges are just a way to
raise rates without actually raising rates so that shipping companies
can still show lower published rates to their customers and makes it
more difficult to cost compare

We were told that this surcharge was only because of the additional
cost of fuel but as gasoline has dropped from highs in the mid $4
range to well below $2 in many states, it's been interesting that UPS
had done nothing about their surcharge, one they claimed was necessary
because of the prices at the pump

I'm sure that somebody will bring up that UPS might buy gasoline in
futures and are thus tied to higher prices now, but they had no issue
raising prices as soon as gas went up. Even if so, if they ever do
decrease this surcharge or rightfully eliminate it, I would then
expect them to honor the lower fuel prices as they would have bought
futures at the present rate, too.

So let's make this clear and simple.. UPS, give me back my 5%. Not
just moving forward but for all the shipments we've made since gas
prices have been falling

4 comments:

Mr. R. Lee said...

You say, "I want my money back," and yet, if your company gets its money back, unless you are a significant shareholder, you won't be getting any personal money back from any fuel surcharge reimbursement.

That shows that your employer has been successful in the great trick to keep down the masses: convincing its employees to safeguard the company's interests as if those interests were the employees' own, even though all that is happening is that the boss is being made richer.

That is the opposite of Marxist class struggle. It is an acknowledgement of the total victory of capitalism over class struggle and how the rich get richer at the expense of both the poor and the middle class. It is the greatest trick the devil ever pulled.

Of course, if you are a substantial owner of the company, never mind everything I just wrote here.

Signed,
A Business Owner Looking for Loyal Employees Who Can Make Me Richer While I Surf Online Porn and Play Fantasy Sports

Mr. R. Lee said...

Also, have you considered switching carriers? You can use the threat of switching to FedEx to negotiate a better rate with your UPS account representative that waives the fuel surcharge (and maybe goes even lower to make up for the excess fuel surcharges now that fuel prices have dropped).

Your update also gives me an idea for a class action lawsuit against UPS. Airlines get sued in class actions for these unilateral surcharges -- fuel or otherwise -- that they put on consumers all the time on top of ticket prices. I don't see why those same principles wouldn't apply to claims against a carrier like UPS...

Righetti said...

that's why we're moving all our business to DHL recently

Mr. R. Lee said...

Larry Hillblom, lol!