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Fuel prices are plunging, but that hasn’t stopped FedEx and United Parcel Service from charging customers a fuel surcharge.
The price of diesel is down 30% from a year ago, but UPS still charges customers a 5.25% fuel surcharge on top of whatever it would cost to ship a package. FedEx’s fuel surcharge is 4.25% for ground shipments and 2.75% for express shipments.
The surcharges have earned both companies a place on Consumer Reports’ list of “naughty” companies for Christmas 2015.
DHL Express U.S. CEO Greg Hewitt discusses his outlook for the company, competition from FedEx and UPS, and holiday shipping plans. He speaks on “Bloomberg Markets.”
FedEx is confident it will successfully take over Dutch peer TNT Express following a failed bid by rival United Parcel Service (UPS) three years ago, the global courier service told CNBC on Tuesday.
“UPS had a different level of concentration of position in the market than FedEx does, so we’re very comfortable that our position in the market with TNT does not create an issue from a competitive standpoint,” explained David Cunningham, executive vice president and chief operating officer of FedEx Express, at the Asia-Pacific Economic Cooperation (APEC) CEO Summit.
The “white glove” delivery market is one of the fastest growing areas of e-commerce, in which drivers are required not only to deliver but unpack and install bulky items in customers’ homes.