Are FedEx And UPS Padding Profits? Or Just Ticking Off Customers?

[cheryl]

Are FedEx And UPS Padding Profits? Or Just Ticking Off Customers? - Seeking Alpha

Summary

• FedEx announced a new fuel surcharge which will be added to shipping costs, despite the 24% drop in diesel fuel over the past year.

• With shipping costs higher heading into the holiday season, retailers will likely pass higher costs on to customers who in turn will have less purchasing power.

• While both FedEx and UPS are trading at valuations below recent peaks, we're passing on an investment as the fuel surcharges could cause public backlash against these companies.

 

[Brownslave688]

Public backlash which will cause them to turn to who?

 

[Operational needs]

Padding profits.

 

[bbsam]

Both