AFMS

Parcel shippers to feel more fuel surcharge pain

Time was that fuel surcharges were straight pass-through levies from the carriers to their customers. Surcharges accurately reflected a carrier’s fuel costs. Indices that set the surcharges were adjusted up or down depending on the direction of diesel and jet fuel prices.

Those days are long gone. Today, carriers routinely arbitrage fuel prices and surcharges to wring every last revenue dollar out of their shipments. In the parcel-delivery sector, which is still dominated by FedEx Corp. (NYSE:...

https://www.freightwaves.com/news/parcel-shippers-to-feel-more-fuel-surcharge-pain

Will Postal Service parcel rate hikes cause a shipper rethink?

The U.S. Postal Service has emerged, bloodied and more than a bit bowed, from the most difficult year in its long history. But beyond the COVID-19 pandemic, the presidential election and the tussles with former President Donald Trump lies an existential crisis for the Postal Service: how to remain viable when most of the macro-trend winds are blowing in its face.

First-class and marketing mail, the traditional cores of the Postal Service, continued their secular declines in 2020, a downward...

https://www.freightwaves.com/news/will-postal-service-parcel-rate-hikes-cause-a-shipper-rethink?

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