Wednesday, January 23, 2008

Fuelish Surcharges

The PAEA permits the Postal Service to escape the law's inflation-linked limit on USPS shipping prices if "extraordinary or exceptional circumstances" come about -- but that would take something nearly cataclysmic, like a dramatic and unexpected surge in fuel prices, perhaps brought about by a geopolitical crisis in the Middle East.

The drip-drip-drip in incremental hikes in prices at the pump, on the other hand, won't give the USPS a reprieve.

Compare that with the variety of surcharges that FedEx, UPS and DHL regularly pass-on to their customers, including a fuel surcharge pegged to rising fuel prices.

The Motley Fool focused on the impact of these extra charges and highlighted the difference they make in shipping a package via USPS versus its competitors. It also noted that FedEx and UPS and FedEx last year raised their rates an average of 4.9% for their ground and express services.

The Postal Service has a pretty nifty set of tools on its website to help consumers get a handle on how much they'll save and avoid those nasty surcharges by shipping with the Blue Eagle, versus UPS and FedEx. The site also provides You-Tube-like-video from small biz owners testifying to the savings they reaped through partnering with USPS. Smart marketing, USPS.

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