Rising gas prices fuel e-tailer anxieties

Iria · Aug 19, 2005, 03:56 PM

Online retailers are starting to worry about spiking oil prices, which briefly reached $67 a barrel last week and are elevating shipping costs for some companies.

Peapod, the Skokie, Ill.-based online service that trucks groceries to customers, has held off on raising delivery fees, but is paying close attention to the trend in oil prices. "For now, we're riding it out," said Elana Margolis, a company spokeswoman.

Brief spikes in oil prices don't always translate into higher pump prices, of course. But by-the-barrel prices have been inching relentlessly upward for five years with a big jump last fall, and shipping companies used by e-commerce sites have responded by charging more. UPS, for instance, says its fuel costs leaped 45.3 percent between the second quarter of 2004 and the same time this year.

Both FedEx and UPS have imposed special fuel surcharges on top of normal delivery fees. "It's a monthly adjustment that we do based on a rounded average of the U.S. Gulf Coast spot price for a gallon of kerosene jet fuel," FedEx spokeswoman Darcie Goodwin said. "It's to help customers respond to the changes in the fuel price so that they can forecast and plan."
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Aug 19, 2005, 03:56 PM	#1
Iria DriverHeaven Extreme Member Join Date: Apr 2004 Posts: 7,275 Rep Power: 87	Rising gas prices fuel e-tailer anxieties Online retailers are starting to worry about spiking oil prices, which briefly reached $67 a barrel last week and are elevating shipping costs for some companies. Peapod, the Skokie, Ill.-based online service that trucks groceries to customers, has held off on raising delivery fees, but is paying close attention to the trend in oil prices. "For now, we're riding it out," said Elana Margolis, a company spokeswoman. Brief spikes in oil prices don't always translate into higher pump prices, of course. But by-the-barrel prices have been inching relentlessly upward for five years with a big jump last fall, and shipping companies used by e-commerce sites have responded by charging more. UPS, for instance, says its fuel costs leaped 45.3 percent between the second quarter of 2004 and the same time this year. Both FedEx and UPS have imposed special fuel surcharges on top of normal delivery fees. "It's a monthly adjustment that we do based on a rounded average of the U.S. Gulf Coast spot price for a gallon of kerosene jet fuel," FedEx spokeswoman Darcie Goodwin said. "It's to help customers respond to the changes in the fuel price so that they can forecast and plan." __________ Read More / Source: News.com