UPS shipping going up and gas prices down??

Discussion in 'Off Topic [BG]' started by Eric Swaim, Jun 2, 2020.

  1. Eric Swaim

    Eric Swaim GOD, U.S. MIlitary, Country Supporting Member

    Sep 21, 2004
    Murfreesboro, TN
    Anyone else notice shipping ground is up higher than it was in January 2020? I shipped a bass a month ago from Tennessee to Colorado and it was $123.00 and today I shipped a Carvin 5-string to California for $125.00 both from the UPS Hub. Gas prices are still rather cheap.

    Just food for thought
  2. viribus

    viribus Gold Supporting Member

    Jan 1, 2011
    Pacific Northwest
    I never actually learned to play very well
  3. Liko


    Mar 30, 2007
    DFW Metro
    1. It's not gas prices you should look at, it's diesel, which has not moved nearly as much as gasoline did. Demand for diesel, which is similar in alkane weight range to jet fuel (so diesel and jet fuel prices are interrelated), tends to be steadier, meaning prices are supply-driven, unlike gasoline which has significant supply and demand drivers behind pricing.
    2. That demand for diesel is currently driven in large part by cargo handling, which has skyrocketed even as passenger travel and nonessential retail shipping came to a screeching halt. Door-to-door residential small package delivery, which is UPS's bread and butter, shot through the roof during the COVID quarantines.
    3. Now, retail logistics are picking back up. Big-box stores typically have their own logistics networks (or long-term subcontracting deals), but SMB retail stock shipments are right in UPS's wheelhouse, and those are picking up while residential package delivery hasn't abated. UPS has only so many trucks and conveyor belts, so their pricing algorithms are as much about restricting influx of packages to control costs, as they are about charging the most the market will bear.
    4. For packages in the weight neighborhood of major pro audio components, including instruments and instrument amps, UPS has been one of the cheaper options of late. USPS doesn't really want anything to do with this weight/size class; their facilities and fleets aren't built for it. That means UPS or FedEx, and for what I've shipped through Reverb recently, UPS has consistently beaten FedEx on quoted rates. So, UPS has room to raise prices and remain competitive.
    TOOL460002 likes this.
  4. Eric Swaim

    Eric Swaim GOD, U.S. MIlitary, Country Supporting Member

    Sep 21, 2004
    Murfreesboro, TN
    Next time a guy asked what shipping will run to California, we will start at $125.00 and if it's less I will refund the difference.
  5. Is there a typo in there or you get it back to front or what? Last I knew it was a lot further from Tennessee to California than Colorado.
  6. Michedelic

    Michedelic MId-Century Modern

    Sometimes there’s little logic to logistics; it depends on how things are routed and where the distro hub is located.
  7. I’ve been shipping a lot of guitars and heavy, large boxes lately, with UPS and FexEx. They haven’t gone up at all; for about the last year. I don’t even have an account with them. FedEx prices have gone down across the board. They made an announcement stating that earlier this year. UPS is offering 40% off now. I usually just ship through Reverb, or eBay and use their shipping portal. They both give discounts. A lot of the time, using the proper (lightweight) packing materials makes a LOT of difference in weight. That’s where it will cost you the most. Paying very close attention to sizes makes a big difference. Cutting down by one inch can sometimes cut your cost by 1/3. Odd sizes and shapes will cost extra. Hope this helps.
    Last edited: Jun 2, 2020
    MJ5150 likes this.