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Essay heading: Ups Facing Increasing Fuel Costs
 
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Issue: Business
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Date added: July 7, 2006
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No of pages / words: 6 / 1657
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These increases in operating costs would have been even higher, 27.3% from 2005 to 2006, had UPS not experienced gains from hedging this commodity. ANALYZE There are many possible strategies that UPS could utilize to cope with the escalating fuel costs. Given the size of UPS, the worldwide freight industry, and utter significance of not proactively addressing this issue (which is always an option), it seems that UPS has three prominent methods for combating this increase in operating costs...
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One way to achieve this goal is to use vehicles powered by alternative fuels or hybrid technology. While this would require substantial investment in the short-term, the effect would be a long-term fuel savings that is very likely to supersede the initial investment. In May 2007, UPS acquired 50 hybrid electric vehicles (HEVs) to operate in Atlanta, Dallas, Houston and Phoenix...
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