Which companies are most affected by fuel? Who really bears the increase in fuel costs? How much do they pass on? What companies are most prone to cost increases due to shear volumes of usage?
How about companies like UPS and Fed Ex Air, talk about market power and vehicles. Fed Ex and Ups are approaching 35,000 vehicles each. How much fuel is that? It is so much they can afford to look at alternative sources and fund R and D projects to reduce their costs in fuel. UPS recently decided to put in Hydrogen stations at every terminal for their double and triple truck units.
Fred Smith, Chairman of the Fed Ex Companies said that if a company could deliver a vehicle that would use 50% less fuel and 90% less emissions he would order 19,000 of them. He lied they are now ordering 35,000. The company grew a little between the offer and the accomplishment. The free market is finding ways to deal with the issues in the flow of fuel. It does not take long on a busy corner in a busy city to see that one in three vehicles is a business or a government vehicle. A school bus, cable installer pick-up, limousine, post office LLV (new jeep), dog groomer, meter reader, taxi, car wash guy, telephone company van, garbage truck, shuttle bus, pizza delivery car, package delivery van, rent-a-car, police car, armored car or a hot dog car towing a cart. This is before we even discuss the fact that in many households there are as many registered vehicles as members of their family, including the family dog or cats.
America