About this episode

Edward Burek and Marco Ferrara discuss the impact of fuel volatility on small parcel delivery and innovative pricing strategies.

Edward Burek of SmartKargo & Marco Ferrara of DeliverDirect talk about issues impacting small parcel delivery; fuel price reality; & keeping costs low & simple. IN THIS EPISODE WE DISCUSS: [02.04] An introduction to Edward and Marco, and their roles at SmartKargo and DeliverDirect. [03.07] An overview of DeliverDirect – who they are, what they do, and how they help their customers. [03.29] As the industry deals with ongoing fuel volatility, why Delta Airlines have a structural advantage other carriers don't have, and what it means in practice to have an airline like Delta running the middle mile for e-commerce shipments. "Fuel is the biggest cost with an airline but, because our passenger aircraft are flying around anyway, a lot of that fuel cost is absorbed – we're able to insulate and reduce what we're charging our customers." [05.52] As shippers see fuel surcharges, accessorial fees, and pricing complexity hit unprecedented levels, have surcharges stopped being about fuel and started becoming part of a business model? "There are a lot of carriers that are taking advantage of the market forces right now. A lot of businesses are built on surcharges... It's become a mechanism to…

Topics covered

• fuel volatility
• small parcel delivery
• pricing strategies
• surcharges
• e-commerce logistics

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