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Shouldn’t cheaper oil mean cheaper shipping?

aramex

Back in June when the price of a barrel of oil hit $142 it kinda made sense why Aramex sent the email below:

Thank you for using our SHOP&SHIP service. Our aim is to continuously enhance your shopping experience with us.

Aramex has found it necessary to increase the SHOP&SHIP rates to offset the increase in fuel price and operating costs. Effective July 1st 2008, our new rates will be as follows:

First ½ kg K.D. 3.000
Each additional ½ kg K.D. 2.500

We appreciate your understanding as this situation is completely outside the scope of our direct control since fuel represents a significant variable cost in the provision of transportation services.

Today the price of oil is around $40 a barrel so why hasn’t Aramex decreased their shipping prices yet?

33 replies on “Shouldn’t cheaper oil mean cheaper shipping?”

Exactly…I’m happy that finally someone raised this issue cuz I was thinking of this 2 months ago when the oil price reached $60/barrel. Now the oil rices around $40/barrel and still nothing happened.

They have no excuse of not dropping their shipping prices now as they raised them 2 or 3 times this year.

I totally understand that not just their fuel costs increased, but also operational costs has increase as well. But i also know (as me being Supply Chain engineer) and from what Aramex mentioned in their email that:

“…since fuel represents a significant variable cost in the provision of transportation services.”

Then i conclude that there is absolutely no reason of not lowering their prices now.

-Thanks

Two things:

No competitor has decreased their prices, so as long as no one does the first move it’ll never happen. Aramex is targeted towards the Middle East, and there is no real competitor at present, so people won’t have many choices.

Second is to achieve one of the main aims of a business, to increase added value.

Keep using them, and nothing will change.

Stop using them, something will have to change……if not lower prices, maybe better service. but something will change.

maybe it’s because of a fiscal year thing? Maybe they had a contract that was established within the time of the high oil prices, so until they get a new contract with the low oil prices, they might still charge high prices.

CREW THEM the next time i am getting something on line is me going to USA and coming back with the things i want 😛

Companies in the middle east never lower their prices once they have jacked them up. Its just like the rent situation here. All the apts and villas increased their rents by 200 – 400 KD and even though they are now empty and rotting, the landlords wont bring down the prices again. When it comes to believing that we are in a recession…they all become deaf and dumb.

monkeys…

Well, people are quiet and aren’t really doing anything about it. Of course no company is going to lower the prices. No one is complaining, even if there was anyone, they would be 10/100.
The government isn’t doing anything about it anyway (do we even have one? lol).
Don’t expect anything to change in the Arab world, as long as the people eat, drink, sleep, and nothing else.

Ushopweship is simply awful. Downright unprofessional, expensive, and not worth the trouble. They take FOREVER with shipments, no tracking (no accurate tracking that is). They have blamed me for their OWN mistakes, lost shipments, overcharged me and are impossible to get ahold of by email or phone. I prefer Aramex or DHL. They are expensive and cost the same, but are far more professional by comparison.

They are really bad and I left Aramex to try them out. I have since gone BACK to Aramex and am glad I did.

I sent a letter to Aramex but had no response.
I sent it short after it fell below 100$ and they didn’t respond.
My response was simpler i stopped using them.
Recently Dhl became cheaper and it cost less shipping direct when its allowed.

Aramex is just another lousy company that think they are operating in the 1930s and that people are ignorant and will continue to use them.

Next you will hear them complaining about slow-down in business due to ECONOMY SLOWDOWN and CREDIT CRUNCH forgetting its their stupid slow and expensive service has anything to do with that.

All of these local shipping companies are very slow. At least if you use FedEx or other foreign owned companies they treat their workers well and the service is usally very good. On the surface they appear cheaper. but if you look at the time wasted dealing with these other companies the extra funds the international companies charge is worth it.

Aramex should have never increased charges for local deliveries, Kuwait has subsidised fuel….enough about that…

As for all the companies they are not going to lower prices until they make up for the profits lost in the stick markets. Let’s be real, the world blames the U.S. for the world recession, but who invested in those risky financial instruments???

The bottom line is that greed is still king….

I also have a bad experience with ushopweship they lost my shipment and when i e-mailed them, they told me that they’ll pay me 100 USD as a compensation and my shipment costs about 450 USD, So I’d stay clear of them and stick with aramex. Although your absolutely right about the high prices.

Mark,

Why not you write a letter and you post it here then we would send the same letter to their email, kinda of pressure.

Just use DHL’s Easy Shop. first half kg is 3.500 KD and every additional KG is 2.500. Lifelong subscription is 10 KD only.

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