United Parcel Servicereason 04 of 4it can hold its price and keep the customerderived 2026-09-11accession 0001628280-26-053249
UPS's weekly-resetting fuel surcharge mechanism functionally passes through volatile jet and diesel costs to customers with minimal lag, insulating margins from commodity swings that could otherwise compress earnings. This contractual pass-through capability reflects embedded pricing power in a capital-intensive, fuel-exposed business.
the thesis · admitted · the reason above is the thesis, not printed twice
no findingread · nothing bore on it
It held on this filing. No finding was written because nothing in it bore on the reason — the sentences it was read against are below.
the evidence · every sentence checkedthree sentences · whole, uncut
the claims it rests on
“We apply a fuel surcharge on our domestic air and ground services that adjusts weekly and is designed to help offset fluctuations in fuel costs resulting from fuel price volatility.”
“Fuel surcharge revenue increased approximately $575 million for the quarter (up approximately $721 million year to date) primarily as a result of higher fuel costs and surcharge rates due to the Middle East conflict, partially offset by the impact of lower volume.”
“Most of our fuel surcharges adjust with fuel prices on a weekly basis and are intended to mitigate the impact of fuel price volatility.”