Impact of Rising Energy Costs on Multiple Companies
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 23 2026
0mins
Source: NASDAQ.COM
- Travel Industry Pressure: With rising oil prices, travel companies like Carnival and JetBlue are facing increased operating costs, likely leading them to raise ticket prices or add fuel surcharges to protect margins, thereby impacting consumer travel expenses.
- Parcel Delivery Cost Increase: UPS and FedEx implemented higher fuel surcharges on March 2 and March 16, respectively; while this helps protect margins, consumers will ultimately bear the brunt of higher delivery charges, affecting overall consumer spending.
- Consumer Goods Manufacturers Under Strain: Companies like Procter & Gamble and Conagra Brands will face dual pressures from rising raw material and shipping costs, potentially resorting to shrinkflation strategies to cope with increased expenses, which will affect consumer purchasing experiences.
- Rising Electricity Costs: Increased natural gas prices will lead to higher electricity production costs, with utilities like Duke Energy passing these costs onto customers, further exacerbating operational costs for UPS and FedEx and impacting their service pricing.
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Analyst Views on UPS
Wall Street analysts forecast UPS stock price to rise
19 Analyst Rating
9 Buy
9 Hold
1 Sell
Moderate Buy
Current: 94.800
Low
80.00
Averages
107.06
High
126.00
Current: 94.800
Low
80.00
Averages
107.06
High
126.00
About UPS
United Parcel Service, Inc. provides a range of integrated logistics solutions for customers in more than 200 countries and territories. Its U.S. Domestic Package segment offers a range of United States domestic air and ground package transportation services. Its air portfolio offers time-definite, same-day, next-day, two-day and three-day delivery alternatives as well as air cargo services. Its ground network enables customers to ship using its day-definite ground service. UPS SurePost provides residential ground service for customers with non-urgent, lightweight residential shipments. Its International Package segment consists of small package operations in Europe, Indian sub-continent, Middle East and Africa, Canada and Latin America and Asia. It offers a selection of guaranteed day- and time-definite international shipping services. Its supply chain solutions consist of forwarding, logistics, customized third-party logistics and specialized cold chain transportation solutions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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