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[quote]QUOTE: Originally posted by jruppert I thought hedging was stockpiling fuel when the price is low? or is it buying a contract or option for future fuel at a certain price? Either way it sounds like somebody did not think long term and or did not want to spend the money in the short term. I feel a little hesitant to critisize though because I know very little about fuel markets. [/quote] JR- This is a BIG bungle. You are correct hedging is the purchase of futures contracts for diesel fuel or like arrangements with fuel suppliers not made through the futures markets. Look at how much money has been saved by the NS by hedging. Further, not to hedge if you are using the kind of fuel that UP is using in a rising fuel price environment is simply throwing money out the window. Look at all the negatives out there in the oil supply world and the rising price of oil as a result. Remember that we are just beginning the winter fuel oil season as well. Someone was asleep at the switch at UP and probably cost the company $millions in increased fuel costs. As a shareholder, considering this latest bungle, the absolute nightmare that UP has made of human resources planning and their scandalous loans to senior management so they could receive extra shares I am OUTRAGED!! LC
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