I will be selling a rod and reel soon and I looked into what it would cost to ship them.  Here is about what it would cost me to ship it from Indiana to Florida using the UPS Ground Business rate.

Tube= $5 for a 7' tube

Insurance= ~$4 for $250

Shipping= $17 for 2lbs

So total, that's $26.

I have always questioned the $50 or whatever amount needed to pay upfront for the delivery of a new rod under warranty but after pricing it myself, I understand why Loomis and St. Croix charge the prices they do.  I always thought the rods had a high price and that a replacement was figured into the cost.  So when you think about it, if you break your rod once or even twice, it's not such a bad deal.  

Yes, it's fair.  And in Loomis's case, they require the broken rod be returned so you are actually only paying shipping both directions under the Xpeditor warranty.

Your shipping prices also vary by destination and place or origin so sometimes it's a few bucks less and other times it's a few bucks more.