Fed-Ex 3rd quarter earnings

It will be fine

It will be fine

Well-Known Member
bacha29 said:
Reports came out yesterday but quickly taken down that at an FXG terminal ( I won't disclose the location) management conducted a surprise vehicle inspection whereby they tagged out of service 74 trucks for various vehicle condition defects.
Keep in mind that they are going to buy back stock in a effort to reduce the number of shares outstanding in order to make operating results look better.
At the same time however they expect to in the end be one step removed from being completely out of the air express business focusing on lower margin ground freight business while at the same time are projected to triple their earnings per share in 5 years Expect them to drive harder bargains and take measures that up to that point would not have been expected in order to accomplish that feat.

Given the news if you're a nonunion employee or a heavily leveraged contractor especially one operating in a slow growing or economically depressed area you might want to think about vacating this sector of the economy the moment exit terms you could live with comes along.
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IMG_3511.gif
 
B

bacha29

Well-Known Member
Artee said:
Remember a handful of years back when the ground margins were 17-20%+ and were carrying the Express side. Back then Express had like a 4-5% margin and they wanted to be seeing 10%. For 20 years Express has been counting on that postal contract to help keep Express alive. Looks like USPS might be bailing and moving their mail with others. In January our ramp is losing 1 of our two inbound planes and possibly dropping down to the smallest 757 for our outbound. Three years ago out outbound was an MD-11.
Click to expand...
What analysists are pointing out is that manufacturing is running back to the US as fast as it can get here ahead of an the long expected Chinese invasion of Taiwan. In fact the the air force is reopening the Tinian Island airfield and it's 8000 foot runways it abandoned shortly after the end of World War II.

The expected result is a significant drop in air freight demand and analysists believe that this is what FDX is preparing for in an effort to hold onto as much of it as possible of what will remain they plan of shifting it onto Ground contractors.

Now for somebody like IWBF and what he believes to be high mileage routes.....15 miles a day (lol).. it might be a real challenge to get his air freight there in time to get on with his ground rides. But, for middle and rural America where 215 miles and up daily routes are still commonplace the question is will contractors out there have to release his ground runs at 8AM then send an air freight truck out at 11AM to run over the exact same area and will FDX pay for that second truck?

Managers at the terminal I was at tell me that they are being told that the 160 mile one way ground trip including a stop to a terminal up north from the international airport will make the ground sort at their terminal in time.....They just rolled their eyes.
 
zeev

zeev

Well-Known Member
Express air freight is way down already and this small operation has carried the Express operation for years. Small stations like in Wyoming have never made money. My prediction is only heavyweight will continue to try and make service. Small package will be tossed on the Ground pile and delivered whenever.
 
Thebrownblob

Thebrownblob

Well-Known Member
Gone fishin said:
I think we’re both in trouble , Amazon is on the move and the economy sucks. Glad I’m about done
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Amazon only delivers the stuff they ship themselves. They do not make pick ups from businesses outside of their own ecosystem. They are definitely a threat, but they are not doing the exact same work We are.
 
IVE GOTTA PACKAGE 4U

IVE GOTTA PACKAGE 4U

*
Thebrownblob said:
Amazon only delivers the stuff they ship themselves. They do not make pick ups from businesses outside of their own ecosystem. They are definitely a threat, but they are not doing the exact same work. We are.
Click to expand...
But many other startup companies are

Do you remember Factor?
We used to deliver them then they switched to FedEx ground

Now they have their own delivery vehicles and are delivering Factor and hellofresh
 
Thebrownblob

Thebrownblob

Well-Known Member
IVE GOTTA PACKAGE 4U said:
But many other startup companies are

Do you remember Factor?
We used to deliver them then they switched to FedEx ground

Now they have their own delivery vehicles and are delivering Factor and hellofresh
Click to expand...
Never heard of factor, definitely heard of HelloFresh. A lot of these start up companies have the idea that they can have a network make these deliveries and maintain a fleet of vehicles and employees and soon find out it’s not exactly as easy as they thought.
 
IVE GOTTA PACKAGE 4U

IVE GOTTA PACKAGE 4U

*
Thebrownblob said:
Never heard of factor, definitely heard of HelloFresh. A lot of these start up companies have the idea that they can have a network make these deliveries and maintain a fleet of vehicles and employees and soon find out it’s not exactly as easy as they thought.
Click to expand...
Factor was like hellofresh they came in a black box but it was special diet food
 

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