Fedex to lose 2 Billion

[59 Dano]

Why in gods name would the USPS guarantee volume?

You would obtain a guarantee a minimum level of volume (or payment in lieu of) to be able to adequately plan for staffing, equipment, revenue, etc. If the USPS doesn't want to, or can't, that's fine. They can take their business to UPS or someone else.

If there’s one thing in this industry that can’t be guaranteed… it’s volume. FedEx had built this mega daytime operation around flying planes full of postal and when the postal volume dropped, they had zero clue on how to adjust or consolidate flights and employee hours to adapt to the lower volume. UPS clearly took the contract without guaranteed money or volume.

LOL, my God.

You said it yourself: FedEx had build this mega daytime operation around flying planes full of mail. They were able to include some of their own deferred freight and it was great. The USPS freight subsidized the deferred FedEx freight that flew along with it. That isn't the case now. Much of that deferred freight can be trucked just as easily as it can be flown, and at a fraction of the cost. The rest can be shifted to existing PM flights.

The USPS has cut its air freight volume by 90% over the past three years. FedEx would need to overhaul that entire daytime operation in order to justify flying those volumes. It's easier and better for the bottom line to just let the contract expire if the USPS doesn't want to agree to a better contract. If UPS wants it, good for them. Perhaps they have enough excess capacity and they can absorb it. Don't know. Don't care.

 

[zeev]

What is the purpose of a 5 billion dollar buyback and Freddy and Raj selling their stock.

 

[MAKAVELI]

But Carol is smarter than Fred, so take THAT!

Well, they don't need contractors to make a profit.

 

[yadig]

You would obtain a guarantee a minimum level of volume (or payment in lieu of) to be able to adequately plan for staffing, equipment, revenue, etc. If the USPS doesn't want to, or can't, that's fine. They can take their business to UPS or someone else.



LOL, my God.

You said it yourself: FedEx had build this mega daytime operation around flying planes full of mail. They were able to include some of their own deferred freight and it was great. The USPS freight subsidized the deferred FedEx freight that flew along with it. That isn't the case now. Much of that deferred freight can be trucked just as easily as it can be flown, and at a fraction of the cost. The rest can be shifted to existing PM flights.

The USPS has cut its air freight volume by 90% over the past three years. FedEx would need to overhaul that entire daytime operation in order to justify flying those volumes. It's easier and better for the bottom line to just let the contract expire if the USPS doesn't want to agree to a better contract. If UPS wants it, good for them. Perhaps they have enough excess capacity and they can absorb it. Don't know. Don't care.

Do you really believe this nonsense?

 

[Aquaman]

You would obtain a guarantee a minimum level of volume (or payment in lieu of) to be able to adequately plan for staffing, equipment, revenue, etc. If the USPS doesn't want to, or can't, that's fine. They can take their business to UPS or someone else.



LOL, my God.

You said it yourself: FedEx had build this mega daytime operation around flying planes full of mail. They were able to include some of their own deferred freight and it was great. The USPS freight subsidized the deferred FedEx freight that flew along with it. That isn't the case now. Much of that deferred freight can be trucked just as easily as it can be flown, and at a fraction of the cost. The rest can be shifted to existing PM flights.

The USPS has cut its air freight volume by 90% over the past three years. FedEx would need to overhaul that entire daytime operation in order to justify flying those volumes. It's easier and better for the bottom line to just let the contract expire if the USPS doesn't want to agree to a better contract. If UPS wants it, good for them. Perhaps they have enough excess capacity and they can absorb it. Don't know. Don't care.

“FedEx would need to overhaul their entire daytime operation in order to justify flying those volumes”….. yes, that’s exactly what they should’ve done. And without the contract, they’re going to have to overhaul the entire daytime operation anyway. But to have SOME volume to move would’ve been better than none lol.

 

[zeev]

“FedEx would need to overhaul their entire daytime operation in order to justify flying those volumes”….. yes, that’s exactly what they should’ve done. And without the contract, they’re going to have to overhaul the entire daytime operation anyway. But to have SOME volume to move would’ve been better than none lol.

They have not lost 90% volume more FedEx b.s. by designated b.s. er

 

[bacha29]

They have not lost 90% volume more FedEx b.s. by designated b.s. er

I've seen more semi's on the interstate with USPS livery on them when in the past you almost to a truck saw USPS contractor owned units. With each passing day it looks more and more that the final FDX product will be as many of you have said it would be....A small box and LTL trucker that flies a little air freight every now and then with fewer shares outstanding and smaller public float but with higher EPS.
For all this to work they first have to get Ground contractors on solid economic footing and able to pay competitive wages and benefits. That however does not appear to be part of their strategy but rather the complete opposite.

 

[Aquaman]

I've seen more semi's on the interstate with USPS livery on them when in the past you almost to a truck saw USPS contractor owned units. With each passing day it looks more and more that the final FDX product will be as many of you have said it would be....A small box and LTL trucker that flies a little air freight every now and then with fewer shares outstanding and smaller public float but with higher EPS.
For all this to work they first have to get Ground contractors on solid economic footing and able to pay competitive wages and benefits. That however does not appear to be part of their strategy but rather the complete opposite.

FedEx has chosen not to compete in regards to pay & benefits. You’ll work here for what they pay or some other maroon will.

 

[bacha29]

FedEx has chosen not to compete in regards to pay & benefits. You’ll work here for what they pay or some other maroon will.

First they will have to capture that maroon and having experienced a taste of freedom they never will. When it comes to morons the supply of those varies from local market to local market but no question at least for the time being the socioeconomic underclass will continue to be exploited by FDX even if their productivity, reliability and workmanship quality is not very good.....Just as long as it's cheap.

 

[59 Dano]

Do you really believe this nonsense?

Let's try something different, like you offering an informed counterargument for a change instead of your usual non-contribution.

 

[59 Dano]

“FedEx would need to overhaul their entire daytime operation in order to justify flying those volumes”….. yes, that’s exactly what they should’ve done. And without the contract, they’re going to have to overhaul the entire daytime operation anyway. But to have SOME volume to move would’ve been better than none lol.

They don't have to overhaul much outside of diverting freight to trucks and PM flights.

 

[yadig]

Let's try something different, like you offering an informed counterargument for a change instead of your usual non-contribution.

I try to keep it honest and you keep putting your usual bs spin on it all. I really don’t care anymore to be honest and it seems you are still drinking the koolaid. What’s the announcement in the next 2 weeks? I’ve seen the memo so save me your usual “I’m making stuff up” and just answer the question.

 

[yadig]

They don't have to overhaul much outside of diverting freight to trucks and PM flights.

Dang I was hoping for a severance package !!

 

[59 Dano]

They have not lost 90% volume more FedEx b.s. by designated b.s. er

That info comes from the USPS.

 

[59 Dano]

I try to keep it honest and you keep putting your usual bs spin on it all. I really don’t care anymore to be honest and it seems you are still drinking the koolaid. What’s the announcement in the next 2 weeks? I’ve seen the memo so save me your usual “I’m making stuff up” and just answer the question.

If you don't know enough to offer any contributions, that's ok. We're used to it.

 

[yadig]

If you don't know enough to offer any contributions, that's ok. We're used to it.

Deflect, deflect. I know exactly what’s going on.

 

[59 Dano]

Deflect, deflect. I know exactly what’s going on.

That's quite the counterargument about the postal deal! So deep! So informed! What an intellectual juggernaut!!!

 

[yadig]

That's quite the counterargument about the postal deal! So deep! So informed! What an intellectual juggernaut!!!

Postal deal? What are you talking about?

 

[MAKAVELI]

Postal deal? What are you talking about?

 

[bacha29]

Dano is right in the sense that you don't spend 2 billion just to gross 2 billion. In the end don't be surprised if that little bit of high value extremely time sensitive air shipped stuff is something that Custom Critical gets a major share of when it comes to final mile. You Express guys appear to be in for a real economic gut shot.
Taking over abandoned areas as a contractor or going to work for one is playing right into their scheming little hands.