Oldfart
Well-Known Member
Laughing at? Yep. Listening? Not hardly.You're listening to it so that's at least one.
Laughing at? Yep. Listening? Not hardly.You're listening to it so that's at least one.
Well I guess that's irrefutable.Almost all UPS are former drivers.
I guess I'm just thinking since Ground is doing so well for FedEx and the fact that they aren't even company employees, I'd think FedEx would be making huge money compared to UPS who pay a lot of drivers $35-$40/hr. Here you have UPS that pays their drivers anywhere from 50% to 100% more than FedEx and yet they (UPS) is still more profitable.UPS sustains a better profit margin due to stop density, they Run 1 TRUCK(Delivers AIR/GROUND) FDX Runs 3(Express/Ground/home delivery)
There isn't a single Express route that runs the density of a UPS route
Real world scenario, a few years outdated, but still close:
At UPS 3 Routes(one loop) Downtown/ruralish/mountain is close to 300stops(180/70/50)
At Fedex in the same whole area(express runs 55 stops one truck)(Ground 120ish just businesses)(HD 40-50 just resi)
I guess I'm just thinking since Ground is doing so well for FedEx and the fact that they aren't even company employees, I'd think FedEx would be making huge money compared to UPS who pay a lot of drivers $35-$40/hr. Here you have UPS that pays their drivers anywhere from 50% to 100% more than FedEx and yet they (UPS) is still more profitable.
How can that be? To listen to many, Fedex treats its employees horrible while UPS is a much better place to work.Something that helps UPS be more profitable is that they lay off drivers when there is no work. FedEx pays minimums.
Okay, Earl.How can that be? To listen to many, Fedex treats its employees horrible while UPS is a much better place to work.
Who says and thinks that way? That's right, it's operational.How can that be? To listen to many, Fedex treats its employees horrible while UPS is a much better place to work.
Ground is very profitable, because of low overhead
Express just has a high operating cost that keeps overall profitability down.
UPS is profitable because well their system is overall much more (Productive)efficient than FedEx as a whole.
Anyone who works at Express and takes the time to read or listen to the financials that are relayed to us knows the cost of an air operation. I imagine the question was posted by someone who just started working at Express or doesn't even work there. It wasn't that long ago Express was working with 5% margins and with a few years of improvements, margins are very close to what Ground is achieving.The margin on ground packages is ridiculous vs the margin on air packages. Air packages comprise less than 20% of UPS' freight, but nearly half of FedEx freight. Most people have no idea of the staggering overhead that an air operation has.
It wasn't that long ago Express was working with 5% margins and with a few years of improvements, margins are very close to what Ground is achieving.
Up 50% from just a few years ago and moving in the right direction.Express margin is half that of Ground.
Up 50% from just a few years ago and moving in the right direction.
Express margin is half that of Ground.
your right 14.2% grand 7.1% express, most of the express margin is in express freight also known as heavyweight.That's fine, but they are nowhere near "very close to what Ground is achieving" and probably never will be.
A few years ago, Express was less than 5 and Ground was over 15. The more money they have thrown at Ground has brought their % down and Express has had the opposite result. Fleet upgrades, more technology and other improvements will have a positive result at Express. I expect Express to keep going up while Ground's expansion will hinder their numbers. Maybe bacha can give his opinion. He is a financial genius and would know.That's fine, but they are nowhere near "very close to what Ground is achieving" and probably never will be.
A few years ago, Express was less than 5 and Ground was over 15. The more money they have thrown at Ground has brought their % down and Express has had the opposite result. Fleet upgrades, more technology and other improvements will have a positive result at Express. I expect Express to keep going up while Ground's expansion will hinder their numbers.
Ground is the future, if you go into the sort facilities all the investment is ground X owns the buildings and they are automated. Express is in leased buildings with old technologyThere's no reason for Ground not to have a significantly higher margin than Express. It should be higher. Express would be lucky to hit 10% for a year and it would take something drastic for them to be able to maintain 10% consistently.