Ground to absorb Express

[bacha29]

bacha has all the facts, figures and dynamics figured out. If he says it will happen, book it Dano. That man is brilliant.

No I'm not . All I'm saying is that if the industry is moving toward a increasingly deregulated but ever more competitive environment they will utilize all measures at their disposal in an effort to protect their margins. That's what they are paid to do. Putting high profile express letters and packages in the hands of contractor employees many making barely minimum wage would scare anybody but they might just have to.

 

[59 Dano]

This mans mind is spectacular. We can all learn from him.

It's like reading my NFL team's message board. It's insane.

 

[Purplepackage]

 

[bbsam]

They don't have to do that much. They can just contract out deliveries of 2/3 day freight. They can start like they're doing with smartpost. If we're going there already we get the smartpost package too. That consolidation has actually been going well, I'm surprised. They just get dropped in and sorted like any other ground box.

Has it? I don't like the idea of "negotiating" $2.90 per stop but only getting $1.81 per smartpost stop.

 

[It will be fine]

Has it? I don't like the idea of "negotiating" $2.90 per stop but only getting $1.81 per smartpost stop.

That's the proximity stop version. I don't think that test went too well this last peak. I'm talking about extra pieces to stops you're already going to. I've got one bulk stop that has seen a decent increase with smartpost getting added in. I've also noticed them at just random 2-3 piece stops. I only noticed because I was training someone and actually in the truck. The stop count isn't increasing just some extra pieces. I expected them to screw it up and have smartpost showing up a day after we went to a stop, but they've been doing it well from what I've seen.

 

[Purplepackage]

No I'm not . All I'm saying is that if the industry is moving toward a increasingly deregulated but ever more competitive environment they will utilize all measures at their disposal in an effort to protect their margins. That's what they are paid to do. Putting high profile express letters and packages in the hands of contractor employees many making barely minimum wage would scare anybody but they might just have to.

Well if express packages were like smart post this would work.

Sure they could add the 2-3 saver to your current bulk stop, but 2 drivers would still be going there. Just because a company gets 70 pieces from ground doesn't mean they don't get 5-10 priority overnight pieces by 10:30

 

[bbsam]

Because when you add the overlapping area to your CSA they lower your compensation. Lower annual, lower stop rate, lower piece rate. You make less money to do more work. No reason to do it until you have to.

Not sure about that. I am sure that X will get their cut but I'm also certain I could save a lot of money and squeeze more profit as well. Easily eliminate at least 1 route.

 

[It will be fine]

Not sure about that. I am sure that X will get their cut but I'm also certain I could save a lot of money and squeeze more profit as well. Easily eliminate at least 1 route.

I am sure, I've been doing it for a while. That extra profit you think you can squeeze is taken by FedEx.

 

[Fred's Myth]

Word is that the money back guarantee for late deliveries is going to be passed on to the contractor as well. That late $35 letter you are getting $2 to deliver as additional profit is going to eat your lunch.

 

[bbsam]

S

I am sure, I've been doing it for a while. That extra profit you think you can squeeze is taken by FedEx.

O why are you doing it?

 

[Oldfart]

Word is that the money back guarantee for late deliveries is going to be passed on to the contractor as well. That late $35 letter you are getting $2 to deliver as additional profit is going to eat your lunch.

What word is that? Word is whatever source people are using is clueless.

 

[It will be fine]

S

O why are you doing it?

To be ahead of the game. It'll be required soon enough. I'd rather be set up ahead of time than scrambling when they force us. Also I thought like you do, that I could make more money. I didn't count on my rates being cut so much, but I had the loan already. If I can hang on until that's paid off and growth picks up again, I'll be in good shape.

 

[bbsam]

To be ahead of the game. It'll be required soon enough. I'd rather be set up ahead of time than scrambling when they force us. Also I thought like you do, that I could make more money. I didn't count on my rates being cut so much, but I had the loan already. If I can hang on until that's paid off and growth picks up again, I'll be in good shape.

Hmmm. The only way it will happen soon around here is if everyone buys in. We are so scattered that there really is no other way. Only takes one to kill it.

 

[Myort]

I noticed Ground Tracking numbers are 12 digits just like Express tracking numbers. I dunno, there could be some type of consolidation coming, with the opcos going to the same colors. Would it start in rural areas since it really isn't cost effective to have Express and Ground running around with miles between stops?

 

[Purplepackage]

I noticed Ground Tracking numbers are 12 digits just like Express tracking numbers. I dunno, there could be some type of consolidation coming, with the opcos going to the same colors. Would it start in rural areas since it really isn't cost effective to have Express and Ground running around with miles between stops?

Both tracking numbers have 12 digits?!?!?

You know, I actually noticed that both opcos have a "Fedex" in front of their name.....oh god they absorbing express

 

[bacha29]

I noticed Ground Tracking numbers are 12 digits just like Express tracking numbers. I dunno, there could be some type of consolidation coming, with the opcos going to the same colors. Would it start in rural areas since it really isn't cost effective to have Express and Ground running around with miles between stops?

If ground contractors suddenly find themselves with Express boxes with AM deadlines ......it's all over for them. I operated in a rural area. As a TM and I once talked about, the ground model was designed for a metropolitan area in a warmer climate with flatter terrain modern infrastructure much higher population density and high higher percapita consumption where contractors by and large worked neighborhoods. Out where I was we worked multiple counties. I don't think that there's any question that X wants to transform Express into a specialized carrier that handles high value items along with the high margins it offers.If rural Ground contractors were to handle deadline X boxes their work areas would have to be significantly reduced requiring them to commit more assets and rates would have to be increased significantly .......and what's the likelihood of that happening?

 

[Oldfart]

If ground contractors suddenly find themselves with Express boxes with AM deadlines ......it's all over for them. I operated in a rural area. As a TM and I once talked about, the ground model was designed for a metropolitan area in a warmer climate with flatter terrain modern infrastructure much higher population density and high higher percapita consumption where contractors by and large worked neighborhoods. Out where I was we worked multiple counties. I don't think that there's any question that X wants to transform Express into a specialized carrier that handles high value items along with the high margins it offers.If rural Ground contractors were to handle deadline X boxes their work areas would have to be significantly reduced requiring them to commit more assets and rates would have to be increased significantly .......and what's the likelihood of that happening?

So if you live in a hilly rural area with colder temps, the ground model won't work as designed?

 

[bacha29]

So if you live in a hilly rural area with colder temps, the ground model won't work as designed?

When you're a Day 1 contractor a major part of your task was to make it work The 3 of us would arrive at the barn at 5:30 AM to load up and nobody got back before 9M but normally we would start straggling in one at a time starting around 10PM with much of your day spent crawling up old logging trails abandoned strip mines and everybody's favorite gas line right of ways just to try to get back into Charley Redneck and Billy Joe Sixpack"s little piece of heaven using vehicles clearly designed for the city. That's when the Quigley's despite managements refusal to ok them started arriving on the scene. Even the leased terminal building was pig pen. I still laugh at the memory of the regional manager flipping out when he got his Gucci shoes muddy walking through the parking lot.

 

[OrioN]

Omg omg,the sky is falling!

The color change has taken place, now to absorb "FedEx Air" savers and just leave them with delivering envelopes #sarcasm

Let FedEx Air be just that...

Ground & Home Delivery should be CO-locations already. I had to leave 2 DEX 011's ( school closed on Saturday)

Now they gotta wait until Tuesday... sigh

At a CO-location, do u guys diverted known closures on Saturdays for Monday ground deliveries? And in exchange, take some of their residential boxes, including the send agains attempted during the week?

 

[It will be fine]

Omg omg,the sky is falling!

View attachment 123432

The color change has taken place, now to absorb "FedEx Air" savers and just leave them with delivering envelopes #sarcasm

Let FedEx Air be just that...

Ground & Home Delivery should be CO-locations already. I had to leave 2 DEX 011's ( school closed on Saturday)

Now they gotta wait until Tuesday... sigh

At a CO-location, do u guys diverted known closures on Saturdays for Monday ground deliveries? And in exchange, take some of their residential boxes, including the send agains attempted during the week?

Not really worth the effort. If my Monday guys are light they'll take a look through the Saturday send agains and grab some to lighten themselves up for Tuesday, but I don't care either way.