Ground volume finally moving back to Express.

thedownhillEXPRESS

Well-Known Member
Well, I guess Ground is indeed imploding.
We were told today Last mile optimization is pretty much done with after May 30th.
It’ll be Expresses turn to implode this summer again .
 

HedleyLamarr

Well-Known Member
What area are you in? Haven't heard anything about this in Alabama.

Something I have noticed since last peak is that there are a lot of Ground trucks out of Georgia here. I thought it was temporary extra help for peak, but they are still here. Several contractors in the Birmingham metro must have folded so FedEx is paying out of state people to pick up the slack.
 

bbsam

Moderator
Staff member
What area are you in? Haven't heard anything about this in Alabama.

Something I have noticed since last peak is that there are a lot of Ground trucks out of Georgia here. I thought it was temporary extra help for peak, but they are still here. Several contractors in the Birmingham metro must have folded so FedEx is paying out of state people to pick up the slack.
Those Georgia trucks are doing what is called “contingency”. And the company spends crazy amounts of money on it. You’d think they’d just make decent contracts to begin with. I’m not sure what they’re aiming for, but in this employment market they’re going going to have a mess.

Maybe they’re betting on a recession.
 

McFeely

Huge Member
Those Georgia trucks are doing what is called “contingency”. And the company spends crazy amounts of money on it. You’d think they’d just make decent contracts to begin with.

They're doing similar in my area with Express drivers. They can't hire enough couriers in our market, so we have couriers from the next state over driving to my station daily. It's a daily shiite show.
 

Gone fishin

Well-Known Member
What area are you in? Haven't heard anything about this in Alabama.

Something I have noticed since last peak is that there are a lot of Ground trucks out of Georgia here. I thought it was temporary extra help for peak, but they are still here. Several contractors in the Birmingham metro must have folded so FedEx is paying out of state people to pick up the slack.
We also were told today
 

bacha29

Well-Known Member
What you might see here in the not too distant future is Express fighting with ground over whatever volume there is to service and chances are not enough to go around.
 

purplelife

Well-Known Member
Are you serious or just provoking a response?
Amazon, Walmart, target are moving their own freight And more continue to entertain that idea. A bunch of smaller companies are entering the market offering better local service for shippers and customers, so yeah this could be a problem.
 

purplelife

Well-Known Member
Amazon, Walmart, target are moving their own freight And more continue to entertain that idea. A bunch of smaller companies are entering the market offering better local service for shippers and customers, so yeah this could be a problem.
Add in the fact the usps contract is up in 2 years and nothing has been discussed and usps trying to cut costs and slow service so if fedex loses that, oh man, big changes.
 

floridays

Well-Known Member
Amazon, Walmart, target are moving their own freight And more continue to entertain that idea. A bunch of smaller companies are entering the market offering better local service for shippers and customers, so yeah this could be a problem.
Ok, it was a question, that's how one learns.
Thanks :thumbup1:
 

floridays

Well-Known Member
Add in the fact the usps contract is up in 2 years and nothing has been discussed and usps trying to cut costs and slow service so if fedex loses that, oh man, big changes.
I don't see how fedex would lose the postal contract. ho could and would service it?
Just another question.
 

purplelife

Well-Known Member
I don't see how fedex would lose the postal contract. ho could and would service it?
Just another question.
Honestly don't know but they are slowing down the service expectations across the board and trying to cut costs, they pay fedex billions a year to move that stuff. Amazon could low ball fedex for the contract to tighten the screws on fedex.
The last time they renewed it was years before it was ending, just an observation. Fedex itself bumps actual fedex freight for usps and has so many extra flights for mail, I can see it happening.
 

floridays

Well-Known Member
Honestly don't know but they are slowing down the service expectations across the board and trying to cut costs, they pay fedex billions a year to move that stuff. Amazon could low ball fedex for the contract to tighten the screws on fedex.
The last time they renewed it was years before it was ending, just an observation. Fedex itself bumps actual fedex freight for usps and has so many extra flights for mail, I can see it happening.
Thanks. :thumbup1:
Just an opinion but Amazon doesn't have the infrastructure to service the postal contract, much less the aircraft.
Fedex I would hope, only bumps fedex freight that can still make commit time, to service the terms of the USPS contract.
 

purplelife

Well-Known Member
Thanks. :thumbup1:
Just an opinion but Amazon doesn't have the infrastructure to service the postal contract, much less the aircraft.
Fedex I would hope, only bumps fedex freight that can still make commit time, to service the terms of the USPS contract.
True, but if there's one company that would spend a crap load of money to do something and prove a point, it's Amazon.

Who knows, just floating stuff out there.
 

floridays

Well-Known Member
True, but if there's one company that would spend a crap load of money to do something and prove a point, it's Amazon.

Who knows, just floating stuff out there.
I don't know either, it's why I'm asking questions.
To the original post I responded to, I do think it is doubtful that express and ground will be fighting over freight to deliver.

It's the reason I asked him.
 

bacha29

Well-Known Member
Are you serious or just provoking a response?
It's called a recession. A capitalist, free market supply and demand economic system has one major flaw. Growth does not go on indefinitely . Markets go up. Markets go down. And current market activity centers on growing expectation that there will be a major slow down if not an out an out recession. When there is a recession in an economy that is 70% consumer spending trucking usually feels it first and hardest when consumer spending cools.
 
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