fedx
Extra Large Package
It's ORIGIN based regionally. The program is called "last-mile optimization", but nothing prevents that optimization from happening upstream.
It IS the plan to move to the Ground network at the origin ramp. This is not speculative. These will remain Express packages so the rate will be the Express rate for that account/shipment.
There are numerous packages - especially E2 and XS that never see a plane today. Some aren't even linehaul transported by Express. They are moved on contract carriers Ozark, Swift and others. Ground will now be the contract carrier for some of those.
Well eventually it will get out to the public that Express is charging their high Express rates when the package never goes through Express and stays with Ground the whole time. I could also eventually see a customer class action lawsuit or FTC complaint of "bait and switch" or "fraud" or "misrepresentation" by Express by charging Express rates when it goes through Ground the whole time.