It will be fine
Well-Known Member
Last week I was down 26% in stop count from the same week last year. Dano thinks that’s a sign of strength in the network. My complete lack of hiring for peak and ability to handle the volume is a good thing in his mind. Whistling past the graveyard comes to mind.Do you see how these two statements possibly are linked in a way that is not great for FedEx?
The infrastructure held up because volume was way, way down. We have a guy in our building who tracks the numbers religiously every day year over year. At the last peak planning meeting with the engineer and MD (both of whom were fretting about whether we we’re ready) everyone basically ignored them and looked to J to get his insight. His numbers held up throughout peak. He consistently said we’d be down 15 to 20% and he was exactly right. Easiest peak ever.
That easy peak bailed out the company. The uncertainty in the contractor ranks continues and further cutting those rates in order to pander to investors will bring another example of how broken it is.
The one thing they might have going for them is continued weak demand. Between a slowing economy and shippers fleeing, they would be foolish to think everything simply turned out fine.
None of that even begins to touch how much they paid out and are paying out in contingencies.