USPS deal

Fred's Myth

Nonhyphenated American
It’s more like Dominos dropping the 30 min delivery or it’s free deal. Or Amazon giving up on 2 day delivery for prime. FedEx can set the expectation for P1 delivery at noon and charge a crazy premium for First Overnight of 10:30. I imagine the majority of shippers will be fine with noon.
Why would they, when they can accrue penalties against contractors who fail to adhere to commit times?
 

zeev

Well-Known Member
Shippers are not going to chase time commitments, they will just realize all Express will be delivered on the Ground time clock and adjust by just shipping everything Ground. If it’s important they will use UPS or contract with Amazon.
 

MAKAVELI

Well-Known Member
Shippers are not going to chase time commitments, they will just realize all Express will be delivered on the Ground time clock and adjust by just shipping everything Ground. If it’s important they will use UPS or contract with Amazon.
Most if not all pay the high rates of Express to get their shipments faster and more reliably. Those shippers aren't going to simply shrug their shoulders and accept crappy service. UPS will eventually be taking that high rev freight along with more ground because they are the more reliable service.
 

It will be fine

Well-Known Member
For decades now customers who don't need it by 1030 or noon depending on the area pay Standard Overnight rates to have it by 1500 or 1630 depending on the area. About 75% of the U.S. population can get it by 1030 if I remember right. I think you underestimate how important that 1030 commit is for some. Once Standard Overnight was implemented the number of Priority Overnight pkgs dropped. But very often I found people waiting desperately at 0930 to get their pkg so they could very quickly leave. I remember a veterinarian clinic waiting for their pkgs in Abilene, KS, a noon commit, so that they could start operations and often were calling to request that I make a beeline for them at 1000 because they were in desperate need. And before you start smirking about a little town in KS I found similar situations in downtown Seattle and in Stamford, CT. Yes there are plenty of customers who don't get excited at all about you delivering them a letter at 0915. But very often the shipper the previous day was very anxiously asking for by 1030 service because it was an important bid that needed to be delivered by a certain time or something similar.

I'm sure you know the Ground side very well but Express is a different animal. And there's a reason that FedEx Express dominates the overnight delivery industry over UPS. The only way UPS will beat out FedEx in overnight delivery is if FedEx decides to move Priority in 1030 commit areas to noon. To jack up 1030 commit deliveries to First Overnight will absolutely send that business to UPS. UPS will have to revamp their operation to keep customers happy. Can't tell you how many times customers told me they tried UPS for the lower cost and it was worth it to them to pay the higher FedEx rate for the reliability. But paying First Overnight rates for 1030 instead of 0800? Not likely.
What you’re saying is actual necessary priority deliveries are rare. Maintaining the network to accomplish that is expensive. FedEx knows their shippers better than we do. If they don’t believe they need 10:30 commit times they’ll push them back. Priority is an ever shrinking minority of packages so investing money to keep that up is silly.
 

Myort

Well-Known Member
I’m pretty sure FedEx followed UPS on the Standard Overnight commitment at the end of the day, and P1 resi at noon.
 

MAKAVELI

Well-Known Member
What you’re saying is actual necessary priority deliveries are rare. Maintaining the network to accomplish that is expensive. FedEx knows their shippers better than we do. If they don’t believe they need 10:30 commit times they’ll push them back. Priority is an ever shrinking minority of packages so investing money to keep that up is silly.
I'm pretty sure FedEx doesn't care about their customers.
 

vantexan

Well-Known Member
What you’re saying is actual necessary priority deliveries are rare. Maintaining the network to accomplish that is expensive. FedEx knows their shippers better than we do. If they don’t believe they need 10:30 commit times they’ll push them back. Priority is an ever shrinking minority of packages so investing money to keep that up is silly.
They're rare? Says who? As I pointed out customers have had the option of Standard Overnight for decades now. There are still plenty of Priority deliveries.
 

It will be fine

Well-Known Member
They're rare? Says who? As I pointed out customers have had the option of Standard Overnight for decades now. There are still plenty of Priority deliveries.
I said necessary priority is rare. No doubt ignorant shippers still select it when they don’t really need it. Some dude in a mailroom selecting priority because his boss said “FedEx this” doesn’t mean the box actually needs to arrive by 10:30.
 

vantexan

Well-Known Member
I said necessary priority is rare. No doubt ignorant shippers still select it when they don’t really need it. Some dude in a mailroom selecting priority because his boss said “FedEx this” doesn’t mean the box actually needs to arrive by 10:30.
There is some of that, sure. But there are a million scenarios where someone needs something early. It's in your interest to bump 1030 to 1200 but it's definitely not in the company's best interest to walk away from what made them successful to begin with.
 

Gone fishin

Well-Known Member
I said necessary priority is rare. No doubt ignorant shippers still select it when they don’t really need it. Some dude in a mailroom selecting priority because his boss said “FedEx this” doesn’t mean the box actually needs to arrive by 10:30.
Companies also ship for tax write offs. There’s levels
 

bacha29

Well-Known Member
Reading the comments it would appear that the overall consensus here is that in the end Fat Freddy and Raj will take what is already the poorest damn setup in the history of wheeled transportation and somehow find a way to make it even worse.
 

yadig

Well-Known Member
No
Reading the comments it would appear that the overall consensus here is that in the end Fat Freddy and Raj will take what is already the poorest damn setup in the history of wheeled transportation and somehow find a way to make it even worse.
spot on
 

bacha29

Well-Known Member
Ya, that's not how it works bruh. 🤣
What it will mean for rural contractor drivers is bypassing and jumping ahead 30-40 miles to hit a time commit air box than have to come back to square one. That's one of the many reasons why you cannot put air box on a high mileage ground route.
 

Spam

Well-Known Member
What it will mean for rural contractor drivers is bypassing and jumping ahead 30-40 miles to hit a time commit air box than have to come back to square one. That's one of the many reasons why you cannot put air box on a high mileage ground route.
That’s why rural routes P1 is 5:00 pm 🤦🏻‍♂️
 

59 Dano

I just want to make friends!
So if I bring your pizza Wednesday and you ordered it Tuesday you’re good with that ?
Express was built on the idea of having your shipment in the morning before 1030 so a business can have it for that days work.
People don’t spend high amounts of money for express to get it in the afternoon.
Where are you lost.
EXPRESS EXPRESS EXPRESS
I'm dealing with real data on the macro level about customers, what they do, how much they do it, and why.

The fact that you're talking about a pizza delivery doesn't make me lost, it makes you lost.
 
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