Reply to thread

Message

<blockquote data-quote="beentheredonethat" data-source="post: 969127" data-attributes="member: 4886"><p>Published rates are virtually the same between the carriers that is true.&nbsp; But FDX can and does discount the published rates more then UPS can. Our rate structure for ground is higher then FDX.&nbsp; One of the reasons that we have been able to still be profitable is that we have better density then FDX Ground does. By having density we can run more stops per hour and we deliver more Pieces per stop.&nbsp; However, if you look at the FDX yearly statements in 2009 FDX ground did 3.4 Million Pkgs/Day,&nbsp; in 2011 they did 3.746 Million Pkgs/day.&nbsp; That&#039;s about 1/3 million pkgs per day more in two years.&nbsp; They are growing density.&nbsp;&nbsp; The Smartpost volume was 827 thousand Pkgs/Day in 2009. In 2011 it was 1.432 Million pkgs per day.&nbsp; That&#039;s a huge increase in smartpost volume.&nbsp;&nbsp; The more volume they get in that network, the better and more efficient that network can run.&nbsp; If they keep growing at the rate they have been growing we will eventually lose the density advantage we have over them.&nbsp; Combine that with their lower cost and it will be bad news for UPS.&nbsp; Now, this won&#039;t happen in 1 year, or 2 years or probably even 5 years.&nbsp; But unless something changes, we will be in trouble.&nbsp; Look at the FDX annual report. You will see some scary stuff.&nbsp; They are growing faster then we are and they are winning market share in the ground network.</p></blockquote><p></p>

[QUOTE="beentheredonethat, post: 969127, member: 4886"] Published rates are virtually the same between the carriers that is true. But FDX can and does discount the published rates more then UPS can. Our rate structure for ground is higher then FDX. One of the reasons that we have been able to still be profitable is that we have better density then FDX Ground does. By having density we can run more stops per hour and we deliver more Pieces per stop. However, if you look at the FDX yearly statements in 2009 FDX ground did 3.4 Million Pkgs/Day, in 2011 they did 3.746 Million Pkgs/day. That's about 1/3 million pkgs per day more in two years. They are growing density. The Smartpost volume was 827 thousand Pkgs/Day in 2009. In 2011 it was 1.432 Million pkgs per day. That's a huge increase in smartpost volume. The more volume they get in that network, the better and more efficient that network can run. If they keep growing at the rate they have been growing we will eventually lose the density advantage we have over them. Combine that with their lower cost and it will be bad news for UPS. Now, this won't happen in 1 year, or 2 years or probably even 5 years. But unless something changes, we will be in trouble. Look at the FDX annual report. You will see some scary stuff. They are growing faster then we are and they are winning market share in the ground network. [/QUOTE]

Verification