When will fed ex pass ups in volume and earnings?

Big Arrow Down...D

Leave the gun,take the cannoli
My beef with FEdx is the packages that get into our system . The are placed on a pallet sitting there waiting to be picked up . Sometimes for weeks on end .
The ground driver will only take ground , the air only airs and so on . Actually it sucks for the consumer , never knowing where their packages are .
We have the pallet in our building...
 

bbsam

Moderator
Staff member
My beef with FEdx is the packages that get into our system . The are placed on a pallet sitting there waiting to be picked up . Sometimes for weeks on end .
The ground driver will only take ground , the air only airs and so on . Actually it sucks for the consumer , never knowing where their packages are .
Around here, UPS won't come and pick up their stuff. Doesn't matter to me though. The shipper got it on the wrong trailer. If UPS doesn't want to come and get it, we'll get it back to the shipper eventually.
 

It will be fine

Well-Known Member
My beef with FEdx is the packages that get into our system . The are placed on a pallet sitting there waiting to be picked up . Sometimes for weeks on end .
The ground driver will only take ground , the air only airs and so on . Actually it sucks for the consumer , never knowing where their packages are .
I've had UPS centers that have daily Ground pickups for just this reason. I have another one that never tells us they have our stuff. I used to have a guy stop in regularly to check, but he started getting attitude from the people behind the counter so we stopped. It's the customer's own fault if they give their packages to the wrong carrier.
Shippers don't care if the driver is clean shaven and free of tattoos. If they did Ground wouldn't be growing 12% a year.
 

Cactus

Just telling it like it is
FedEx Ground =
images
 

TUT

Well-Known Member
I mean we probably don't profit off much of the Amazon volume.

Investors imo are the main winners in the Amazon chain. Everybody else is squeezed to sell at bleeding edge levels, beyond what their accountants would agree to without their bosses say "Make it so". All these companies feel the pressure of not being there could come back to bite them, so they join up. Now many have still made money, but perhaps if no Amazon, something else would exist that isn't about absolute bottom feeding and perhaps the margins of their products would have been better and overall more profitable. What if the world existed where all the products online cost a whole $5 more? And producer/carrier made near normal margins?

It is possible that those that contributed to the Amazon empire in the end could be the ones bit. As you see in logistics, they openly speak about how they are trying to get around you and seemingly are a little more each day, nice partner, huh? To other articles of a company joins up with Amazon to sell their product, nice platform and suite of tools, does great, Amazon has all the stats since you are in their world and what do they do? They contract with a Chinese mfg for the same product you sold a lot of and then a new competitor shows up one day on Amazon with an equal product but cheaper and if you dig deep enough, uh huh owned by Amazon. Give it more time to see.
 
T

Turdferguson

Guest
I've had UPS centers that have daily Ground pickups for just this reason. I have another one that never tells us they have our stuff. I used to have a guy stop in regularly to check, but he started getting attitude from the people behind the counter so we stopped. It's the customer's own fault if they give their packages to the wrong carrier.
Shippers don't care if the driver is clean shaven and free of tattoos. If they did Ground wouldn't be growing 12% a year.
You would show up at the customer counter in a FedEx truck for pick ups?
 

UPSGUY72

Well-Known Member
I mean we probably don't profit off much of the Amazon volume.

Your are probably correct however we still make a profit in the end. Fed Ex is willing to take a lose to just say they have a contract UPS isn't.

Also UPS new policy about actually charging for the weight and size of the package will just increase the profits.
 

Brownslave688

You want a toe? I can get you a toe.
Your are probably correct however we still make a profit in the end. Fed Ex is willing to take a lose to just say they have a contract UPS isn't.

Also UPS new policy about actually charging for the weight and size of the package will just increase the profits.
Are you sure about that? @bbsam has said many times fedex does not give Amazon a discount. I would think of all places they would get a big discount.
 

TUT

Well-Known Member
Your are probably correct however we still make a profit in the end. Fed Ex is willing to take a lose to just say they have a contract UPS isn't.

Also UPS new policy about actually charging for the weight and size of the package will just increase the profits.

You can believe that if you like, but I know from negotiations, either one can under bid the other if the timing is just right. UPS and Fedex have money losers and money winners. As you can see from Fedex Quarterlies they aren't taking business to impress someone say "Look who we have!", otherwise they would always be cheaper than you, that isn't always the case. UPS can lay a competitive rate on the table as good as any of the other "cheaper" guys and I'd assume most of the business you have is because you have a cheaper rate on the table then what your main competitor presented, not always the case sometimes your qualities shine through, but it's the leading one. $$$ matters. It is almost all that matters anymore. Customer service is swept under, long time now.

UPS and Fedex have both added dimensional weight to ground shipping at the same time this past January. Equal. This I believe has been a little boon to USPS volume. However from reports it doesn't seem to have upset the program, which I'm sure eyes were all over that. Overall I get the point, too much Amazon TP going out, right? Each day your shippers get smarter, advanced logistics figuring out what carrier works best for this product in that lane etc and mostly driven by which comes up on top of the list as cheapest.
 

TUT

Well-Known Member
Are you sure about that? @bbsam has said many times fedex does not give Amazon a discount. I would think of all places they would get a big discount.

That would have to be some very limited situation and interesting reason why. Fedex I'm certain supplies a very healthy discount to them. For example, I ordered not this past Christmas but the one prior a product on Thursday that I was more than ok to get on Monday, they sent it 2 Day Express Saturday delivery, it was a car seat cover for around $15 dollars, free shipping to me. The list on that and I checked was approaching $50. They didn't lose their shirts like that.
 

bbsam

Moderator
Staff member
Are you sure about that? @bbsam has said many times fedex does not give Amazon a discount. I would think of all places they would get a big discount.
We have been told several times that Amazon wants too big a discount and the profit margin simply is not worth the headache. Does anybody really think Ground couldn't match UPS price for 20% of their freight?
 

UPSGUY72

Well-Known Member
Are you sure about that? @bbsam has said many times fedex does not give Amazon a discount. I would think of all places they would get a big discount.

I know what the sales people that work out of my building have said. They aren't allowed to give discounts on volume no matter how much a company is shipping out each day....
 
Top