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Amazon volume doubled this saturday
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<blockquote data-quote="FedExRookie" data-source="post: 1268490" data-attributes="member: 44400"><p>UPS is on the road before you because their trucks are loaded 2 to 4 hours before sort starts. I can agree that it makes more sense and is probably more efficient. You're missing my point, maybe i'm missing my point. </p><p></p><p>This peak was the equivalent of each company being a highway. Lets say UPS is I-50 and FedEx is I-55. </p><p></p><p>Both I 50 and I 55 got bottle-necked during peak for various reasons. Weather, increase in freight, smaller window. </p><p></p><p>With FedEx's business model, they created exit ramps (ground) to divert that freight another way freeing up space on I 55. </p><p></p><p></p><p>So while UPS's I 50 is still bottle-necked, FedEx has cleared up some room loosening up the bottle-neck. As I said, I haven't looked into the logistics and financial implications. Maybe the cost of maintaining those exit ramps isn't beneficial (Lower pay to employees, etc) with the increase cost of creating and maintaining them along with I 55. </p><p></p><p>So during peak, with the influx of freight, some of it was diverted and allowed for FedEx to not have as bad of delays as UPS. Now fedex has to keep up with the infrastructure of the ground exit ramps even though there is enough capacity on I55, which is where you would be correct in it being inefficient throughout the rest of the year.</p></blockquote><p></p>
[QUOTE="FedExRookie, post: 1268490, member: 44400"] UPS is on the road before you because their trucks are loaded 2 to 4 hours before sort starts. I can agree that it makes more sense and is probably more efficient. You're missing my point, maybe i'm missing my point. This peak was the equivalent of each company being a highway. Lets say UPS is I-50 and FedEx is I-55. Both I 50 and I 55 got bottle-necked during peak for various reasons. Weather, increase in freight, smaller window. With FedEx's business model, they created exit ramps (ground) to divert that freight another way freeing up space on I 55. So while UPS's I 50 is still bottle-necked, FedEx has cleared up some room loosening up the bottle-neck. As I said, I haven't looked into the logistics and financial implications. Maybe the cost of maintaining those exit ramps isn't beneficial (Lower pay to employees, etc) with the increase cost of creating and maintaining them along with I 55. So during peak, with the influx of freight, some of it was diverted and allowed for FedEx to not have as bad of delays as UPS. Now fedex has to keep up with the infrastructure of the ground exit ramps even though there is enough capacity on I55, which is where you would be correct in it being inefficient throughout the rest of the year. [/QUOTE]
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Amazon volume doubled this saturday
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