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An interesting article in the papers
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<blockquote data-quote="tieguy" data-source="post: 75230" data-attributes="member: 1912"><p>Wily, </p><p>there is no doubt that service is a huge factor in a customers choice in shipping. That is how the Fedex Express division has become the largest express carrier in the world. Express has always had the highest rates in shipping but continues to grow every year because of its reputation and service. </p><p> </p><p><span style="color: blue">Actually express has been seeing a loss of market share over the past couple of years but still holds a nice chunk of the overnight market.</span></p><p> </p><p>Tieguy was under the assumption that domestic was down in the express division. </p><p> </p><p><span style="color: blue">Supported by your recent earnings release. If you count the growth of international volume as express growth then you are correct. Your earnings statement list a 3 percent overall growth of all fdx volume. and a 1 percent growth of domestic. You built a new facility in hagerstown maryland. You have others going up along the eastern side of the US. a 1 percent growth rate will not fill those buildings up. Your folks did a nice job of increasing margins this past quarter. Investors and analysts are ecstatic over the margin growth and have so far ignored the dismal volume growth. I am curious to see how they would respond if UPS were to announce 5 percent or better growth on their next release. Not saying that will have just curious what would happen if they did.</span></p><p> </p><p> </p><p>Try to think of one of UPS's Larger shipping accounts. If they can get ground shipping at a much better rate, (were talking millions) what is going to keep them from switching. </p><p> </p><p><span style="color: blue">One thing would probably be the pricing games that fdx is playing with the rates they charge. Fdx offers lower published rates. When you add the gas surcharges and residential surcharges then fdx is actually higher then ups and dhl. Now that fdx announced such healthy margins the analsysts will start asking how they got those margin increases. There was a nice article out last week where one analysts pointed to the fuel surcharge as a big contributer. Your large shippers are savy enough to figure out what kind of games fdx is playing with its surcharges.</span></p><p> </p></blockquote><p></p>
[QUOTE="tieguy, post: 75230, member: 1912"] Wily, there is no doubt that service is a huge factor in a customers choice in shipping. That is how the Fedex Express division has become the largest express carrier in the world. Express has always had the highest rates in shipping but continues to grow every year because of its reputation and service. [COLOR=blue]Actually express has been seeing a loss of market share over the past couple of years but still holds a nice chunk of the overnight market.[/COLOR] Tieguy was under the assumption that domestic was down in the express division. [COLOR=blue]Supported by your recent earnings release. If you count the growth of international volume as express growth then you are correct. Your earnings statement list a 3 percent overall growth of all fdx volume. and a 1 percent growth of domestic. You built a new facility in hagerstown maryland. You have others going up along the eastern side of the US. a 1 percent growth rate will not fill those buildings up. Your folks did a nice job of increasing margins this past quarter. Investors and analysts are ecstatic over the margin growth and have so far ignored the dismal volume growth. I am curious to see how they would respond if UPS were to announce 5 percent or better growth on their next release. Not saying that will have just curious what would happen if they did.[/COLOR] Try to think of one of UPS's Larger shipping accounts. If they can get ground shipping at a much better rate, (were talking millions) what is going to keep them from switching. [COLOR=blue]One thing would probably be the pricing games that fdx is playing with the rates they charge. Fdx offers lower published rates. When you add the gas surcharges and residential surcharges then fdx is actually higher then ups and dhl. Now that fdx announced such healthy margins the analsysts will start asking how they got those margin increases. There was a nice article out last week where one analysts pointed to the fuel surcharge as a big contributer. Your large shippers are savy enough to figure out what kind of games fdx is playing with its surcharges.[/COLOR] [COLOR=red][/COLOR][COLOR=red][/COLOR] [/QUOTE]
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An interesting article in the papers
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