I’m honestly curious as to how the handoff is going to happen.
-after each package has been SIPed at an Express station?
-separated at the local ramp?
Sometimes our sort at my Express station isn’t done until 0900, would the Resi stops be shuttled to the nearest Ground facility at that point?
I don’t argue that Ground can deliver these cheaper than Express, just wondering the logistics behind the separating and shuttling and still get the stuff delivered on time.
Consistent with speculation this will happen at the origin. We now know it will be on the origin ramp and Express will make the pup. These will remain Express packages. FXG will be paid by Express to complete the delivery like a cartage agent. All commitments and money-back will still apply. They will have an URSA that routes it. The pickup courier will load it with their all their deferred freight and the ramp will bulk load a trailer. The system will determine which packages can make the service commitment when labels are created.
I wonder how customer service will work. If the package is missing or late will traces go the destination Express station? There is a ton we don't know. What can be certain is FedEx will be more profitable. Hopefully that gets to the employees.
It will start in GSO with 2D and XS. New markets are planned to start in April. Typically, these rollouts do not stay on schedule so it wouldn't be surprising if it is refined in GSO a little longer than initially planned.
You could see this coming especially after the 2017 Kelly v. FedEx Ground decision cemented the ISP model. There was never any legal reason preventing the OpCos from contracting with each other.