Home
Forums
New posts
Search forums
What's new
New posts
Latest activity
Members
Current visitors
Log in
Register
What's new
Search
Search
Search titles only
By:
New posts
Search forums
Menu
Log in
Register
Install the app
Install
Home
Forums
The Competition
FedEx Discussions
Fedex to lose 2 Billion
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Reply to thread
Message
<blockquote data-quote="59 Dano" data-source="post: 5900546" data-attributes="member: 23516"><p>You would obtain a guarantee a minimum level of volume (or payment in lieu of) to be able to adequately plan for staffing, equipment, revenue, etc. If the USPS doesn't want to, or can't, that's fine. They can take their business to UPS or someone else. </p><p></p><p></p><p></p><p>LOL, my God. </p><p></p><p>You said it yourself: FedEx had build this mega daytime operation around flying planes full of mail. They were able to include some of their own deferred freight and it was great. The USPS freight subsidized the deferred FedEx freight that flew along with it. That isn't the case now. Much of that deferred freight can be trucked just as easily as it can be flown, and at a fraction of the cost. The rest can be shifted to existing PM flights. </p><p></p><p>The USPS has cut its air freight volume by 90% over the past three years. FedEx would need to overhaul that entire daytime operation in order to justify flying those volumes. It's easier and better for the bottom line to just let the contract expire if the USPS doesn't want to agree to a better contract. If UPS wants it, good for them. Perhaps they have enough excess capacity and they can absorb it. Don't know. Don't care.</p></blockquote><p></p>
[QUOTE="59 Dano, post: 5900546, member: 23516"] You would obtain a guarantee a minimum level of volume (or payment in lieu of) to be able to adequately plan for staffing, equipment, revenue, etc. If the USPS doesn't want to, or can't, that's fine. They can take their business to UPS or someone else. LOL, my God. You said it yourself: FedEx had build this mega daytime operation around flying planes full of mail. They were able to include some of their own deferred freight and it was great. The USPS freight subsidized the deferred FedEx freight that flew along with it. That isn't the case now. Much of that deferred freight can be trucked just as easily as it can be flown, and at a fraction of the cost. The rest can be shifted to existing PM flights. The USPS has cut its air freight volume by 90% over the past three years. FedEx would need to overhaul that entire daytime operation in order to justify flying those volumes. It's easier and better for the bottom line to just let the contract expire if the USPS doesn't want to agree to a better contract. If UPS wants it, good for them. Perhaps they have enough excess capacity and they can absorb it. Don't know. Don't care. [/QUOTE]
Insert quotes…
Verification
Post reply
Home
Forums
The Competition
FedEx Discussions
Fedex to lose 2 Billion
Top