FedEx Wins Postal Contract. Show Me The Money, Fred

[MrFedEx]

OK, so FedEx won the contract to line-haul Express and Priority Mail. Just another indicator that Express isn't going out of business any time soon like they have been implying. I'd like my raise now. I wonder who Fred had to grease-up to get this one?

 

[bbsam]

Do couriers even touch that freight?

 

[Rhoderunner]

Couriers no, airport ramp personal yes. At the AM roundup this morning the SM assured us the Oct raise was now a green light. SUUUUURE it is. Once the $$ goes in to the coffers it's Freds to play with and I still have my doubts we see any.

 

[ajblakejr]

Do couriers even touch that freight?

I would guess NOT.

We have four pt dock guys scan USPS FCM and Priority postal volume while loading it in ULDs. Trucks move it to a central location where it is scanned and sorted again and then loaded on A/C to destination. Destination then scans USPS and loads it by class into APCs or BMCs. The USPS recovers the volume and moves it to their fine sorting facility.

 

[hypo hanna]

It's a renewal of the contract we have that expires in September. 7 years with an estimated 10.5B revenue. Airport to airport freight.

 

[MrFedEx]

Do couriers even touch that freight?

No. Airport to Airport only. USPS trucks or contractors take it from the ramp. Fred can now "afford" our raise, which he could already afford but didn't because he's a cheap-ass bastard.

 

[Mr. 7]

When I'm at the ramp, the USPS guy is just getting in my way.
Nothing against him, personally. But, it does tie up one of our guys that has to route some stupid USPS international pkg.

 

[irudedog]

this money could have been used to pay for a ratified contract for us Fdx employees

 

[El Morado Diablo]

The price of the contract surprises me (7 yrs @ $10.5 billion). I think the first contract was 7 yrs @ $7.0 billion. You would have thought the USPS would use the economy, lack of Express volume and UPS bidding on the contract to get a deal similar or better than the first one.

 

[hypo hanna]

10.5B was written as "estimated revenue". Could be pie in the sky numbers for the benefit of potential investors.