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Brown Cafe UPS Forum
UPS Union Issues
hall: This Should Be Our Best Contract Ever.....HANDS DOWN!!!
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<blockquote data-quote="Bagels" data-source="post: 1127722" data-attributes="member: 43436"><p><strong>Re: Concessions with record profits?????? are u serious hoffa and Hall?</strong></p><p></p><p></p><p></p><p>They're not the two only players. Competition is growing at an astonishing pace while UPS's volume is basically flat. There's small, regional competitors like OnTrac; there's local courier services utilizing LTL -- many of which are developing into small, regional competitors, etc. The high cost of shipping has become a major gripe among shippers, and they're constantly seeking low-cost alternatives. This is why small carriers, as well as services like SurePost, SmartPost, DHL@Home, etc. are thriving. Additionally, FedEx enjoys 20% margins on its Ground division, but desperately needs the profits to solidify other divisions. Should FedEx, which has built a vast info-structure with oodles of capacity, instead decide to focus on undercutting UPS in favor of market share, we'd begin losing volume. Not to mention that e-commerce has driven most of the recent growth -- when retailers begin passing additional shipping costs & tax collections onto consumers, the market will begin shrinking.</p><p></p><p>To say 'UPS can raise its rates whatever it likes and people will pay it' was so true in 1997, but a total misnomer in 2013.</p></blockquote><p></p>
[QUOTE="Bagels, post: 1127722, member: 43436"] [b]Re: Concessions with record profits?????? are u serious hoffa and Hall?[/b] They're not the two only players. Competition is growing at an astonishing pace while UPS's volume is basically flat. There's small, regional competitors like OnTrac; there's local courier services utilizing LTL -- many of which are developing into small, regional competitors, etc. The high cost of shipping has become a major gripe among shippers, and they're constantly seeking low-cost alternatives. This is why small carriers, as well as services like SurePost, SmartPost, DHL@Home, etc. are thriving. Additionally, FedEx enjoys 20% margins on its Ground division, but desperately needs the profits to solidify other divisions. Should FedEx, which has built a vast info-structure with oodles of capacity, instead decide to focus on undercutting UPS in favor of market share, we'd begin losing volume. Not to mention that e-commerce has driven most of the recent growth -- when retailers begin passing additional shipping costs & tax collections onto consumers, the market will begin shrinking. To say 'UPS can raise its rates whatever it likes and people will pay it' was so true in 1997, but a total misnomer in 2013. [/QUOTE]
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