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Is Ground really getting E2 and XS?
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<blockquote data-quote="vantexan" data-source="post: 1094001" data-attributes="member: 24302"><p>When a pkg is put into the Ground system from start to finish, it's more profitable than sending it by Express due to Ground's lower operating costs. If however in the future Express couriers pick up pkgs that are ultimately delivered by Ground the savings won't be, in that scenario, from Ground delivering it. The pkgs were charged Express rates, picked up by Express, flown in Express jets. The savings will be in the overall smaller Express workforce working much less overtime. The question is will customers tolerate paying Express rates to have their pkgs delivered by Ground? I think it's unlikely this will happen but we'll just have to wait and see. If Ground starts delivering P2 I don't see how they'll avoid layoffs. Laying off people due to a bad economy is one thing. Laying them off to shift work over to a cheaper workforce to enhance profits is quite another. My best guess for what it's worth is we'll see more and more shippers use Ground over time and as people retire, or leave due to lack of hours, the Express workforce will shrink. I doubt the company wants layoffs because it may give shippers the impression something's wrong with FedEx. So, IMO, less overall Express freight due to shippers switching to Ground, and a slow but sure reduction in the Express workforce.</p></blockquote><p></p>
[QUOTE="vantexan, post: 1094001, member: 24302"] When a pkg is put into the Ground system from start to finish, it's more profitable than sending it by Express due to Ground's lower operating costs. If however in the future Express couriers pick up pkgs that are ultimately delivered by Ground the savings won't be, in that scenario, from Ground delivering it. The pkgs were charged Express rates, picked up by Express, flown in Express jets. The savings will be in the overall smaller Express workforce working much less overtime. The question is will customers tolerate paying Express rates to have their pkgs delivered by Ground? I think it's unlikely this will happen but we'll just have to wait and see. If Ground starts delivering P2 I don't see how they'll avoid layoffs. Laying off people due to a bad economy is one thing. Laying them off to shift work over to a cheaper workforce to enhance profits is quite another. My best guess for what it's worth is we'll see more and more shippers use Ground over time and as people retire, or leave due to lack of hours, the Express workforce will shrink. I doubt the company wants layoffs because it may give shippers the impression something's wrong with FedEx. So, IMO, less overall Express freight due to shippers switching to Ground, and a slow but sure reduction in the Express workforce. [/QUOTE]
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Is Ground really getting E2 and XS?
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