Peak 2014, A Revised Forecast

MrFedEx

Engorged Member
Based on what I've seen and heard over the last 2 weeks, I am revising my Peak, 2014 forecast from "disaster" to complete and utter meltdown. Here's why:

1. We continue to lose people, and not just new employees with marginal value. Experienced, competent, mid-range employees are leaving in large numbers.

2. System operations are bad and will continue to get worse. Late CTVs and aircraft every day are concrete evidence of a dysfunctional core. The ramps can't keep people either, and what's left isn't up to the task.

3. Management is also losing good people. The "brain drain" from this company is absolutely incredible, and who and what they are promoting to management positions is solid evidence that they're taking what they can get....not choosing from amongst qualified candidates.

4. We cannot handle the volume we have now. Add-in Peak volumes and the system will basically grind to an effective halt. When you get your first plane or CTV at 1300, what's the point?

5. Customers are figuring it out. They're tired of paying for service they aren't receiving, especially shippers who truly have time-sensitive products. When you charge big money for a service, customers have a right to excellent performance. They aren't getting it.

6. Upper management is simply rearranging the deck chairs on the Titanic. We all know what needs to be done to turn things around, and so do they, but they won't spend the money. Being cheap only goes so far. At this point, their unwillingness to improve working conditions is costing them millions vs. saving millions. They are too stupid to figure this out.

There's more, but I don't want to drone-on. Bottom line: Total Meltdown.
 

Mr. 7

The monkey on the left.
5. Customers are figuring it out. They're tired of paying for service they aren't receiving, especially shippers who truly have time-sensitive products. When you charge big money for a service, customers have a right to excellent performance. They aren't getting it.

Just remember,
These big shippers also get the biggest discounts. I've seen as high as 80% off.
 

barnyard

KTM rider
From the outside looking in, it is very interesting to watch. Very similar to the railroad meltdown on the northern tier this past winter. They have thrown gobs and gobs of money at the problem, hired hundreds of people and think they have the problem close to under control.

They don't though. The proof is in the fact that railroads are no longer guaranteeing transit times on some routes.

It is almost like some companies forgot what to do in a growing economy.
 
From the outside looking in, it is very interesting to watch. Very similar to the railroad meltdown on the northern tier this past winter. They have thrown gobs and gobs of money at the problem, hired hundreds of people and think they have the problem close to under control.

They don't though. The proof is in the fact that railroads are no longer guaranteeing transit times on some routes.

It is almost like some companies forgot what to do in a growing economy.
Instead of trying to buy TNT. UPS needs to buy a railroad!
 

barnyard

KTM rider
Instead of trying to buy TNT. UPS needs to buy a railroad!

I doubt they could afford it now. They are all running very close to capacity and new capacity is over $1 mil per mile. There are dormant lines that were banked as part of the rails to trails program, but putting rails back on those rights of way is proving to be a hassle.
 
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