Rumor some big accounts going to fed ex.

Discussion in 'UPS Discussions' started by onehandsolo, Dec 23, 2012.

  1. onehandsolo

    onehandsolo Active Member

    The rumor on the fed ex board is ups is going to lose a lot of volume from 3 major accounts starting January 2nd. If true this may affect how some of us bid routes. My route would be affected dramatically if we lost amazon prime volume.
  2. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    Most routes would be dramatically affected if we lost Amazon Prime volume. The rumor is we won't be losing all of it but will be swapping the current volume percentages with Ground. In other words, if the %'s are 60/40 in our favor it would change to 40/60.
  3. Just Numbers

    Just Numbers Retired

    Rumors are rumors until they become fact. If this becomes fact then the question needs to answered as the reason why we are losing this volume.
  4. bbsam

    bbsam Moderator Staff Member

    in the past the reason would have been strictly price. Now transit times probably play a big part.
  5. barnyard

    barnyard KTM rider Staff Member

    I would imagine it is a combination of price and transit. Sales guys that I talk to say that it is one of our weaker areas.

  6. What's wrong with our transit time? How does FedEx do it faster or better? I can understand the price problem. Btw-I shipped a Christmas pkg to our relatives....$17! The box was valued at $100....nearly 20% of value. Expensive to ship? I think so. BTW- I was told we are not making money on some of our accounts.....we have them just for the volume...I guess. Isn't that what FedEx does?
  7. barnyard

    barnyard KTM rider Staff Member

    Fed Ex uses sleeper teams for most of their volume. A sleeper team will pretty much always beat railroad transit times. There is no way UPS could pay union scale on enough sleeper teams to compete. They have already asked UP and BNSF for faster transit times. Both railroads tested it and decided that so many other trains would be disrupted that it was not worth it to run them.

    Right now, we are getting the best transit times we are going to get from the railroads. They only way to tighten them up would be to add more sleepers.

  8. Ok. My question has always been: why are sleeper teams paid so high? I say pay em by the hour. If they're off they're off. Pay em like regular folks and our costs go down. If they know they'll be away from home (or whatever causes the excessive pay)when they bid......And I guess when it comes down to it....we can't compete because of mgt.s poor decision making.
  9. barnyard

    barnyard KTM rider Staff Member

    Even if sleeper teams were paid by the hour only for hours worked, our feeders still make quite a bit more than a Fed Ex team.

    I believe that a feeder driver is the highest paid hourly at UPS. There is no way the union will negotiate a wage decrease for them. That would be seen by way too many as a contract failure.

    The most profitable volume we have is NDA and International. That is the volume we have to protect and grow. . As long as we have enough ground volume to justify the network, we will continue to do well.
  10. Funfact

    Funfact Well-Known Member

    Don't worry those that leave come back eventually.. The Price might be better but the service they are going to get isn't going to be. Every Fed Ex car I have seen during peak was empty compared to mine that was stuffed full.

  11. How about mechanics? They have a tool allowance. "Feeder" drivers a little more for doubles than pkg. I believe. Otherwise the same. Feeder drivers(some) make more because of gross(total) hours yearly. Pkg drivers during peak would probably eclipse some feeder drivers. Due to shear hours.
  12. who much would fair pay be? I dont think I could be stuck in a UPS truck for a couple of days at a time? If you think you dont see your family now,....What about those poor women and men doing that job!!!!!!
  13. bbsam

    bbsam Moderator Staff Member

    I love that. If there is one thing Fedex could never buy it is the complacency of it's rival. Looks like we get that for free.

  14. Maybe. Price is king. Save a buck, most will accept longer transit to...I think. Example: I shipped a gun to Mo. It arrived a day late(not guaranteed). No biggie. I know of some accounts that never came back after the strike of '97......that's a long time.
  15. Monkey Butt

    Monkey Butt You can call me Chappy Staff Member

    I'm not feeling good about this but I agree with bbsam. :wink2:

    Furthermore, the shipper is satisfied with the service levels and unless the consignees provides feedback to shipper, the consignee satisfaction doesn't matter.
    I get slammed consistently on this point but the service level perceived by the consumer consignee is irrelevant.
    The shipper pays the bill and most importantly, makes the decision on the carrier.

    UPS understands this now (FedEx took our packages away because we foolishly thought the consignee perceived service was important) and is trying to change that through the use of My Choice.
    It will be interesting in 2016 to see whether UPS has been able to move the consignee more into the carrier selection decision.
    Time will tell.
  16. Poor? I don't think so. Usually the very top get those coveted jobs! Unless, they suck so bad.....Thurs. thru Mon. for example. They know exactly what's involved. This is bs.
  17. bbsam

    bbsam Moderator Staff Member

    Hoaxster, we agree. I don't feel good about you agreeing with me either. So no we've agreed twice...eeeewwww!:wink2:
  18. 'Lord Brown's bidding'

    'Lord Brown's bidding' Well-Known Member

    And as pointed out, FedEx' transit times for ground are better, too. Then there is my experience at Lowe's, which deals more with residential deliveries (like Amazon does) than commericial. I'd say 2/3 to 3/4 of what they ship out goes FedEx, but most of the returns come from UPS. Besides being broken, I see the usual suspects, like "need apt num" or "ns street", although the shipper likes to show me the original order with the apt num on it or Google the address and use street view to show me where it is. This is one residential shipper. And having spent time reading this board as well as talking to other drivers who "train" their customers by "refusing" pkgs when someone at a business who isn't authorized to sign won't, or someone at a house takes too long or asks the driver to hold on a min, they can't sign right then. Is it similar to others?
  19. Again, drivers are trained by mgt. for minimal contact time. Drivers are given minimal allowances. Methods...right? Your insinuation is this is a drivers fault. It is mandated from above. Now, falsifying records is a whole other subject......Upstate might have some insight into this......
  20. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.