Something To Remember As We Enter Peak

[UpstateNYUPSer(Ret)]

bbsam, I have a couple of questions: Will the customers know that they have received the free upgrade? If so, is this something that they will come to expect in the future?

I understand the concept and see it as a smart business move. As you said, the planes are already in the air and the trucks are already on the road, so why not fill them to the brim.

If the line between the opcos was blurred before this all but wipes it out.

 

[MAKAVELI]

They won't do Saturday. Saturday they have enough Ground drivers looking for extra money.

As I stated my station is expecting a large increase in volume Saturday Nov. 30.

 

[STFXG]

that's incorrect, i know of a few that will turn away freight once they max their thresholds... the crappy areas goes to the hourly temp drivers...

i'm done early today because the volume is still "light" & i'm laughing at how Ground/HD is just letting those boxVans sitting in the parking lot since Sept... 2 more weeks & i hope they can start from all that ethanol-gas mixture that is slowly going stale in the fuel tanks... temp pool at one hub is about 40-strong & they'll double it by Thanksgiving

Some terminals OFFER temps to help. ICs have no ceiling as far as stop thresholds. We can opt in to flex volume off if temps are offered. We can't refuse volume. We are responsible for everything in our areas.

There's also an HD diversion program during peak that's optional for ground contractors. Where HD can flex volume over to Ground.

Maybe your states contract is different. But from what I know that's a main difference between IC state and ISP states.

 

[bbsam]

Do you understand the cost involved for Saturday del? They would lose so much $ on a free upgrade for Saturday del. Even our clueless leaders could figure that out.

that doesn't make any sense during peak. Whether they make the money from the Ground rate or regular Saturday delivery doesn't matter for peak because if they can't deliver it they get nothing at all.

 

[whenIgetthere]

As I stated my station is expecting a large increase in volume Saturday Nov. 30.

Same here, they're already begging people to work that day, saying they need minimum 15 more routes that day. There are a lot of people who have been moved from 5x8 to 4x10 who will volunteer because the 4x10 is putting a crimp in their paychecks.

 

[STFXG]

You guys are probably going to a full 6 day schedule. That's what we are doing at our building to push through the extra volume.

 

[bbsam]

bbsam, I have a couple of questions: Will the customers know that they have received the free upgrade? If so, is this something that they will come to expect in the future?

I understand the concept and see it as a smart business move. As you said, the planes are already in the air and the trucks are already on the road, so why not fill them to the brim.

If the line between the opcos was blurred before this all but wipes it out.

I think the answer to the first is yes. They would have to separate it out for the Express pickup. As to if they would expect it in the future, probably but it won't matter. I believe it's based completely off daily projections. A package going to an address on Monday may be upgraded but the same package going the following day may not be just depending on zip code density projections. It's the same thing Ground does every year in adding line haul runs for peak. We can get freight from Northern Florida to Illinois overnight because the volume dictates the added expense. Should they expect the same in April? Probably not.

 

[bbsam]

You guys are probably going to a full 6 day schedule. That's what we are doing at our building to push through the extra volume.

yep. They ask for volunteers first and then dictate what is going to happen.

 

[MAKAVELI]

that doesn't make any sense during peak. Whether they make the money from the Ground rate or regular Saturday delivery doesn't matter for peak because if they can't deliver it they get nothing at all.

There is a reason there is a difference in rates between the divisions. Cost structure. They would be losing $ by having express del ground pkgs at ground's rates. Do you understand that concept?

 

[MAKAVELI]

There is a reason there is a difference in rates between the divisions. Cost structure. They would be losing $ by having express del ground pkgs at ground's rates. Do you understand that concept?

Like I said before, cut out the middle man ( you ) and combine the the opco . Then the rates are a moot point.

 

[bbsam]

There is a reason there is a difference in rates between the divisions. Cost structure. They would be losing $ by having express del ground pkgs at ground's rates. Do you understand that concept?

No. The fact is that the only way they lose money is to not pick up and deliver the packages. If they pull a trailer across the state and take it to the Express terminal three miles away from us instead of to us, absolutely $0 is lost. Those packages weren't going Express anyway. The only thing that happened is that Express took some of the pressure off HD. The extra cost of delivering those packages is negligible compared to not servicing them. We won't make as much profit off it, but we won't lose on it and it will still go to FDX rather than UPS.

 

[bbsam]

Like I said before, cut out the middle man ( you ) and combine the the opco . Then the rates are a moot point.

Wrong. Then FedEx loses its RLA status and all those Ground drivers become a costlier asset.

 

[MAKAVELI]

No. The fact is that the only way they lose money is to not pick up and deliver the packages. If they pull a trailer across the state and take it to the Express terminal three miles away from us instead of to us, absolutely $0 is lost. Those packages weren't going Express anyway. The only thing that happened is that Express took some of the pressure off HD. The extra cost of delivering those packages is negligible compared to not servicing them. We won't make as much profit off it, but we won't lose on it and it will still go to FDX rather than UPS.

So you are saying Express is profitable? Got it.

 

[bbsam]

So you are saying Express is profitable? Got it.

Absolutely. Just not as profitable dollar for dollar as Ground.

 

[MAKAVELI]

Absolutely. Just not as profitable dollar for dollar as Ground.

Well that's certainly a change in attitude.

 

[bbsam]

Well that's certainly a change in attitude.

Not really. Just because Express is profitable is no excuse to overpay couriers to do what Ground drivers make as far as Fred is concerned. Fred will get to his double digit profits for Express one way or another. You and I both know the couriers and staff are going to be the largest part of that way.

 

[MAKAVELI]

Not really. Just because Express is profitable is no excuse to overpay couriers to do what Ground drivers make as far as Fred is concerned. Fred will get to his double digit profits for Express one way or another. You and I both know the couriers and staff are going to be the largest part of that way.

Overpaid? I think not. More like underpaid and overworked. Management and contractors is where the fat is. There is a breaking point at Express and FedEx will find that out the hard way.

 

[bbsam]

Fred's experience with Ground says otherwise.

 

[HomeDelivery]

Overpaid? I think not. More like underpaid and overworked. Management and contractors is where the fat is. There is a breaking point at Express and FedEx will find that out the hard way.

um, those 2 items i highlighted are Ground's/ HD's motto since it's inception...

so, as they (& UPS) tries to make the stocks look good for the market, they will squeeze even more pennies out of you while maintaining productivity

 

[MrFedEx]

Not really. Just because Express is profitable is no excuse to overpay couriers to do what Ground drivers make as far as Fred is concerned. Fred will get to his double digit profits for Express one way or another. You and I both know the couriers and staff are going to be the largest part of that way.

You just crossed the line. We "don't do what Ground drivers do". Your arrogant, superior attitude needs a readjustment, and this Peak might help you see the light. A tenth of Ground drivers might become effective Express couriers...at best. The problem is that you and Fred think alike in that a warm body behind the wheel is all it takes. That would be incorrect.