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UPS Discussions
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<blockquote data-quote="worldwide" data-source="post: 6002106" data-attributes="member: 2193"><p>The volume they have been cutting includes customers with low-margin or even unprofitable business. FedEx has been doing the same thing. Why would a business keep a customer that they are not making profit from? Those customers also have limited choices in the market as USPS has also been raising rates so they have to sign with one of the big three or ship some volume with regional carriers but that limits the customers reach and service is not always that great. Keep in mind that UPS posted a 6.5% year-over-year increase in average daily U.S. volume in Q3, its highest growth rate in three years. To be fair, that's an increase over a crappy period of time with depressed volume but it does show growth so at least they are gaining, presumably, volume lost from the negotiations period as well as FedEx and/or USPS volume.</p></blockquote><p></p>
[QUOTE="worldwide, post: 6002106, member: 2193"] The volume they have been cutting includes customers with low-margin or even unprofitable business. FedEx has been doing the same thing. Why would a business keep a customer that they are not making profit from? Those customers also have limited choices in the market as USPS has also been raising rates so they have to sign with one of the big three or ship some volume with regional carriers but that limits the customers reach and service is not always that great. Keep in mind that UPS posted a 6.5% year-over-year increase in average daily U.S. volume in Q3, its highest growth rate in three years. To be fair, that's an increase over a crappy period of time with depressed volume but it does show growth so at least they are gaining, presumably, volume lost from the negotiations period as well as FedEx and/or USPS volume. [/QUOTE]
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