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Anyone hear of "Coast to Coast 3rd Day" service...
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<blockquote data-quote="Ricochet1a" data-source="post: 1025965" data-attributes="member: 22880"><p>I think you missed the point...</p><p></p><p>With the currently existing Express Saver, "Coast to Coast 3rd Day" IS REDUNDANT - I said that in the lead post.</p><p></p><p>However.... presuming the source on this is accurate (which I do believe, since it makes so much sense), it by necessity (logic exercise), means that existing Express Saver is going to be ended (something which I already know), if Express has already implemented this "service" to select shippers (which I was told has already occurred by FedEx Sales). </p><p></p><p>There was the issue with the termination of Express Saver, of what to do with that 20% of Express Saver volume which couldn't be shifted over to Ground and have delivered within 3 business days (the coast to coast stuff). I commented on this before, what was FedEx going to do with this volume?</p><p></p><p>By my calculations, the number of pieces that were going to be put into "limbo" with the ending of Express Saver (those which couldn't be delivered within 3 days by Ground), came up to between 50,000 and 80,000 pieces a day. That's not something FedEx would ignore.</p><p></p><p>Without going into the financials of "incremental volume", FedEx couldn't just forget about this volume, there was too much end margin there to ignore, since the fixed cost of moving it is being covered by overnight and 2nd day volume. It is the proverbial "icing on the cake" when it comes to margin. </p><p></p><p>This brings up a whole list of issues which will arise when Express Saver is "officially" terminated. Volume which originates on the west coast (to be delivered to the east coast), can be flown into MEMH, then TRUCKED out to most of the southeast, and if Memphis really wanted to allocate assets into dual team rigs (as they do during peak curently), as far north as Pennsylvania (keeping it off of aircraft for the outbound leg). Express would only have to allocate aircraft to get volume up into New England and NY, in order to make 3 day committment in this case. </p><p></p><p>Going the other way, Express would still have to fly this volume, since it couldn't make it out of Memphis to the west coast within 3 days - Memphis is located just too far east for this to occur. </p><p></p><p>Many may be thinking, "So what...". That is why I wanted to see if there was anyone who could get independent confirmatiion. Getting independent confirmation will be DAMN DIFFICULT, since this service ISN'T going to be publically advertised - Express is supposedly only going to offer it to select (presumably high volume) shippers located near the coasts, who want 3rd day service (what they are currently getting with XS), to continue AFTER XS is dumped. </p><p></p><p>Its just another instance of "connecting the dots" in the transformation of Express.</p></blockquote><p></p>
[QUOTE="Ricochet1a, post: 1025965, member: 22880"] I think you missed the point... With the currently existing Express Saver, "Coast to Coast 3rd Day" IS REDUNDANT - I said that in the lead post. However.... presuming the source on this is accurate (which I do believe, since it makes so much sense), it by necessity (logic exercise), means that existing Express Saver is going to be ended (something which I already know), if Express has already implemented this "service" to select shippers (which I was told has already occurred by FedEx Sales). There was the issue with the termination of Express Saver, of what to do with that 20% of Express Saver volume which couldn't be shifted over to Ground and have delivered within 3 business days (the coast to coast stuff). I commented on this before, what was FedEx going to do with this volume? By my calculations, the number of pieces that were going to be put into "limbo" with the ending of Express Saver (those which couldn't be delivered within 3 days by Ground), came up to between 50,000 and 80,000 pieces a day. That's not something FedEx would ignore. Without going into the financials of "incremental volume", FedEx couldn't just forget about this volume, there was too much end margin there to ignore, since the fixed cost of moving it is being covered by overnight and 2nd day volume. It is the proverbial "icing on the cake" when it comes to margin. This brings up a whole list of issues which will arise when Express Saver is "officially" terminated. Volume which originates on the west coast (to be delivered to the east coast), can be flown into MEMH, then TRUCKED out to most of the southeast, and if Memphis really wanted to allocate assets into dual team rigs (as they do during peak curently), as far north as Pennsylvania (keeping it off of aircraft for the outbound leg). Express would only have to allocate aircraft to get volume up into New England and NY, in order to make 3 day committment in this case. Going the other way, Express would still have to fly this volume, since it couldn't make it out of Memphis to the west coast within 3 days - Memphis is located just too far east for this to occur. Many may be thinking, "So what...". That is why I wanted to see if there was anyone who could get independent confirmatiion. Getting independent confirmation will be DAMN DIFFICULT, since this service ISN'T going to be publically advertised - Express is supposedly only going to offer it to select (presumably high volume) shippers located near the coasts, who want 3rd day service (what they are currently getting with XS), to continue AFTER XS is dumped. Its just another instance of "connecting the dots" in the transformation of Express. [/QUOTE]
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