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Best Peak in Many Years
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<blockquote data-quote="MrFedEx" data-source="post: 1489653" data-attributes="member: 12508"><p>FedEx lucked-out this Peak. Good weather, and lower than predicted volumes helped. UPS planned and executed extremely well, and I think FedEx reacted tothis, but much later, and their "solution" was very expensive in the form of cartage agents in many locations. If Fred was paying them $20 per hour and the contractor another $15 to $20 per hour, how much profit was FedEx making?</p><p></p><p>We always hear them saying "we cannot afford UPS wages". Well, Fred <em>was</em> paying the equivalent of UPS wages this year. We'll see how Express profits respond.</p><p></p><p>Was I wrong about Express Armageddon this year? Obviously. But with typical weather and predicted volumes, it probably would have happened. In our district I have heard that it was 30% less than predicted, which is pretty significant.</p><p></p><p>Maybe they're all high-fiving each other right now in Memphis, but they shouldn't be. This company is a mis-managed cluster at all levels, and they got lucky this year.</p><p></p><p>No skill...just luck.</p></blockquote><p></p>
[QUOTE="MrFedEx, post: 1489653, member: 12508"] FedEx lucked-out this Peak. Good weather, and lower than predicted volumes helped. UPS planned and executed extremely well, and I think FedEx reacted tothis, but much later, and their "solution" was very expensive in the form of cartage agents in many locations. If Fred was paying them $20 per hour and the contractor another $15 to $20 per hour, how much profit was FedEx making? We always hear them saying "we cannot afford UPS wages". Well, Fred [I]was[/I] paying the equivalent of UPS wages this year. We'll see how Express profits respond. Was I wrong about Express Armageddon this year? Obviously. But with typical weather and predicted volumes, it probably would have happened. In our district I have heard that it was 30% less than predicted, which is pretty significant. Maybe they're all high-fiving each other right now in Memphis, but they shouldn't be. This company is a mis-managed cluster at all levels, and they got lucky this year. No skill...just luck. [/QUOTE]
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