Fast Lane Ground

[scratch]

What does everybody think about the new Fast Lane ground service enhancement? We are being briefed on this in the morning PCM's this week. For those of you not in the affected areas, UPS has upgraded our Ground Service by hiring a thousand new Feeder Drivers to shorten the time it takes to get packages between major markets. For example, here in Atlanta, it will take two days instead of three to ship to New York City. Most of the major cities from here are Dallas/Ft. Worth, Houston, San Antonio, Denver, NYC, Long Island, areas of Northern New Jersey, states of Pennsylvania, and Kansas. In other parts of the country, the Feeder runs will be different of course. We had a lot of Package Drivers move up into Feeder a couple of months before Peak Season, now I understand
why. We should be able to gain back some lost volume from our competitors, I see this as a great situation for us. Besides more Feeder jobs, I would think that more Hub people would be hired to make sure the dispatch times are met.

 

[brownboxman13b]

We havent heard too much here in Oregon. I am not sure why . Probably because we will not be affected by the new Fast Lane

 

[dannyboy]

Anything that gets the loads to where they are supposed to go earlier, so the drivers can leave earlier is a good thing.

Now if they just get it to the trickle down stage and get everyones loads in on time............

d

 

[tieguy]

little bit of a gamble. Its adding a lot of cost. If it results in new volume we win. If not we cringe when they announce earnings.

 

[handrail_hank]

What a great idea! Put more people on the payroll so we can give the customer better and faster service. Wonder why someone didn't think of this sooner.

 

[Hangingon]

Is it guaranteed to be delivered in that window? Seems like we'd be losing some of our two and three day air with this service to be replaced with ground.

 

[Coldworld]

brown box man, you wouldnt happen to work at swan island, would you???

 

[Coldworld]

if ups is beating fedex by one day to metro areas this is going to shift volume from fedex and the post office. On a side note, the basic accounts are making a major dent in the post office. I have basic service everyday and am seeing new accounts monthly. Saw spiegel today and know that the post office had this account. This is MILLIONS of new packages yearly, the post office better take notice. It will be interesting how much "UPS FREIGHT" will grow after they rebrand the trucks and trailers. Im sure it will be double digit volume growth especially since we will be taking volume from fedex and yellow, guarenteed.

 

[Coldworld]

hangingon, people will still send 2 day air and 3 day. How many drivers see next day delivered within the same city. Its like what monte said, its amazing what people will pay for the great service, ups is no exception. I dont think dhl and the post office can keep up with the quicker ground times. Even their own management said that their service sucked last year and they were a failure....that pretty much sums it up.

 

[dannyboy]

What a great idea! Put more people on the payroll so we can give the customer better and faster service. Wonder why someone didn't think of this sooner.

Hand rail, they did think of it, almost 100 years ago. And only in the last 15 or so has it been prostituted to what we have now. Maybe its not too late?
d

 

[beatupbrown]

little bit of a gamble. Its adding a lot of cost. If it results in new volume we win. If not we cringe when they announce earnings.

Tie that is the problem with large companys and ie wall street they look at quarter earnings fear of the stock going down .

 

[25yrvet]

Gotta get the pas preload system working better. What good is it if the pkg gets to the ctr a day earlier & is misloaded/missed on that same day?

 

[an anonymous guest]

UPS Speeds up Ground Service: (see attached)

Go UPS!
P71

 

[over9five]

25yrvet has an excellent point. We start this new enhanced ground service while PAS/EDD is crippleing us.

 

[wkmac]

These new lane enhancements was such a big deal that they rang the bell at Corp. The primary focus on this rollout was 10 major metro areas but I'm betting this is only the beginning of more to come if this proves to be effective. Being in one of those 10 markets I can tell you since we started the lane enhancements last month (went public this week) our volume has been closer to peak season than anything else and now having gone public I'm almost scaried to see what will happen. The growing pains could be a plenty but that's a good problem to have if you're gonna have problems.

 

[beentheredonethat]

Most of the lane enhancements brought us to parity with FDX Ground. We are still behind them in a handful of routes. But we are ahead of them in more lanes then we are behind. We were kind of lucky that FDX didn't really exploit their competitive advantage over us that much over the last few years. Now that we have the overall advantage (although just a slight advantage) we are correctly advertising it so hopefully we can gain market share. I agree with another poster, we may lose some 2day air and 3 day select volume to our own ground service. But it's better to have it shipped UPS Ground then not UPS at all. The opinion of corporate is we will get more volume from the competitors then we will lose of our own Air volume to our ground volume.

 

[wkmac]

Most of the lane enhancements brought us to parity with FDX Ground. We are still behind them in a handful of routes. But we are ahead of them in more lanes then we are behind. We were kind of lucky that FDX didn't really exploit their competitive advantage over us that much over the last few years. Now that we have the overall advantage (although just a slight advantage) we are correctly advertising it so hopefully we can gain market share. I agree with another poster, we may lose some 2day air and 3 day select volume to our own ground service. But it's better to have it shipped UPS Ground then not UPS at all. The opinion of corporate is we will get more volume from the competitors then we will lose of our own Air volume to our ground volume.

beentheredonethat,
Thanks for pointing out we were in fact catching up. Ironically as you posted the above I was learning this very thing from a manager at work who was explaining the whole thing in more detail. Tie made the point about cost and that is a good point that is hard to argue. From what I understand most of this enhancements have come as a result of pulling loads off the train and putting them on the road. I don't know the exact figures but sending a trailer from the Atlanta to California via rail is around $2k and going over the road is way more than that. Fuel bill alone is probably near the $2k mark. That trailer will not only need to be full but loaded max density for sure.

Ashame we can't combine volume with the new UPS Freight and dual utilize on the same leg but that would have so many tricks and traps I wouldn't want to even go there. Maybe one day we can to everyone's happiness. If Teamster's can/allowed to organize UPS Freight and does so, at least I see nothing on the labor side to stop it other than fighting over senority when the two are co-mingled.

Have a good weekend. Our weather is going to be fantastic.
YEEEEEE-HAAAAAAW

 

[Anonymous Brown Clown]

Cost of over the road (OTR) versus, trailer on flat car (TOFC)

Cost of over the road (OTR) versus, trailer on flat car (TOFC)

Let's use the example of Altlanta, GA to Los Angelas, Ca of costing approx. $2k per a trailer and a distance of 2216 miles. Currently the average US national diesel cost is $2.545 per/gal. OTR average fuel economy of 5.5 mi/gal 2216/5.5*$2.545=$1025.40 point to point, but if using meet points (more than one) the cost needs to be doubled $1025.40*2=$2050.80. So the approx fuel needed to relay two trailers form Atlanta to L.A. and two from L.A. to Atlanta would be $2050.80. Total of those four trailers sent on the rail appox. $2k*4=$8k, plus at the average diesel cost the rail is charging either a 16% fuel surcharge on total cost or $0.118 per/mi. ($8k*1.16=$9280 or 2216* .118*2 =$522.98 +$8k= $8522.98)

TOFC approx $8522.98 for 4 trailers (2 from Atlanta to L.A.) and
(2 from L.A. to Atlanta).

OTR approx $2050.80 for fuel, leaving $8522.98-$2050.80=$6472.18,
estimated drive time from Rand Mcnalley is 33 hrs. 45 mi.
approx 68 hrs on road time total for all drivers combined, so
unless drivers are getting paid
$6472.18/68 hrs.= $95.18 per/hr. OTR road cost less.

Which would explain why all the big OTR trucking companies (Schneider, J.B. Hunt, U.S. Express just to name a few) did not start putting trailers on the train until they could not get enough drivers to pull them.

 

[retired]

Interesting comparison anonymous brown clown.

 

[sendagain]

Good job anonymous,

Now calculate how much money FedEx will owe in taxes if all their ground drivers are determined to be employees.