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FedEx Ground Moving Via Express?
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<blockquote data-quote="Ricochet1a" data-source="post: 559984" data-attributes="member: 22880"><p>I haven't been able to confirm this on my own, but it does make some sense. Express aircraft are flying with many voids on them, and if they can fill up those spaces with Ground freight out of the Memphis market, they can cut a day or two on shipping time to the east and west coasts. By moving Ground packages at "Express" speed, FedEx may be trying to steal market share from UPS out of the Memphis market and possibly the entire south east.</p><p> </p><p>All FedEx has to do is have the Express "company" charge the lowest possible rate for the space on the aircraft, and Ground would pay that. It is just shifting money from one pocket to another if this is what is going on. The aircraft have to fly, so might as wll fill them up with something, the marginal increase in cost for having that extra weight on the aircraft is practically nil. It would amount to about $3 in fuel for every extra 100 pounds moved to either the east or west coast. If they are adding 15,000 pounds to the aircraft, the marginal cost increase would be about $500 or so. Well worth the price if they can shave a couple of days of the transit time off of Ground packages in an effort to take market share. </p><p> </p><p>It would be all part of the charade of FedEx claiming Express and Ground are two separate operating companies, but are cooperating with each other at every opportunity.</p></blockquote><p></p>
[QUOTE="Ricochet1a, post: 559984, member: 22880"] I haven't been able to confirm this on my own, but it does make some sense. Express aircraft are flying with many voids on them, and if they can fill up those spaces with Ground freight out of the Memphis market, they can cut a day or two on shipping time to the east and west coasts. By moving Ground packages at "Express" speed, FedEx may be trying to steal market share from UPS out of the Memphis market and possibly the entire south east. All FedEx has to do is have the Express "company" charge the lowest possible rate for the space on the aircraft, and Ground would pay that. It is just shifting money from one pocket to another if this is what is going on. The aircraft have to fly, so might as wll fill them up with something, the marginal increase in cost for having that extra weight on the aircraft is practically nil. It would amount to about $3 in fuel for every extra 100 pounds moved to either the east or west coast. If they are adding 15,000 pounds to the aircraft, the marginal cost increase would be about $500 or so. Well worth the price if they can shave a couple of days of the transit time off of Ground packages in an effort to take market share. It would be all part of the charade of FedEx claiming Express and Ground are two separate operating companies, but are cooperating with each other at every opportunity. [/QUOTE]
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