FedEx stock is crashing and burning. What do you think the future will be?

[Purplepackage]

And PM pick up routes would be cut down to a few stops and drop boxes.

I would think pm routes stay the same, we are already going to the same pups as ground anyway

 

[MAKAVELI]

The only way I see 2Day and Express Saver going to Ground is some level of integration and coordination of the opcos. Guaranteed 2Day and 3Day is only viable with same day pu. Ground simply does not have the manpower or control to handle the pu side.

 

[MrFedEx]

In lieu of selling or merging Express they hold fast and choose to get leaner. Not a bad strategy. I feel for the Ground guys in my area. The routes they are on are already heavy.

Being leaner doesn't take them out of the takeover realm. What do you do with a bunch of half full airplanes? If you use them to haul what will now be Ground freight, can Ground legally "purchase" space on those planes without endangering Fred's precious RLA/Express Carrier Exemption? They already buy space for limited locations such as AK and HI, but this would be a wholesale shift in the operation on a very large scale.

This could go to the courts, and Fred could lose. At the very least, he could lose his anti-union Kryptonite.

Could be interesting.

 

[MrFedEx]

The only way I see 2Day and Express Saver going to Ground is some level of integration and coordination of the opcos. Guaranteed 2Day and 3Day is only viable with same day pu. Ground simply does not have the manpower or control to handle the pu side.

The only way I see 2Day and Express Saver going to Ground is some level of integration and coordination of the opcos. Guaranteed 2Day and 3Day is only viable with same day pu. Ground simply does not have the manpower or control to handle the pu side.

If you integrate the opcos, Fred loses the RLA/Express Carrier Exemption.

 

[bacha29]

The only way I see 2Day and Express Saver going to Ground is some level of integration and coordination of the opcos. Guaranteed 2Day and 3Day is only viable with same day pu. Ground simply does not have the manpower or control to handle the pu side.

Not exaclty. They simply say to the contractor: "Here's a new pickup in your sector and this is when you pick it up. We don't care how you do it just do it and if you can't ....well....let's just say we won't forget come contract renewal time."

 

[McFeely]

The only way I see 2Day and Express Saver going to Ground is some level of integration and coordination of the opcos. Guaranteed 2Day and 3Day is only viable with same day pu. Ground simply does not have the manpower or control to handle the pu side.

I tend to agree with this thinking. Express in my area just built a brand new station that combines zip codes from some older stations that were bursting. The Ground terminals near the stations are still a bit of a drive between them, so it's not like they would be easy to integrate/coordinate.

Also, since Express and Ground are still technically separate opcos, there possibly would still have inter-opco charges/fees going between the two separate companies. Not sure how easy that would be to process if Express sent our deferred packages to Ground.

Add into the mix the fact that Ground is just now taking on more SmartPost (100% of it?) and incorporating 7-day delivery. They've got their hands pretty full at the moment.

 

[Purplepackage]

The only way I see 2Day and Express Saver going to Ground is some level of integration and coordination of the opcos. Guaranteed 2Day and 3Day is only viable with same day pu. Ground simply does not have the manpower or control to handle the pu side.

We have a few pup routes that do 40-50 pups almost all doctors offices/lawyers. Just not sure how ground could guarantee that stuff actually gets there

 

[MAKAVELI]

Not exaclty. They simply say to the contractor: "Here's a new pickup in your sector and this is when you pick it up. We don't care how you do it just do it and if you can't ....well....let's just say we won't forget come contract renewal time."

On call pu don't work like that. Customer schedules a pu and is pu same day, sometimes with an hour window. I don't see ground with the added volume of smarpost and our deferred volume being able to handle that.

 

[bbsam]

The only way I see 2Day and Express Saver going to Ground is some level of integration and coordination of the opcos. Guaranteed 2Day and 3Day is only viable with same day pu. Ground simply does not have the manpower or control to handle the pu side.

Not really. The vast majority will just be Ground freight in the transit times. 2Day and 3Day can still exist, just on a smaller scale.

 

[bbsam]

I tend to agree with this thinking. Express in my area just built a brand new station that combines zip codes from some older stations that were bursting. The Ground terminals near the stations are still a bit of a drive between them, so it's not like they would be easy to integrate/coordinate.

Also, since Express and Ground are still technically separate opcos, there possibly would still have inter-opco charges/fees going between the two separate companies. Not sure how easy that would be to process if Express sent our deferred packages to Ground.

Add into the mix the fact that Ground is just now taking on more SmartPost (100% of it?) and incorporating 7-day delivery. They've got their hands pretty full at the moment.

You are assuming they will succeed. They are going to fail miserably this year.

 

[MAKAVELI]

Not really. The vast majority will just be Ground freight in the transit times. 2Day and 3Day can still exist, just on a smaller scale.

The whole concept is to move as much freight through the Ground system as it's the most profitable. I'm just saying in order to keep those services in either system, they have to be pu same day.

 

[McFeely]

You are assuming they will succeed. They are going to fail miserably this year.

"They" being Ground? Or the SmartPost and 7-day deliveries?

I'm really not assuming much as far as success, but that depends on each Ground contractor and his drivers. The contractor in the area where I deliver seems to be keeping pace just fine and having pretty good luck with driver retention, but the 7-day thing is going to be tricky for a lot of them.

 

[IVE GOTTA PACKAGE 4U]

"They" being Ground? Or the SmartPost and 7-day deliveries?

I'm really not assuming much as far as success, but that depends on each Ground contractor and his drivers. The contractor in the area where I deliver seems to be keeping pace just fine and having pretty good luck with driver retention, but the 7-day thing is going to be tricky for a lot of them.

Here's an extra $50
We need you to work 7 days a week. LMAO

 

[bbsam]

"They" being Ground? Or the SmartPost and 7-day deliveries?

I'm really not assuming much as far as success, but that depends on each Ground contractor and his drivers. The contractor in the area where I deliver seems to be keeping pace just fine and having pretty good luck with driver retention, but the 7-day thing is going to be tricky for a lot of them.

Actually 7 day is (from what I hear) easier to staff.

 

[silenze]

Fedex has to figure out how to add temporary capacity.

 

[vantexan]

And PM pick up routes would be cut down to a few stops and drop boxes.

Or they would make sure FTers got off the clock before any chance at OT.

 

[bacha29]

On call pu don't work like that. Customer schedules a pu and is pu same day, sometimes with an hour window. I don't see ground with the added volume of smarpost and our deferred volume being able to handle that.

Not an easy thing for Ground to do when the nearest wagon is 40 miles away at the time of the day when that PU window opens Granted truck deployment is now a bit larger but it still means pulling off and diverting a considerable distance to many such pickups and made more difficult by the fact that some wagons that were traditionally HD are not returning to the shed at night. And yep, Smartpost will be a nightmare for rural areas. The rural mail carrier can leave his letters in the box at the end of the lane while the Smartpost ox will be expected to somehow drive all the way back the lane to the house often in a vehicle that makes getting stuck much more likely . All that for a box that will pay a lower rate.

 

[Fred's Myth]

You are assuming they will succeed. They are going to fail miserably this year.

Express?

Shed of Amazon bulk, they should see a fast upswing of on-time delivery for those who actually contribute to the profit margin. Better service is an attractive lure to more business.

 

[Fred's Myth]

The whole concept is to move as much freight through the Ground system as it's the most profitable. I'm just saying in order to keep those services in either system, they have to be pu same day.

Does Ground even offer same day PUP's? With a 1-hour window?

 

[MAKAVELI]

Does Ground even offer same day PUP's? With a 1-hour window?

I believe they offer same day in some areas but not all and definitely not an hour window.