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

bbsam

Moderator
Staff member
I got half way through the transcript from the earnings call and I gave up. Everything was we didn't know or we didn't expect. We didn't know upgrading ground to 7 days would be so expensive. We didn't know that volume for cyber monday would be 37 million not 33 million. We didn't know it would take so long to integrate TNT. We didn't know Christmas was Dec 25th this year (OK made that one up.)

We used to be the ones with the ideas, not anymore. It's all reactionary.

The top is focused on ground, they keep building more ground hubs to make ground faster to keep up with Amazon but they really can't. Amazon has deep pockets and innovative people. Our folks couldn't see that a shorter peak window meant more packages moving in less time.

Future plans: Walgreens and Dollar General so that 90% of the US can be 10 minutes or less from a "Fedex" location for drop off and pickup. Focus on the package return segment, they see big dollars there. Retire planes, retire pilots and get TNT fully integrated.

Right now we still do Amazon international, they can't do it. Maybe they would like to take TNT off of our hands?

They didn't mention anything about China and our China debacle and if that has had any effect. Maybe Amazon would like to buy our Asia routes, too.

II think it will be status quo until the election in November.
I don’t think they can remain status quo. The Ground segment got absolutely obliterated in a lot of areas and hubs swamped. Add on to that God knows how much “fully integrated Smartpost” and it’s peak explosion...

I honestly have no idea how they plan to pull that off. They can’t build infrastructure fast enough.
 

bbsam

Moderator
Staff member
Very much so and getting lots of bad publicity.
It’s pretty funny really. Our building was sending drivers across state to help clean up the mess. They were offering up to $20 per stop above contracted pay to get contractors to help.

And we’re not even talking about weather impacted areas. There are some locations where management has 0 control on what happens in the building.

Peak 2020 will be very interesting.
 

Operational needs

Virescit Vulnere Virtus
It’s pretty funny really. Our building was sending drivers across state to help clean up the mess. They were offering up to $20 per stop above contracted pay to get contractors to help.

And we’re not even talking about weather impacted areas. There are some locations where management has 0 control on what happens in the building.

Peak 2020 will be very interesting.
So did you cash in on the extra money?
 

Operational needs

Virescit Vulnere Virtus
It’s pretty funny really. Our building was sending drivers across state to help clean up the mess. They were offering up to $20 per stop above contracted pay to get contractors to help.

And we’re not even talking about weather impacted areas. There are some locations where management has 0 control on what happens in the building.

Peak 2020 will be very interesting.
It was bad for Ground in my area also. I had a customer come up to me in a neighborhood one day last week asking about a Ground package that had gone out on the road three days in a row with no attempts. He showed me the updates on his phone. I felt bad for him, especially since it was signature required. I finally saw some FedEx Ground guys in his neighborhood early on the fourth day.
 

bbsam

Moderator
Staff member
How do they make all the changes they are now making AND fix the glaring incompetence in the next 11 months? I honestly have no idea.
 

newgirl

Well-Known Member
I don’t think they can remain status quo. The Ground segment got absolutely obliterated in a lot of areas and hubs swamped. Add on to that God knows how much “fully integrated Smartpost” and it’s peak explosion...

I honestly have no idea how they plan to pull that off. They can’t build infrastructure fast enough.

I should have qualified that by saying express will remain status quo.
 

newgirl

Well-Known Member
Many great ideas came from the frontline employees. Trouble is management stopped listening or blew them off. That alone had much more negative effect on the whole operation than the top brass will ever understand.
Totally agree. DRA is one example, GIGO
 

It will be fine

Well-Known Member
How do they make all the changes they are now making AND fix the glaring incompetence in the next 11 months? I honestly have no idea.
Wave dispatch. The preload will be going until noon. I’m wondering what the plan is for all the area that will be abandoned with the new e-commerce rate structure. I’ll be staffing way up to cash in on contingency again. I think they have the building capacity but they don’t have the staff to pull it off.
 

bbsam

Moderator
Staff member
Wave dispatch. The preload will be going until noon. I’m wondering what the plan is for all the area that will be abandoned with the new e-commerce rate structure. I’ll be staffing way up to cash in on contingency again. I think they have the building capacity but they don’t have the staff to pull it off.
From the sounds of it, they didn’t have the ability at the hubs to run it all through this peak. That makes for multiple bottlenecks, first at the hub then at the stations.
What are you talking about with “area that will be abandoned”?
 

It will be fine

Well-Known Member
From the sounds of it, they didn’t have the ability at the hubs to run it all through this peak. That makes for multiple bottlenecks, first at the hub then at the stations.
What are you talking about with “area that will be abandoned”?
I think a lot of contractors are going to bail with e-commerce rates. People will lose too much money and walk away. There’s a lot of open CSAs now and I expect there to be many more next year.
 

Route 66

Slapped Upside-da-Head Member
Whiney-assed customers always wanting their stoopid stuff delivered - “my package has been in transit for 3 whole weeks and FedEx still hasn’t gotten it to me yet waa waa waaa” :ashamed:
 

bacha29

Well-Known Member
From the sounds of it, they didn’t have the ability at the hubs to run it all through this peak. That makes for multiple bottlenecks, first at the hub then at the stations.
What are you talking about with “area that will be abandoned”?
He's counting on a bunch of contractors quitting abruptly. If they do it will probably be to their inability to get people to work for nothing. I wonder what makes him think that he can get people to work for nothing? ......Or keep the Teamsters out if he continues to grow in size and therefore becomes a bigger target.
 

bbsam

Moderator
Staff member
I think a lot of contractors are going to bail with e-commerce rates. People will lose too much money and walk away. There’s a lot of open CSAs now and I expect there to be many more next year.
Do you think there’s a point where X decides that THEY have the cost metrics wrong? Because they are wrong.
 

It will be fine

Well-Known Member
That’s inexcusable. There is no reason someone should order a package on December 7 and still not have it yesterday, I don’t care how many snow storms happen. It could have been shipped from China itself faster.
The problem is our systems breakdown when freight starts to roll over. They aren’t built for it. The failures snowball and it’s hard to dig back out. I delivered stuff on Christmas Eve that had a ship date of Dec. 2. The building I was helping was a complete disaster, they had no idea where anything was, I was digging through skids of stuff looking for more stops in the neighborhood I was cleaning up.
 
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