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