FedEx vs UPS. How does UPS do it?

fedx

Extra Large Package
How does UPS have their stock rising while FedEx is sinking? UPS is a Wall Street darling while FedEx has Wall Street concerned. How does UPS pay most of their drivers well over $30/hr (while topping them out in less than 4 years) while FedEx mostly pays in the high teens to middle $20's per hour and takes 20 years to top out-yet UPS is more successful? Moreover, FedEx uses contractors for their huge Ground operation so they don't have to pay any benefits, 401K, or pension. FedEx is using all kinds of shortcuts while UPS doesn't, yet UPS is blowing FedEx out of the water. It should be the other way around.

I know some will say it's all based on international shipments being down, but UPS ships internationally too. Maybe FedEx should have stayed domestic then if it's going to bring down the company like this. Sounds like mismanagement if they took some huge gamble on international shipments and it failed to pay off. TNT is like a cement block dragging down FedEx as well. Now we're all "paying" for their mistake(s). No real raise this year-just a cola at best.

Since wages are the biggest expense at a company, how is UPS doing so well while FedEx isn't even though FedEx pales in comparison pay wise compared to UPS?
 

SmithBarney

Well-Known Member
How does UPS have their stock rising while FedEx is sinking? UPS is a Wall Street darling while FedEx has Wall Street concerned. How does UPS pay most of their drivers well over $30/hr (while topping them out in less than 4 years) while FedEx mostly pays in the high teens to middle $20's per hour and takes 20 years to top out-yet UPS is more successful? Moreover, FedEx uses contractors for their huge Ground operation so they don't have to pay any benefits, 401K, or pension. FedEx is using all kinds of shortcuts while UPS doesn't, yet UPS is blowing FedEx out of the water. It should be the other way around.

I know some will say it's all based on international shipments being down, but UPS ships internationally too. Maybe FedEx should have stayed domestic then if it's going to bring down the company like this. Sounds like mismanagement if they took some huge gamble on international shipments and it failed to pay off. TNT is like a cement block dragging down FedEx as well. Now we're all "paying" for their mistake(s). No real raise this year-just a cola at best.

Since wages are the biggest expense at a company, how is UPS doing so well while FedEx isn't even though FedEx pales in comparison pay wise compared to UPS?

I think FedEx is doing well, what FedEx isn't doing well is predicting it's future. They missed the mark(that they predicted)
It's like telling your spouse you are going to make $45,000 next year, but you only made $43,000...

Yes TNT took a hit, but 2019 vs 2018 the numbers are better for 2019, but not as good as they predicted.
FedEx is making $$ and a lot of it, just not as much as they wanted... while growth slowed, it still grew.

FedEx Revenue 2006-2019 | FDX
 

Cactus

Just telling it like it is
From what I understand, Fred S makes millions in his annual salary while the CEO of UPS pay is a bit under 400K.

That’s just the tip of the iceberg.
 

gman042

Been around the block a few times
Do you think maybe that it is the business model that puts UPS ahead? UPS will send 1 truck with 1 driver to a destination. FedEx will send several. Seems like an efficiency issue
 

oldngray

nowhere special
Honestly, I’m okay with what Fred makes, after all, he founded the company and took all the risks, plus he pushes hard for FedEx. What I have a problem with is what the executives under him make.
Did you see where he was involved in that WW2 vet getting a Bronze star a few days ago?
 

Operational needs

Virescit Vulnere Virtus
How does UPS have their stock rising while FedEx is sinking? UPS is a Wall Street darling while FedEx has Wall Street concerned. How does UPS pay most of their drivers well over $30/hr (while topping them out in less than 4 years) while FedEx mostly pays in the high teens to middle $20's per hour and takes 20 years to top out-yet UPS is more successful? Moreover, FedEx uses contractors for their huge Ground operation so they don't have to pay any benefits, 401K, or pension. FedEx is using all kinds of shortcuts while UPS doesn't, yet UPS is blowing FedEx out of the water. It should be the other way around.

I know some will say it's all based on international shipments being down, but UPS ships internationally too. Maybe FedEx should have stayed domestic then if it's going to bring down the company like this. Sounds like mismanagement if they took some huge gamble on international shipments and it failed to pay off. TNT is like a cement block dragging down FedEx as well. Now we're all "paying" for their mistake(s). No real raise this year-just a cola at best.

Since wages are the biggest expense at a company, how is UPS doing so well while FedEx isn't even though FedEx pales in comparison pay wise compared to UPS?
Sheer volume.
 

Fred's Myth

Nonhyphenated American
Do you think maybe that it is the business model that puts UPS ahead? UPS will send 1 truck with 1 driver to a destination. FedEx will send several. Seems like an efficiency issue
It's expensive to contort your business practice to avoid treating your employees equitably vs. what your competitors pay, in order to eliminate unionization that would force that equity.
"Efficiencies be damned, at least we don't have to negotiate with a union!"
 

bacha29

Well-Known Member
It's expensive to contort your business practice to avoid treating your employees equitably vs. what your competitors pay, in order to eliminate unionization that would force that equity.
"Efficiencies be damned, at least we don't have to negotiate with a union!"
Exactly. Ground contractors can't do anything X can't do themselves except for the only 3 underlying reasons for which they exist. Provide X with trucks which are one of the fastest depreciating pieces of equipment known to the US economy, provide labor at a pay rate that image conscious X wouldn't be caught dead paying themselves and to serve as a firewall against efforts to gain union representation.
The question going forward is how much pain is the company willing to take , how big a price is it willing to pay in order not to have to recognize and negotiate with another union?
 

bacha29

Well-Known Member
From what I understand, Fred S makes millions in his annual salary while the CEO of UPS pay is a bit under 400K.

That’s just the tip of the iceberg.
What little is known about publicly is his privately held holding company and how it affects his total compensation.
 
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