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FedEx Discussions
FedEx vs UPS Profit margins
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<blockquote data-quote="vantexan" data-source="post: 3823315" data-attributes="member: 24302"><p>FedEx couriers now take 9 years to top out, assuming they stick to the annual step program. Most Express freight is flown, most UPS freight is trucked. Just costs a lot more to fly than truck. Which is why Ground has made FedEx more profitable with the low pay and the trucking. Because Express packages cost a lot more than typical UPS packages UPS handles a lot more freight. Ground is cutting into that a bit, but between lower overall costs and much higher volume UPS is able to pay better. What FedEx makes in profit is small in comparison to what it pays in payroll. The money isn't there to pay UPS comparable pay. They could have been paying better all along and topping out faster but they wanted to grow Ground. Robbed Peter(employees) to pay Paul. Now that Ground is on solid footing they're paying Express better. Only time and inflation will improve pay, but that's a wash.</p></blockquote><p></p>
[QUOTE="vantexan, post: 3823315, member: 24302"] FedEx couriers now take 9 years to top out, assuming they stick to the annual step program. Most Express freight is flown, most UPS freight is trucked. Just costs a lot more to fly than truck. Which is why Ground has made FedEx more profitable with the low pay and the trucking. Because Express packages cost a lot more than typical UPS packages UPS handles a lot more freight. Ground is cutting into that a bit, but between lower overall costs and much higher volume UPS is able to pay better. What FedEx makes in profit is small in comparison to what it pays in payroll. The money isn't there to pay UPS comparable pay. They could have been paying better all along and topping out faster but they wanted to grow Ground. Robbed Peter(employees) to pay Paul. Now that Ground is on solid footing they're paying Express better. Only time and inflation will improve pay, but that's a wash. [/QUOTE]
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