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Former FedEx insider says separate operations don't make sense
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<blockquote data-quote="bacha29" data-source="post: 4125145" data-attributes="member: 58386"><p>Pay attention to what Fat Freddy is telling you. The current compressed margins at Express is something he believes is only temporary and doesn't even begin to justify the expense, labor unrest and potential service disruptions that attempting to merge the two operating units is certain to create.....And he's right.</p><p>What you're more likely to see at Ground is something along these lines......Many terminal buildings were built by third party developers and leased to X. Now look for X to turn over those satellite terminals building leases or sold outright to third party operators who will run all final mile operations for the geographical areas over which they have control. X will continue to own the hubs and manage line haul .Something along these lines could be in the works and might help explain the one year contracts. Going forward only those with deep pockets will to do business with Fat Freddy.</p><p>Remember Ground contractors are really nothing more than suppliers with precarious and very ambiguous short term supply agreements .</p></blockquote><p></p>
[QUOTE="bacha29, post: 4125145, member: 58386"] Pay attention to what Fat Freddy is telling you. The current compressed margins at Express is something he believes is only temporary and doesn't even begin to justify the expense, labor unrest and potential service disruptions that attempting to merge the two operating units is certain to create.....And he's right. What you're more likely to see at Ground is something along these lines......Many terminal buildings were built by third party developers and leased to X. Now look for X to turn over those satellite terminals building leases or sold outright to third party operators who will run all final mile operations for the geographical areas over which they have control. X will continue to own the hubs and manage line haul .Something along these lines could be in the works and might help explain the one year contracts. Going forward only those with deep pockets will to do business with Fat Freddy. Remember Ground contractors are really nothing more than suppliers with precarious and very ambiguous short term supply agreements . [/QUOTE]
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