From The Chairman: Transition to Ground

Discussion in 'FedEx Discussions' started by MrFedEx, Feb 16, 2020.

  1. Cactus

    Cactus Just telling it like it is

    Matter to who?
  2. bbsam

    bbsam Moderator Staff Member

    Me, my wife and my kids. Duh.
  3. bacha29

    bacha29 Well-Known Member

    In light of what is happening to the industry overall does anyone actually matter? When the current rate destruction hits rock bottom and paper boys are making more money than contractor employed drivers it is then only a matter of time until the "next man up" becomes the last man up.
  4. yadig

    yadig Member

    I agree.. I’ve never met a ground driver that was happy in his job. I Noticed a ground guy who went to ups, he’s loving that job.
  5. Cactus

    Cactus Just telling it like it is

    Oh I get it. You mean your REAL bosses.
  6. yadig

    yadig Member

  7. floridays

    floridays Well-Known Member

    You don't understand how markets (Wall Street, institutional,) and individual holders would require a greater return if an alternative solution was available?

    You are correct, it is totally unfathomable that a holding company should use one of its operating companies to gain a larger return for it's shareholders. Sarcasm, if you do not recognize it.

    Exactly where do I go to buy FEDEX Ground stock?
    Exactly where do I go to buy FEDEX Express stock?

    Exactly where do I go to buy stock in FEDEX?

    It was going to happen, it was only a matter of time, I only think the market forced FEDEX hand.

    FEDEX Corp. would have preferred a later date, a time that would have been optimal for the corporation and shareholder value alike.

    My opinion and analysis only.

    I have expressed this to friends and colleagues for over a decade.
    It is the only thing that made any sense.
  8. zeev

    zeev Active Member

    Stock was 277 two years ago down to 130’s now 150’s what changed was Amazon the idiocy of running 2 delivery systems side by side has been exposed.
  9. bacha29

    bacha29 Well-Known Member

    Want to know how the volume shift to Ground is going to work out in the rural areas? Just exactly how do they plan on trucking those Express boxes 75 miles from the regional airport to the Ground terminal I was at by 7 AM? The Express shed is about 30 miles from the airport and they're lucky to be out by 9:30. Then what? Hold a guy back to be dispatched at 10:30-11 AM then send him out to run 250 miles doing 30 Express stops for an e-commerce rate?

    Let's go ask Dano. He knows everything.
  10. It will be fine

    It will be fine Well-Known Member

    They are being diverted at the station of origin. They will arrive on the same trailers the rest of the Ground volume does.
  11. bacha29

    bacha29 Well-Known Member

    Are you saying that a 2-3 day Express box will make it from Boise to Boston in that time frame?
  12. It will be fine

    It will be fine Well-Known Member

    What they’ve announced so far, those packages will remain in the Express network.
  13. vantexan

    vantexan Well-Known Member

    SO resi's are due by 8 p.m. I would imagine they would have a Ground guy with a 2 can straight truck picking up the pkgs at the ramp. And they do take containers off in a certain order so that locations the farthest out get unloaded off the aircraft first.
  14. vantexan

    vantexan Well-Known Member

    Not according to what FedEx stated. All Express freight, except for locally delivered pkgs the stations keep, will go to ramps which run a sort. That way instead of having all stations under that ramp running freight all over they'll have a central collection point then turn over all regional freight that Ground will deliver instead of flying it to the Hub. The rest that's sorted at the hubs will be flown on to their respective ramps. Any freight that Ground would deliver from those shipments will be handed over at each ramp. So Ground should be getting freight from Express ramps twice a day.
  15. It will be fine

    It will be fine Well-Known Member

    I hope you are correct. That’ll be a nice boost in volume. It feels like that’ll be a phase 2 of this rollout though, doesn’t make sense for every ramp to have Ground pickups with only Freight from NC being diverted.
  16. 59 Dano

    59 Dano I just want to make friends!

    FedEx stated that they will be handed off at the origin ramp. I don't know where you got the idea that they're also handing off freight at the destination ramp.
  17. vantexan

    vantexan Well-Known Member

    According to that little chart Ground is taking over all resi SO, 2 day, 3 day, and International Economy that aren't one of the exceptions listed. If Ground is only doing area freight around origin stations, and not taking the incoming freight from out of the area, then in many if not most markets they won't be doing that much and everyone can relax.
  18. bacha29

    bacha29 Well-Known Member

    I think you're right. It will by and large be pretty much a local operation. No contractor is going to be willing to haul Fat Freddy's junk very far for what is for all intents and purposes Likewise given it's constraints and limitations I can't see where it's going to do much to improve the corporation's earnings numbers given that's it's problems are systemic in nature and far more complex.
  19. Fred's Myth

    Fred's Myth Nonhyphenated American

    Bacha’s right, close the doors!

    Bacha has spoken!
  20. vantexan

    vantexan Well-Known Member

    I think the point is Ground is already in those areas too so why have two different people out there when one can get it done for less cost. I'm assuming that FedEx will pay the contractors more to do this but the overall savings will be substantial. An analyst in one article I saw somewhere said it should save FedEx about $600 million a year.