Fred's Myth
Nonhyphenated American
Hey, don't spoil the fun... Just adding to the Chicken Little atmosphere this website has become for desperate Ground contractors clutching at straws.
Ground to absorb Express
- Thread starter dvalleyjim
- Start date
Any Ground contractor present or separated would take umbrage with that remark. Ground management has always had a nasty little habit of taking new directives, new requirements , new demands that are always designed to derive even greater value from contractors and simply dump it on them with little or no advance warning. A practice afforded them by their vague and ambiguous contract language. Successful contractors are therefore always on the prowl looking for signs of a new action that is in keeping with their prior behavior. It would appear that you are just another big ego Express grunt who badly overestimates your value to the company and blind to the cold fact that they can dispose of you in a heartbeat and there's very little you can do about it.Hey, don't spoil the fun... Just adding to the Chicken Little atmosphere this website has become for desperate Ground contractors clutching at straws.
Nah. If I have to, I can always cut driver pay since it is obvious that is what Memphis seems they want.Hey, don't spoil the fun... Just adding to the Chicken Little atmosphere this website has become for desperate Ground contractors clutching at straws.
Gone fishin
Well-Known Member
It's funny how people don't understand that the company makes 55 % of their revenue by the express segment. While the ground and freight making the rest. You will also notice if you research that the ground margins are shrinking and express are growing.
Federal express is express. Period. The two will remain separate.
Federal express is express. Period. The two will remain separate.
You need to learn how to read financial reports.
Gone fishin
Well-Known Member
I do and I did
Gone fishin
Well-Known Member
You read that and still believe Fedex profit lies in Express?
I could see this ending in the next four to eight years of republican dominated politics.
Gone fishin
Well-Known Member
I said margins are shrinking because of e comerce. Like ups. That's a fact
MAKAVELI
Well-Known Member
The profit lies in keeping the two separate. FedEx knows they will never be able to make double digit margins at Express but in order to make Express efficient and sustainable they will need to keep the differed freight.
UpstateNYUPSer(Ret)
Well-Known Member
Our margins are shrinking because of guys like bbsam.
Remember what I said earlier. X may be assembling a contingency plan if the RLA which they have been hiding behind for decades is included in the Trump deregulation plan I'm sure we all remember Smith going up to Trump Tower a couple of days after the election to see the president elect. I'm sure that it was a lot more than a social call. In addition to the TPP you can't reject the possibility that the RLA came up for discussion. Rest assured after having no choice but to sign an APA deal Fat Freddy will never sign another union contract. And the smart contractors like IWBF are preparing for the day when they may find themselves caught in the middle of a X/IBT firefight .
There is no way to prepare for that fight. Either X ponies up the money or they make everyone employees.
That said, I don't see any "joint employee" action going anywhere in this business/ political climate.
Oldfart
Well-Known Member
No doubt Express is the largest of the operating companies and brings in the most revenue but I believe its margins are in the 5% range and ground is in the 15% range. Those numbers will vary but not by much. Revenue and profits are TWO different figures.
X is spending money on both OPCO's in an effort to have the capacity to gain market share, Remember what I said about the analyst downgrading UPS stock? The reason is because he believes that UPS is not expanding it's capacity quickly enough to meet rising E-Commerce driven demand.
Oldfart
Well-Known Member
Express growth is very minimal and has been for a while. Margins have increased due to modernization and increased productivity. The room for growth in express is there, the package count just hasn't grown like it used to. The growth that we have seen is in low margin shippers and services.
It will be fine
Well-Known Member
Express growth will have to be international. The model prices express out of much of the growth in ecommerce. Shippers can't offer free shipping and pay express prices without massive discounts.
Star B
White Lightening
We are to the point of market saturation. Anything we gain will be offset with those switching to digital methods.
Here's how I see it playing out:
1) Express loses RLA protection. They say "to hell with it" and then absorb ground into Express. Allow the Ground employees to become Express to handle the new influx of routes.
2) Status Quo.
3) Express turns into "FedEx Feeder Network", keeps FO a ramp service, and then CTVs all freight to FedEx Orange, friend/K/A Ground. This is after FedEx can figure out how to control contractors even more in light of new deregulation due to Trump.
4) The XS shiftover to Ground. Least plausible as @MAKAVELI said... as FXE has enough routes that spend 100 miles driving delivering 10 packages. They dont need more.
Here's how I see it playing out:
1) Express loses RLA protection. They say "to hell with it" and then absorb ground into Express. Allow the Ground employees to become Express to handle the new influx of routes.
2) Status Quo.
3) Express turns into "FedEx Feeder Network", keeps FO a ramp service, and then CTVs all freight to FedEx Orange, friend/K/A Ground. This is after FedEx can figure out how to control contractors even more in light of new deregulation due to Trump.
4) The XS shiftover to Ground. Least plausible as @MAKAVELI said... as FXE has enough routes that spend 100 miles driving delivering 10 packages. They dont need more.
Shippers are already getting discounts that rival the prices that ground can offer. Why do you think we have so much XS?
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