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How about some rampant speculation?
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<blockquote data-quote="Ricochet1a" data-source="post: 945647" data-attributes="member: 22880"><p>Both Express and Ground move about 3.7 million pieces a day now.</p><p></p><p>A 28% bump for Ground (not hopeful, but anticipated) has to be a result of shifting of services from somewhere. That amounts to an increase of almost a million pieces a day.</p><p></p><p>That would be beyond the best dream of any sales type to get an increase of volume, within a short time frame, and on a supposed date certain.</p><p></p><p>Look at page 19 of the report.</p><p></p><p>Express has revenue of $10.7 Billion for domestic Express volume. $7.75 Billion of that is for overnight volume, the remainder is for "deferred" volume (non-overnight).</p><p></p><p>As a percentage of US domestic revenues, overnight volume brings in 72.42% of revenue.</p><p></p><p>Non overnight revenue is the difference between the above and 100%, or just shy of 28%....</p><p></p><p>I haven't heard of anything coming this quickly, but I do know that Express is on a trend towards buliding new, larger stations right now. No news on large purchases of equipment for Ground facilities either at this stage.</p><p></p><p>However... with the threat of unionization eliminated within Express now, if Fred wanted to pull the trigger on shifting of volume, there isn't much holding him back.</p><p></p><p>As always, look for the installation of caster decking in Ground terminals as the first sign the trigger has been pulled. I wouldn't anticipate Express making any announcement (either publically or internally) until they have all the infrastructure already in place and procedures in place for moving 2nd/3rd day volume directly from the ramps to Ground terminals.</p><p></p><p>Part of getting the infrastructure in place though would be notifying Ground contractors to "expand" their capability in anticipation of the shift, without actually telling them what the "new volume" is or where it is coming from. If Ground was notified that some new account was gained (or will be) from UPS, they'd include that as part of the rationale for expansion of capability. This "source" of bbsam's (I use sources too...) was very clear about an increase of volume but mum on where it was coming from.</p><p></p><p>You can connect the dots if you want. At this point though, I haven't heard any confirming data from the people that keep me up to speed.</p></blockquote><p></p>
[QUOTE="Ricochet1a, post: 945647, member: 22880"] Both Express and Ground move about 3.7 million pieces a day now. A 28% bump for Ground (not hopeful, but anticipated) has to be a result of shifting of services from somewhere. That amounts to an increase of almost a million pieces a day. That would be beyond the best dream of any sales type to get an increase of volume, within a short time frame, and on a supposed date certain. Look at page 19 of the report. Express has revenue of $10.7 Billion for domestic Express volume. $7.75 Billion of that is for overnight volume, the remainder is for "deferred" volume (non-overnight). As a percentage of US domestic revenues, overnight volume brings in 72.42% of revenue. Non overnight revenue is the difference between the above and 100%, or just shy of 28%.... I haven't heard of anything coming this quickly, but I do know that Express is on a trend towards buliding new, larger stations right now. No news on large purchases of equipment for Ground facilities either at this stage. However... with the threat of unionization eliminated within Express now, if Fred wanted to pull the trigger on shifting of volume, there isn't much holding him back. As always, look for the installation of caster decking in Ground terminals as the first sign the trigger has been pulled. I wouldn't anticipate Express making any announcement (either publically or internally) until they have all the infrastructure already in place and procedures in place for moving 2nd/3rd day volume directly from the ramps to Ground terminals. Part of getting the infrastructure in place though would be notifying Ground contractors to "expand" their capability in anticipation of the shift, without actually telling them what the "new volume" is or where it is coming from. If Ground was notified that some new account was gained (or will be) from UPS, they'd include that as part of the rationale for expansion of capability. This "source" of bbsam's (I use sources too...) was very clear about an increase of volume but mum on where it was coming from. You can connect the dots if you want. At this point though, I haven't heard any confirming data from the people that keep me up to speed. [/QUOTE]
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