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Is Ground really getting E2 and XS?
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<blockquote data-quote="TUT" data-source="post: 1094976" data-attributes="member: 29298"><p>That has nothing to do with Fedex doing secret deals to move customers from Express to Ground. That is the reality of costs and logistics. That is what I've been trying to convey to drivers here that are nervous. This isn't all a scam to get you, the general corporate realities are, but services and prices are not. Service choice is dictated by the shipping industry. We are putting up multiple warehouses to use ground over express because we are smarter today, we are running the numbers... It is cheaper to put up 3 warehouses country wide, stock them via LTL from containers from China, which we've been smarter going ocean freight over air and ship final to consumer via ground.... all when possible. You company is telling you this as well and they now have conceded the air business is not going to bounce back in terms of continued growth. Hence they are doing a re-org. That said, there are many industries that still need Express services, there are companies that don't have the clout to have multiple warehouses, but their clientele needs packages fast, so it is being offered and used, just not as much as cheaper shipping.</p><p></p><p>It is cheaper to move ground packages vs air packages. Do you agree? Both carriers are priced relatively the same for each, so both have come to the same conclusions.</p><p></p><p>You mention "And if the Fedex discount beats UPS by a percent or two", yes and that can happen either way. It is competitive and price is still king, both companies are putting out quality enough service. There is no across the board Fedex is Cheaper than UPS or vice versa, these things vary and are negotiated. There is no way for Express to be competitive with ground if time is equal or not important. Express is living on speed and some specialty services ground doesn't have.</p></blockquote><p></p>
[QUOTE="TUT, post: 1094976, member: 29298"] That has nothing to do with Fedex doing secret deals to move customers from Express to Ground. That is the reality of costs and logistics. That is what I've been trying to convey to drivers here that are nervous. This isn't all a scam to get you, the general corporate realities are, but services and prices are not. Service choice is dictated by the shipping industry. We are putting up multiple warehouses to use ground over express because we are smarter today, we are running the numbers... It is cheaper to put up 3 warehouses country wide, stock them via LTL from containers from China, which we've been smarter going ocean freight over air and ship final to consumer via ground.... all when possible. You company is telling you this as well and they now have conceded the air business is not going to bounce back in terms of continued growth. Hence they are doing a re-org. That said, there are many industries that still need Express services, there are companies that don't have the clout to have multiple warehouses, but their clientele needs packages fast, so it is being offered and used, just not as much as cheaper shipping. It is cheaper to move ground packages vs air packages. Do you agree? Both carriers are priced relatively the same for each, so both have come to the same conclusions. You mention "And if the Fedex discount beats UPS by a percent or two", yes and that can happen either way. It is competitive and price is still king, both companies are putting out quality enough service. There is no across the board Fedex is Cheaper than UPS or vice versa, these things vary and are negotiated. There is no way for Express to be competitive with ground if time is equal or not important. Express is living on speed and some specialty services ground doesn't have. [/QUOTE]
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