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Lead On... to the death of Expres...
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<blockquote data-quote="TUT" data-source="post: 989357" data-attributes="member: 29298"><p>IMO</p><p></p><p>Mostly Right, some worth debating.</p><p><strong></strong></p><p><strong>"What many of these customers did, was to shift the movement of that volume that "disappeared" from the Express network, to UPS Ground"</strong> <- Many went to Fedex Ground, stayed in the family. </p><p></p><p><strong>"Since FedEx sales can offer substantial discounts on the movement of volume through Ground (compared to UPS product)</strong> <- On the surface you would think Fedex could move ground much cheaper then UPS and pass that on to the customer. But both customers use the same rate matrix (identical) so discounts to the shipper will be what makes the difference. I think overall UPS still gives out slightly cheaper rates. Now will Fedex be making a change in this strategy? If they did it could be a master-stroke. If they can be at a DHL/Regional carrier rate wise with the standards of the ground service, they can really make a swing here. I haven't heard anything of it, but to me it has to be possible, the savings in man-power alone allows then to theoretically charge less then UPS. Does reducing Express overhead allow them to then further reduce ground rates? If so, masterful plan. That is where Fedex Ground can win bigy and that is price. For example regional carriers are much cheaper then UPS or Fedex, if either can get much closer to regionals and keep the service quality. Massive win. This is what a shipper like me is looking for!</p><p></p><p>Comparatively discounts of ground service is much less then Express. Say something like 15% vs 50% for medium to large'ish shipper.</p><p></p><p>I do agree if Express Saver is planning on coming off the books (for sound business reasons) it further strengthens what you are seeing and justifying it, good or bad to the driver. Think about paper publishing workers? They took it in the shorts terribly many years back, I'm sure they weren't happy at all, but what can you do? I bet many other workers outside their industry didn't even make note. So why should anyone care when express service rates are becoming a dinosaur and who that affects? It's just what happens.</p></blockquote><p></p>
[QUOTE="TUT, post: 989357, member: 29298"] IMO Mostly Right, some worth debating. [B] "What many of these customers did, was to shift the movement of that volume that "disappeared" from the Express network, to UPS Ground"[/B] <- Many went to Fedex Ground, stayed in the family. [B]"Since FedEx sales can offer substantial discounts on the movement of volume through Ground (compared to UPS product)[/B] <- On the surface you would think Fedex could move ground much cheaper then UPS and pass that on to the customer. But both customers use the same rate matrix (identical) so discounts to the shipper will be what makes the difference. I think overall UPS still gives out slightly cheaper rates. Now will Fedex be making a change in this strategy? If they did it could be a master-stroke. If they can be at a DHL/Regional carrier rate wise with the standards of the ground service, they can really make a swing here. I haven't heard anything of it, but to me it has to be possible, the savings in man-power alone allows then to theoretically charge less then UPS. Does reducing Express overhead allow them to then further reduce ground rates? If so, masterful plan. That is where Fedex Ground can win bigy and that is price. For example regional carriers are much cheaper then UPS or Fedex, if either can get much closer to regionals and keep the service quality. Massive win. This is what a shipper like me is looking for! Comparatively discounts of ground service is much less then Express. Say something like 15% vs 50% for medium to large'ish shipper. I do agree if Express Saver is planning on coming off the books (for sound business reasons) it further strengthens what you are seeing and justifying it, good or bad to the driver. Think about paper publishing workers? They took it in the shorts terribly many years back, I'm sure they weren't happy at all, but what can you do? I bet many other workers outside their industry didn't even make note. So why should anyone care when express service rates are becoming a dinosaur and who that affects? It's just what happens. [/QUOTE]
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