More bad press from...of course GROUND

[Gone fishin]

Because having one all employee workforce is the best and most efficient system long term. Ground has had a good run for awhile now. But that time is nearing it's end. Costs will continue to rise at ground for expansion and labor costs, lowering profit levels to the point of not as cost effective as having one system.

Ground has run its course

 

[Cactus]

Because having one all employee workforce is the best and most efficient system long term. Ground has had a good run for awhile now. But that time is nearing it's end. Costs will continue to rise at ground for expansion and labor costs, lowering profit levels to the point of not as cost effective as having one system.

Fred will have many sleepless nights trying come up with ways to keep the union out once Express and Ground combine making the RLA argument/shady deal sink like a stone.

 

[Ou812fu]

People will adjust and companies will too. When people figure out the cost and time to drive to a store, stand in line for hours, they'll gladly pay a return fee.

I guess we will see in about 2 years.

 

[It will be fine]

Because having one all employee workforce is the best and most efficient system long term. Ground has had a good run for awhile now. But that time is nearing it's end. Costs will continue to rise at ground for expansion and labor costs, lowering profit levels to the point of not as cost effective as having one system.

Building expansion costs are going to be incurred regardless. Labor costs will be dramatically lower with Ground. Your argument doesn’t make sense.

 

[Gone fishin]

Building expansion costs are going to be incurred regardless. Labor costs will be dramatically lower with Ground. Your argument doesn’t make sense.

Ground margin went from 11 to 6 percent last year. It’s not the golden goose it once was. Efficiency would be one truck one area.

 

[It will be fine]

Ground margin went from 11 to 6 percent last year. It’s not the golden goose it once was. Efficiency would be one truck one area.

Why would that truck run under the Express opco where driver wages would be higher?

 

[MAKAVELI]

Why would that truck run under the Express opco where driver wages would be higher?

Because if they thought they could have made Express a contractor model, they would have by now.

 

[Gone fishin]

Because if they thought they could have made Express a contractor model, they would have by now.

That’s as true as it gets

 

[It will be fine]

Because if they thought they could have made Express a contractor model, they would have by now.

By that logic, if they thought the Express network could handle Ground volume they would have done it by now.

 

[Gone fishin]

By that logic, if they thought the Express network could handle Ground volume they would have done it by now.

Ground out grew itself

 

[It will be fine]

Ground out grew itself

So you think there’s too much freight for Ground to handle. How does running it all under the Express opco magically create additional capacity?

 

[UpstateNYUPSer(Ret)]

That massive spike is not going to go down to previous volume levels. Covid-19 has only strengthened e-commerce demand. Brick and mortar retail is all but dead. FedEx will have to change their long term plan to adjust. Separating the opcos is just too inefficient and they know it.

I wouldn't say B&M retail is all but dead but it will certainly not go back to pre-Covid levels.

 

[UpstateNYUPSer(Ret)]

So not true about the brick and mortar. Companies are starting to charge people for returns. I am hearing more and more people hoping the stores open.

The stores will reopen but they will not be nearly as busy as they were pre-Covid.

 

[UpstateNYUPSer(Ret)]

I think if the companies keep charging for returns. Like most of them are starting to do. Then yes people will go back to the stores.

Depends upon the price point on the returns.

 

[UpstateNYUPSer(Ret)]

Ground has run its course

Ground is only getting started.

 

[UpstateNYUPSer(Ret)]

Ground out grew itself

Nope.

 

[bbsam]

Read an article that said Microsoft and Fedex are teaming up to compete with Amazon.

 

[bbsam]

FedEx Teams Up With Microsoft to Fight Amazon. That’s Good for FedEx Stock.

 

[MAKAVELI]

By that logic, if they thought the Express network could handle Ground volume they would have done it by now.

That's why at some point they will have to combine the two. Neither could handle each other's volume on their own.

 

[bbsam]

That's why at some point they will have to combine the two. Neither could handle each other's volume on their own.

That still makes no sense.