That rumor's been going especially since we went public but something has changed that could play into this. FedEx is starting to advertise FedEx Freight so I don't know how UPS is viewing this but I'd think if there's a market need they'll look at filling it, or I'd hope they would. I guess we'll just have to wait and see.
Rumor seems to have gotten stronger lately but i don't know. Anytime I have the opportunity to ask someone that might have some insight I'm told that we have no interest in frieght since there is no money in it. I would think a frieght company would have to be a part of the package if we truly want to consider ourselves a logistics company.
ParttimeJon obviously doesn't know the difference between freight and parcels.
Trust me Jon, if we move "full-time" into freight, it won't have anything to do with you or me. That'll most likely spin off our UPS Logistics company. And need I remind you that our Logistics is very much non-Union.
But I guess whatever the company has to do to stay above FredEx is fine by me, as long as me and all my Union brothers and sisters don't lose our current jobs over it.
Well something has to change. The current box line system certainly is not designed to handle freight and we get more and more over 70's and oversize packages every day. The package cars aren't designed for it either. And you can bet if Fedex is going to start pushing freight we won't be far behind. And Tie is right. If we want to be your "total" shipping company freight has to be part of the package and you would think that would mean world wide. But Tie explain to me why you think there is no money in it. Weight plus distance sounds like a money maker to me.
I do believe that hundred weight is one of our offerings that cut deeply into freight. It has also made freight costs drop. And as a result, there are many companies that are now for sale to buyers that have cash. Many of those are union carriers that are on the brink of closing.
Biggest problem I see with UPS in the current method of doing business is how unresponsive we are to customer needs and requests. Just had a customer switch from FDX to us for overnight. Customer account exec. said he would be by there first thing the next morning. Two days later still no exec. and customer has been filling out close to 1100 ASD's. Just wonder how long it will be before they kiss us goodby and go somewhere else.
The key advantage we have over fedex is the one operation for all services concept. If we could buy a frieght operation and still send out full trailers from point a to point b then we could do so and be very competitive. Does anyone know if Fedex offers the same type of service committments with the frieght part of the business or do they take longer to move frieght?
Example if the ground committment from point a to point b is 3 days for packages does fedex also offer to move the frieght in 3 days.
"And need I remind you that our Logistics is very much non-Union."
That will start to change in another couple of years as IBT will be allowed by UPS to organize some parts of logisitcs. This was agreed to in the most recent contract. This could also open up doors for more opportunity for you feeder drivers but that's more a wait and see deal than anything else. Biggest change I see coming for the feeder drivers is in tightening up the national network will more drivers be needed for sleeper teams and mileage runs? The days of doing a run and sleeping in your own bed every night might be coming to a close but again it's a wait and see. I just hope whatever happens it works so that there are many, many more feeder jobs and this method proves the most economic for the company too. A Win/Win works everytime.
"look i understand the difference. what i meant was feeder jobs may be needed more,fork lift jobs may be needed more and so on and so forth."
Part tim jon , Feeder Drivers point was that you do not understand the difference. Buying a frieght company may mean more opportunity for the frieght company employees but not for upsers since the two systems would stay seperate.
On this one I disagree with you Proups. The transit improvements were the result of us finally getting the R.R. to compete with each other for our business. I just do not see why more sleeper teams (often a feeder mgrs. nightmare) would be needed for this situation. I know of no frt. company that brings top quality equip. and facilities to the table that is also on the market. I easily could be missing something but I have a hard time seeing why our interests would lie here except as seperate operations. JMHO