Should It Come As A Surprise?

[59 Dano]

A couple of years ago, I heard a couple of I Heart Radio stations as I was traveling between cities. The two stations were playing the same songs, but one was playing the song about 2 minutes faster. So I could listen to a song on the one station and then when it was over, I could flip to that other station and listen to that song all over. But here's where it got kind of weird. The "DJ" on the one station told a "story" and made it sound like it was a personal story. Then when I flipped to the other station, that other "DJ" told the same exact "story" (word for word) as that other DJ, also making it sound like it was personal to him. So I wondered if these I Heart stations just have a computer as the "DJ" and change the voice around for each station. Either that or there were real people in those 2 stations, but they're being fed with a script what to say when they are talking on air.

I’d lean towards 2 DJ’s with the same script. The larger groups are getting pretty good at putting a certain brand of station playing a certain format in multiple cities, often on the same frequency, often with the same (or very similar) name. It’s crazy.

 

[bacha29]

You said once you just lay around and play video games all day while your flunkies do all the hard work. Well, you’ve just described yourself.

It would appear that IWBF believes that relief from the ongoing downward pressure on his margins will come from hauling even more Express boxes for even lower rates. I can't see where there's anything to look forward to doing that.

The simple fact of the matter is that Fat Freddy and Raj have a sufficient number of contractors such as IWBF caught in a rate trap they can't get out of outside of liquidating for pennies on the dollar. What else can they do? The window of maximum opportunity to get out has passed them by and no one knows when or if that opportunity will come around again.

 

[bacha29]

This AM on my street is your typical delivery day. UPS goes up the street. One pass and done on that street. A little while later comes Ground . makes 3 trips up and down the street and two stops at the same house. About 20 minutes later here comes Express stops and makes a delivery at the same house. This nonsense will eventually come to an end. The only question is when and what measures will be undertaken in order to get there.

 

[yadig]

It would cost Express a fortune to take on all the assets and operational costs that are currently borne by contractors should Express try to absorb Ground. And should it go the other way around, where are you going to get the contractors to take on the Express freight when there are barely enough to handle the existing Ground freight?

You won’t need that many bodies! You’ll have one truck going out full instead of two half full. You see how this works? The problem will be can the contractors get the help to move the additional volume. You shut down a lot of ramps and stations at express. They’ll cut flights and truck what they can. They have massive ground terminals everywhere now and they’ll move express into them. It’s not that hard to imagine what’s coming in the near future.

 

[bbsam]

They're making money on it. Some think that they should contract it out to make even more money on it, which makes no sense considering there's no one to contract it out to at this moment.

They only make money off it by screwing the contractor. And even if they still don’t acknowledge it, it’s going to cause them huge problems.

 

[bbsam]

It would appear that IWBF believes that relief from the ongoing downward pressure on his margins will come from hauling even more Express boxes for even lower rates. I can't see where there's anything to look forward to doing that.

The simple fact of the matter is that Fat Freddy and Raj have a sufficient number of contractors such as IWBF caught in a rate trap they can't get out of outside of liquidating for pennies on the dollar. What else can they do? The window of maximum opportunity to get out has passed them by and no one knows when or if that opportunity will come around again.

You couldn’t be more wrong. The window to get out is just around the corner.

 

[fedx]

This AM on my street is your typical delivery day. UPS goes up the street. One pass and done on that street. A little while later comes Ground . makes 3 trips up and down the street and two stops at the same house. About 20 minutes later here comes Express stops and makes a delivery at the same house. This nonsense will eventually come to an end. The only question is when and what measures will be undertaken in order to get there.

May not seem like that big of a deal, but when you multiply it times thousands of cities happening everyday, it adds up to a ton of money being wasted in fuel alone and paying multiple couriers. I think we can expect this to come to an end, especially now that a big investor is influencing the board. The real question I'm wondering is whether FedEx will go with the contractor model for all or go with company owned like UPS?

 

[yadig]

May not seem like that big of a deal, but when you multiply it times thousands of cities happening everyday, it adds up to a ton of money being wasted in fuel alone and paying multiple couriers. I think we can expect this to come to an end, especially now that a big investor is influencing the board. The real question I'm wondering is whether FedEx will go with the contractor model for all or go with company owned like UPS?

Contractor model

 

[Fred's Myth]

I foresee a new market for employment agencies representing the employee, and demanding an adequate compensation package, similar to what a union does, for its clients.

 

[bbsam]

Should be an interesting story in the WSJ in the next couple of days with a very salty contractor absolutely laying it all on the line. Will be interesting to see how much the paper whitewashes it.

 

[bacha29]

You couldn’t be more wrong. The window to get out is just around the corner.

And how can that be? With no guaranteed renewal then the day after the expiration you're just an unrestricted free agent with a yard full of worn out, junkyard value old vans for which alternative uses are very limited.

 

[Mutineer]

a very salty contractor

"Salty" as in old, skinny, grizzled, vituperative, wild-eyed, profane, and with a perpetual BAC?

I thought those old dinosaurs had gone extinct at Ground.

junkyard value old vans for which alternative uses are very limited.

If they can serve as housing for the former contractors, they will be in high demand.

 

[bbsam]

m

"Salty" as in old, skinny, grizzled, vituperative, wild-eyed, profane, and with a perpetual BAC?

I thought those old dinosaurs had gone extinct at Ground.

If they can serve as housing for the former contractors, they will be in high demand.

”Salty” as in a midwestern Russian who happens to be one of the largest contractors in the country who has an axe to grind.

 

[bbsam]

And how can that be? With no guaranteed renewal then the day after the expiration you're just an unrestricted free agent with a yard full of worn out, junkyard value old vans for which alternative uses are very limited.

Pandemic + US government tax code = convenient off ramp.

Have you seen the price of new trucks these days? Have you heard contractors railing about the cheap contracts? Those “junkyard value old vans” are a gold mine.

You’re still in the 1990s mindset. The market has changed. TTKU.

 

[bbsam]

And how can that be? With no guaranteed renewal then the day after the expiration you're just an unrestricted free agent with a yard full of worn out, junkyard value old vans for which alternative uses are very limited.

Do you know what happens as an unrestricted free agent?

They go looking for a suitable replacement.

Do you know what happens when they can’t even give the business away?

The market for contractors has changed. TTKU

 

[Cactus]

This AM on my street is your typical delivery day. UPS goes up the street. One pass and done on that street. A little while later comes Ground . makes 3 trips up and down the street and two stops at the same house. About 20 minutes later here comes Express stops and makes a delivery at the same house. This nonsense will eventually come to an end. The only question is when and what measures will be undertaken in order to get there.

May not seem like that big of a deal, but when you multiply it times thousands of cities happening everyday, it adds up to a ton of money being wasted in fuel alone and paying multiple couriers. I think we can expect this to come to an end, especially now that a big investor is influencing the board. The real question I'm wondering is whether FedEx will go with the contractor model for all or go with company owned like UPS?

The whole root of the problem they’ve got themselves into is Smith’s long standing and deep seated hatred of unions since he is probably one of the biggest control freaks alive. Fat Freddy has gone about keeping the union out with the RLA and contractors and the cost of it all is obscene and it looks like it’s all coming unraveled quickly nowadays. The clover field is drying up and no matter what these idiots in Memphis decide to about it, it’s gonna be a show one way or another.

 

[zeev]

The whole root of the problem they’ve got themselves into is Smith’s long standing and deep seated hatred of unions since he is probably one of the biggest control freaks alive. Fat Freddy has gone about keeping the union out with the RLA and contractors and the cost of it all is obscene and it looks like it’s all coming unraveled quickly nowadays. The clover field is drying up and no matter what these idiots in Memphis decide to about it, it’s gonna be a show one way or another.

 

[zeev]

The whole root of the problem they’ve got themselves into is Smith’s long standing and deep seated hatred of unions since he is probably one of the biggest control freaks alive. Fat Freddy has gone about keeping the union out with the RLA and contractors and the cost of it all is obscene and it looks like it’s all coming unraveled quickly nowadays. The clover field is drying up and no matter what these idiots in Memphis decide to about it, it’s gonna be a show one way or another.

Right on Freddy’s massive hatred of unions will be his downfall, starving both Express and Ground has destroyed service and profitability at the same time

 

[59 Dano]

Contractor model

Won't happen.

 

[bacha29]

Pandemic + US government tax code = convenient off ramp.

Have you seen the price of new trucks these days? Have you heard contractors railing about the cheap contracts? Those “junkyard value old vans” are a gold mine.

You’re still in the 1990s mindset. The market has changed. TTKU.

They are still the fastest depreciating piece of equipment known to the US economy. Most are smelter bait in 3 years. And recently I was informed that Fats and Raj want nothing older than 2014 in the Ground fleet due to movement toward vehicles with fewer emissions. Sure you might be able to extend the life for awhile by repowering steps but panels and cutaways are too light and sure you could throw new engines and transmissions in those but you still have a $2500 truck no matter how much money you throw at them.

Sure you might be able to unload those old rags onto some starry eyed new contractor who doesn't know what he's getting into for more money that their condition warrants but smart contractors with good eyes on mechanical condition will more often than not only pay "take it off your hands" prices.