Discussion in 'UPS Discussions' started by Obi-Wan, Apr 24, 2013.
FedEx Wins $10.5 Billion Postal Contract as UPS Shut Out - Bloomberg
What I don't understand is how the administration is so pro union until it comes to UPS. They have spent a lot of money to protect union jobs and then our company gets screwed.
The inherent inefficiencies of the USPS clashed with the inherent efficiencies of UPS.
We're probably better off without them.
USPS hasn't used government money in a loooooooong time. They run off their own income. If FedEx beat us price wise, then they'll take it. FedEx doesn't expect to make a profit with their SurePost, they're going to use SurePost as a loss leader to expand their hubs and centers so they can capture more volume from us.
It's all about costs. I imagine FedEx bid lower than ups. That simple really.
FedEx counts on that account to keep their business going...they make sure they are the lowest bidder. If they didn't have that 10 billion coming in they could be in financial straights...especially considering they have 1/2 full planes from declining air volume.
Oddly enough UPS's profit maker and FedEx's profit makers are polar opposites. Ours is air. We charge an arm and a leg for it, FedEx doesn't. FedEx's is ground, they charge a bit more than us on average (over here anyways) and we're in the middle between USPS and FedEx. We need the volume to make ground a little profitable. Our air is pure profit just about.
I hate surepost!!! Especially when I order something and it gets delivered that way.. Such a pain..such a pain..
I am cautious of contracts with USPS due to the damage the USPS caused Emery Worldwide with contractual non-payment.
Judge Grants Emery Worldwide Airlines Summary Judgement In Postal Lawsuit
The USPS took a rather large bailout just last year. Or maybe it was the year before. Either way they had to pull their radio and tv ads that bragged about how they never used a "cent of tax payer money."
Where do you get your information from? When an oil company like Exxon gets to deduct the costs to drill oil wells people call that tax loopholes for large oil. Yet the USPS has thousands of buildings and they pay $0.00 in property tax. UPS we pay millions in property taxes. USPS for their fleet of vehicles pays $0.00 in excise tax on vehicles. UPS pays millions each year. When private companies needs to borrow money they have to pay based upon their own credit. USPS? They get to borrow with the full faith and credit of the US govt. I could go on, and on and on. I don't see how this alone doesn't show their are huge advantages the USPS has.
Also, UPS service is Surepost, FDX has a simlar (although inferior) service called SMARTPOST. FDX uses different hub and fdr network for Smartpost then they do for FDX Ground. (which is also different then FDX Air) Although there are some buildings that are used by both.
yeah,, im sure ups high ups and corporate let a profit generating account go,, us hourly s know how generous they are with there money...... stop spamming
The "bailout" you speak of was not a bailout at all. You may or may not be aware that Congress currently has the Postal Service pre-funding their pension fund to cover the next 75 yrs, $16 billion, I believe, every year. It is this, more than any other reaaon, for why the USPS is currently in dire financial straits. Last year's "bailout" was Congress letting the Post Office defer $11 billion of that year's payment, basically allowing the post official to keep it's own money.
The Post Office does not get any direct public funding; the tax exceptions you speak of isn't public funding, it is just another example of the Post Office keeping more of the money it has, although I do understand where you are coming from.
I wonder if the threat of an impending strike had any play on this?
That is still a bailout.
LOL I was just thinking along the same lines when I got to your post. If it wasn't for USPS, Fedex wouldn't have anything to do.
Separate names with a comma.