UPS takes usps deal

[FedupExpress]

UPS to become US Postal Service’s primary air cargo provider

UPS will become the primary air cargo provider for the United States Postal Service (USPS) after signing an expansive new contract, UPS announced Monday. The carrier will move the majority of USPS …

thehill.com

 

[bacha29]

UPS to become US Postal Service’s primary air cargo provider

UPS will become the primary air cargo provider for the United States Postal Service (USPS) after signing an expansive new contract, UPS announced Monday. The carrier will move the majority of USPS …

thehill.com

It's only 4% of company revenues but what really matters is that it's business Fat Freddy won't be able to get back for at least the next 5 and half years.
In the meantime Dano's mom is down in the cellar sweeping the rugs and filling up the freezer with hot pockets anxiously awaiting her boy's return home and this time for good.

 

[cosis]

I see a lot of empty planes in the future

 

[bacha29]

I see a lot of empty planes in the future

And perhaps a lot of them cut up for scrap.

 

[zeev]

UPS will expand air freight ,day time mail service will offset the cost of the planes even at low margin. Adding air to the established Ground system is pure profit.

 

[Artee]

I see a lot of empty planes in the future

The future has been here for a while. The planes have not been full for a long time. Mail volume has been way down.

 

[Artee]

And perhaps a lot of them cut up for scrap.

Nope.....This will be freeing up the 777's so they can head to Europe and start picking up the new Tri-Color freight and be bringing it back to the East and West coast and back to Europe again.

 

[Artee]

UPS will expand air freight ,day time mail service will offset the cost of the planes even at low margin. Adding air to the established Ground system is pure profit.

These are not the same postal contracts from 20 years ago. FDX was getting fat off that money back then along with Evergreen. What happened to Matheson? The postal contracts have not been a good deal for FDX or others for quite sometime. This will put the nail in the coffin for the Memphis day sort.

 

[bbsam]

Looks like the Amazon deal all over again. Low to no profit. Filler to keep pilots flying.

If you’re not interested in keeping the entire pilot workforce, why bother?

 

[bacha29]

Nope.....This will be freeing up the 777's so they can head to Europe and start picking up the new Tri-Color freight and be bringing it back to the East and West coast and back to Europe again.

According to available data the 767's and 777's are their newest planes. They'll likely still fly for awhile. Their older ones will likely be sold or scrapped due to age, cost to operate and reduced freight volume.

 

[One day at a time]

UPS to become US Postal Service’s primary air cargo provider

UPS will become the primary air cargo provider for the United States Postal Service (USPS) after signing an expansive new contract, UPS announced Monday. The carrier will move the majority of USPS …

thehill.com

I guess they might as well. Everyone is used to late air now it’ll be later yet. Good move

 

[FedupExpress]

I guess they might as well. Everyone is used to late air now it’ll be later yet. Good move

At this point they need to remove the money back Gurantee, fedex is a failed company that sells a failed service... Remaining employees are holding on with a death grip because they are afraid to leave momma Fred

 

[Aquaman]

Is there a reason why FedEx couldn’t adjust the operation to find profit in the contract? UPS clearly saw profit in the deal. I think this has everything to do with FedEx wanting out of the airline business.

 

[MAKAVELI]

Is there a reason why FedEx couldn’t adjust the operation to find profit in the contract? UPS clearly saw profit in the deal. I think this has everything to do with FedEx wanting out of the airline business.

Doubt it. Express brings in the most revenue. Combining the two networks, if done right , will make Express more efficient and profitable. UPS knows this and that's why they snagged it up.

 

[Fred's Myth]

Is there a reason why FedEx couldn’t adjust the operation to find profit in the contract? UPS clearly saw profit in the deal. I think this has everything to do with FedEx wanting out of the airline business.

The silver lining of the USPS-FedEx contract was that is utilized plane capacity during off hours, making the contract lucrative. With Express grounding so many planes, and thereby pilots, the margin for the exchange becomes smaller, and expendable.

 

[59 Dano]

The silver lining of the USPS-FedEx contract was that is utilized plane capacity during off hours, making the contract lucrative. With Express grounding so many planes, and thereby pilots, the margin for the exchange becomes smaller, and expendable.

That's not quite it. USPS volume has been dropping significantly over the years and has reached a point where it's not worth it at the rates the postal service wants to pay.

 

[zeev]

Post office business was free money planes are not being used during the day and FedEx doesn’t have to deliver it. Like Amazon which was also just plane capacity was very efficient to pick up compared to auto parts shipper where FedEx employees worked in processing of freight and it could take hours to make a pickup.

 

[fedx]

That's not quite it. USPS volume has been dropping significantly over the years and has reached a point where it's not worth it at the rates the postal service wants to pay.

FedEx claims they were barely making any money from USPS. So does this mean we'll be getting a pay step this Oct because we got this USPS monkey off our back, or will FedEx use this as an excuse to not give us a pay step? "We lost the USPS contract, so we can't give a pay step again this year."

 

[vantexan]

FedEx claims they were barely making any money from USPS. So does this mean we'll be getting a pay step this Oct because we got this USPS monkey off our back, or will FedEx use this as an excuse to not give us a pay step? "We lost the USPS contract, so we can't give a pay step again this year."

If they were making any money, even if barely, that revenue is now lost. So do they now have a lot of extra money?

 

[fedx]

If they were making any money, even if barely, that revenue is now lost. So do they now have a lot of extra money?

Yeah no pay step this year. This will be their excuse. Even if they gain a bunch of extra money from the reworking of their network, they'll use this USPS deal as the excuse for why we won't get a pay step this Oct. We know how they spin stuff.