Whodunnit: Express or Ground?

[MAKAVELI]

Just how is ups changing the way they do business? As far as I can see FedEx is only company getting special exclusions from many legislative bills intended on leveling the playing field and force other businesses to pay contractors as employees. Seems to me this could be an antitrust issue later down the road. At some point between legal costs and as you say" tweaking the model" it may not be very cost effective to keep it.

UPS buys back business all the time. They regularly fill trucks with freight that they lose money on (like LL BEAN). Peruse the UPS forums and it's clear that UPS isn't the company it was 30 years ago. You don't think Express is the only lunch we've been eating, do you? Our transit times are as fast and many times faster to market. Yes. I'm certain UPS alters their business to compete. All of the above is before we even begin to discuss Grounds ability to undercut cost and still make a healthy profit. So where does that leave the UPS brass when dealing with customers? Insisti g that their drivers don't have tattoos and piercings?

And you think FedEx doesn't do the same? Every business has competition and the things you mentioned are not exclusive to UPS. As for transit times, well you don't have the volume they do. I'm sure that factors into it.

 

[bbsam]

And you think FedEx doesn't do the same? Every business has competition and the things you mentioned are not exclusive to UPS. As for transit times, well you don't have the volume they do. I'm sure that factors into it.

No. Ground doesn't do it. If we don't make money on the freight, we don't sign a contract with the company. And if the company doesn't ship the amount they agreed to ship, they lose the discount. And the transit times is because Ground can move more trailers by rail without stepping on the toes of union line haul drivers.

 

[MAKAVELI]

And you think FedEx doesn't do the same? Every business has competition and the things you mentioned are not exclusive to UPS. As for transit times, well you don't have the volume they do. I'm sure that factors into it.

No. Ground doesn't do it. If we don't make money on the freight, we don't sign a contract with the company. And if the company doesn't ship the amount they agreed to ship, they lose the discount. And the transit times is because Ground can move more trailers by rail without stepping on the toes of union line haul drivers.

FedEx does do it. At least at express. Got to fill those planes.And we shall see about those transit times if you ever come close to UPS volume.

 

[bbsam]

Well, we had less volume 10 years ago and we grew and our transit times decreased. I think we would keep the same formula. Bigger hubs, more doubles/triples, rail cars...you know keep expanding.

 

[Code 82 Approved]

Just for the sake of argument, my route is now 2 straight trucks and 3 step vans. All in 5 years. No new construction to send it that out of whack.

 

['Lord Brown's bidding']

And the transit times is because Ground can move more trailers by rail without stepping on the toes of union line haul drivers.

Actually, the transit times are due to Ground's reliance on contractors rather than employees OR rail. A road team can beat the transit time of a trailer riding via train. Couple this with FedEx being able to use contractors paid at a cheaper wage than a UPS road driver, and you have Ground transit times handedly beating UPS' times.

UPS cannot shift more volume off the rails because the union will neither allow more contractors nor a lower wage for road team drivers, but they really, really want to.

 

['Lord Brown's bidding']

And I know Ground has recently begun shipping via rail (probably because of the shortage of over-the-road truckers due to sub-standard wages), but for years they didnt use rail, whereas UPS is the U.S. railroads' largest single customer. As a railfan, my disdain for FedEx isn't just because I work for the opposition....

 

[bbsam]

Ah. Thanks for the clarification. Your disdain aside, the expansion continues.

 

[MrFedEx]

And I know Ground has recently begun shipping via rail (probably because of the shortage of over-the-road truckers due to sub-standard wages), but for years they didnt use rail, whereas UPS is the U.S. railroads' largest single customer. As a railfan, my disdain for FedEx isn't just because I work for the opposition....

If Ground ships with the railroads, their trailers are much less likely to be upside down in a ditch somewhere. There is a huge shortage of OTR drivers, primarily due to low wages and poor working conditions as you mentioned, and you will be seeing more Ground on the rails.

 

[Cactus]

And I know Ground has recently begun shipping via rail (probably because of the shortage of over-the-road truckers due to sub-standard wages), but for years they didnt use rail, whereas UPS is the U.S. railroads' largest single customer. As a railfan, my disdain for FedEx isn't just because I work for the opposition....

If Ground ships with the railroads, their trailers are much less likely to be upside down in a ditch somewhere.

Ain't that the truth.

 

[bbsam]

If Ground ships with the railroads, their trailers are much less likely to be upside down in a ditch somewhere. There is a huge shortage of OTR drivers, primarily due to low wages and poor working conditions as you mentioned, and you will be seeing more Ground on the rails.

Shortage of OTR drivers? Are you sure about that?

 

[CJinx]

It's a statement that supports his argument, don't let the facts get in the way! Much like when he was claiming that a certain executive was commuting to and from work regularly on a corporate jet. No facts, just conjecture.

 

[MAKAVELI]

It's a statement that supports his argument, don't let the facts get in the way! Much like when he was claiming that a certain executive was commuting to and from work regularly on a corporate jet. No facts, just conjecture.

Oh dear! Don't you know kool-aid is bad for your health? It's a known carcinogen. Here you go.....Driver Shortage or Pay Shortage?

 

[bbsam]

Oh dear! Don't you know kool-aid is bad for your health? It's a known carcinogen. Here you go.....Driver Shortage or Pay Shortage?

that's an opinion piece that happens to mirror your own opinion.

 

[MrFedEx]

Shortage of OTR drivers? Are you sure about that?

Positive. Biggest issue in the trucking industry right now is finding drivers to fill empty seats, particularly in the OTR segment. This drives more business to rail.

 

[MrFedEx]

It's a statement that supports his argument, don't let the facts get in the way! Much like when he was claiming that a certain executive was commuting to and from work regularly on a corporate jet. No facts, just conjecture.

The MT3 accusation was never proven/disproven. I happen to think he's commuting to Chicago. I'm amazed that someone who works for Ground is so clueless about the OTR driver shortage since that directly affects Ground line-haul. Maybe you need to do some research instead of spouting misinformation.

 

[MAKAVELI]

Oh dear! Don't you know kool-aid is bad for your health? It's a known carcinogen. Here you go.....Driver Shortage or Pay Shortage?

that's an opinion piece that happens to mirror your own opinion.

Really? Try using google, its your friend.

 

[MrFedEx]

Really? Try using google, its your friend.

New clean-air tractors are incredibly expensive, freight rates are artificially low, and the younger generation doesn't embrace the crappy OTR lifestyle of living in the truck, being away from home for long periods of time, and being paid by the mile while you sit in LA or NYC traffic making zero money per hour. It's a huge issue. Watch for freight rates to rise as carriers are forced to pay more in an attempt to get drivers.

One would think that an ISP would be knowledgeable about trucking. Guess not.

 

[bbsam]

If there were really a shortage, companies would simply up compensation. As has been pointed d out, it is artificially low. They aren't just going to let profits sit on the sideline.

 

['Lord Brown's bidding']

If there were really a shortage, companies would simply up compensation. As has been pointed d out, it is artificially low. They aren't just going to let profits sit on the sideline.

No, they won't let profits sit on the sideline. In fact, they increase them by sacrificing a little transit time for a cheaper alternative: rail. Hence why now I spot an occasional FedEx trailer on a train (although I usually see a Freight trailer, but have seen some Grounds, too).