Why in the world doesn’t UPS take a cue from FEDEX

[badpal]

And tell Amazon to hit the bricks? Deliver your own crap. Perfect timing. Fedex express just announced they did not renew their contract with Amazon. Put Amazon out of business like we should have done years ago. They will drown in their own vomit without UPS and Fedex. There little independent contractors delivering all their crap? Lol.

Did you not hear this week about thier soon to be toothpaste delivering drones. lol

 

[BlackCat]

I guess we'll see when the Q2 numbers are posted.

I think the retro checks are the tea leaves you are looking to read.

 

[BlackCat]

Yesterday, I had 150 and barely had 8 hours.

Screw that.

Orion would never make you that efficient.

 

[Two Tokes]

And tell Amazon to hit the bricks? Deliver your own crap. Perfect timing. Fedex express just announced they did not renew their contract with Amazon. Put Amazon out of business like we should have done years ago. They will drown in their own vomit without UPS and Fedex. There little independent contractors delivering all their crap? Lol.

I agree
We can take back our sure post to make up the volume lost
Amazon is a lost leader for UPS
Amazon has no idea the problems that come from delivering to the end

 

[zubenelgenubi]

I think the retro checks are the tea leaves you are looking to read.

They aren't paying out til Q3. Ideally it won't affect profits too much if the money has been set aside.

 

[Two Tokes]

How do you think that ground gets to Fedex? This is big news as Fedex's air division is much larger than ours. And I mean much larger.

We also do not know what UPS is charging Amazon. Bezos speaks to shipping at every board meeting and how he is working at driving costs down. Plus, as we get more of that resi volume, our actual cost to deliver it has to go down. My route typically has 150ish stops. That is generally an 8.5-9 hour day. I have had a pile of days with 180 stops and done that in a relatively easy 9 hour day. Yesterday, I had 150 and barely had 8 hours. I had several times when I parked and walked off 4 stops. I am also seeing many more resi stops with more than 2 pieces per stop. That also boosts efficiency.

It would be interesting to know how many pieces it takes per resi stop to make it profitable.

edited to add... On my route, I start the day with businesses. Even after going to CIR, I rarely have more than 28 stops done by the end of my 2nd on road hour. My resi neighborhoods are 20-35 stops/hour. Every day, I have at least 1 30 stop hour, sometimes 2.

That is a pretty sweet route

 

[ManInBrown]

Who cares how much money we are making off them? If abney had a brain between his ears he would tell them to hit the friend’n bricks. Their business would be immediately decimated without us delivering their crap. The ex con in the lasership chester the molester van isnt doing 150 stops a day. Take the temporary loss of profit from dropping them, and decimate Amazon.

 

[PASinterference]

That is a pretty sweet route

You should try a rural route then. I haven't run over 65 in months. Our heaviest route takes out 135 or so most days. Small center in the boondocks.

 

[Star B]

Agree, the higher the stop density the better the chance of profiting. It sounds like express is having issues with making money in extended areas, and they can't send those packages through fedex ground. If we're in the area already, we win. Seems like this could prove to be a pretty big flaw in FedEx's business model.

That's the issue.

There's this extended route I run that is busy at 55 stops...300 miles.... 12hourish day. I drive thru about 6 UPS drivers areas and two centers when I'm on area. There are times where I'm wasting 30 minutes to get to one stop and then another 20 to the next.... with that kind of low-density work, there's no surprise why we couldn't make it work.

 

[MAKAVELI]

That's the issue.

There's this extended route I run that is busy at 55 stops...300 miles.... 12hourish day. I drive thru about 6 UPS drivers areas and two centers when I'm on area. There are times where I'm wasting 30 minutes to get to one stop and then another 20 to the next.... with that kind of low-density work, there's no surprise why we couldn't make it work.

That's what FredEx has to deal with when he decided to separate Express and Ground.

 

[Overpaid Union Thug]

How do you think that ground gets to Fedex? This is big news as Fedex's air division is much larger than ours. And I mean much larger.

From the article.....

“Amazon’s contract with FedEx Express only affects air services, which means FedEx will continue to serve as a carrier and last-mile delivery partner.“

and.....

“FedEx added that Amazon was not a huge customer, only accounting for roughly 1.3% of its total revenue in 2018. FedEx stock dropped less than 1% on the news, while Amazon stock did not budge.”

 

[govols019]

How do you think that ground gets to Fedex?

By truck.

 

[watdaflock?]

Since 8 in 10 drivers at this company lack the testicular fortitude to file even after the new contract language made it easier, the status quo will remain.

Is it because UPS is hiring more women drivers, millennials or Generation Z's?

 

[Star B]

From the article.....

“Amazon’s contract with FedEx Express only affects air services, which means FedEx will continue to serve as a carrier and last-mile delivery partner.“

well, the article is wrong.

we are not doing last mile anymore for them. let's put it this way, at my little station, we were ingesting about 50 skids a day of amazon. now we're ingesting 0. tell us how we're still doing 'last mile' and 'carrier' for them?

 

[MAKAVELI]

well, the article is wrong.

we are not doing last mile anymore for them. let's put it this way, at my little station, we were ingesting about 50 skids a day of amazon. now we're ingesting 0. tell us how we're still doing 'last mile' and 'carrier' for them?

Amazon will continue to use Ground.

 

[barnyard]

Screw that.

Orion would never make you that efficient.

Until a month ago, I would have agreed. My route is now looped and loaded so that I deliver almost everything in the order it is loaded. I used to routinely deliver 4-5 sections in reverse, now I might do a half section a day and that will almost always be my last section. For 16 months, I used Orion to reduce my dispatch and it worked perfectly. There were days that 120 stops in the same area was a 9 hour day.

 

[Overpaid Union Thug]

well, the article is wrong.

we are not doing last mile anymore for them. let's put it this way, at my little station, we were ingesting about 50 skids a day of amazon. now we're ingesting 0. tell us how we're still doing 'last mile' and 'carrier' for them?

There are other stations out there. Yours isn’t an indication of what goes on across the rest of the country. Or even your state.

 

[SmithBarney]

I don’t think people are actually reading the article.

FedEx will no longer provide express shipping for Amazon in the US

It says the real FedEx (not Ground) will stop delivering Amazon pkgs. That volume is a drop in the bucket just like our express volume for Amazon. FedEx Ground will continue accepting ground volume from Amazon.

The Revenue was a drop in the bucket, but the volume probably accounted for 25-50% of most semi-rural and rural routes. Remember the real revenue at express is in letters/pak(basically things less than 5lbs), they weigh almost nothing, take up almost no space and still cost a pretty penny to ship. Express was tossed into the Amazon deal to get a majority stake in Ground Volume. Unfortunately the AMZ 2day freight was affecting service across the country

 

[Overpaid Union Thug]

The Revenue was a drop in the bucket, but the volume probably accounted for 25-50% of most semi-rural and rural routes. Remember the real revenue at express is in letters/pak(basically things less than 5lbs), they weigh almost nothing, take up almost no space and still cost a pretty penny to ship. Express was tossed into the Amazon deal to get a majority stake in Ground Volume. Unfortunately the AMZ 2day freight was affecting service across the country

So yeah.....a drop in the bucket nationally.

 

[SmithBarney]

So yeah.....a drop in the bucket nationally.

Revenue vs Volume most people don't comprehend, especially since the $ earned per AMZ package just wasn't worth it,
I'm sure FDX came at them with some new figures that they didn't like.

Yes, but the Rural Drivers that had routes balloon nearly 150-200% are thankful.
that being said, some rural routes have sustained volume from a variety of new shippers, so sales has been busy.