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FDX: any news on the USPS contract renewal

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FDX: any news on the USPS contract renewal

Old 10-05-2012, 08:43 AM
  #11  
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Originally Posted by Shaggy1970 View Post
Easy ladies, wasn't trying to start a ****ing war. Fact is UPS ground network can touch every physical address in North America and they have been doing this over 100 years. They will figure out a way of moving anything and everything the USPS has if they want it. So for your sake I hope that you guys are right and I am wrong.

No problem girlfriend, but we are well aware that trucks are cheaper than airplanes. So are buses, but when I was a kid it was a rarity to see an airplane and commonplace to see a greyhound bus. Now it is the opposite.

I am sure there will be changes to the Post Office and FDX relationship. But it wont be because someone else can do it more efficiently.
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Old 10-05-2012, 09:14 AM
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Originally Posted by FDXLAG View Post
No problem girlfriend, but we are well aware that trucks are cheaper than airplanes. So are buses, but when I was a kid it was a rarity to see an airplane and commonplace to see a greyhound bus. Now it is the opposite.

I am sure there will be changes to the Post Office and FDX relationship. But it wont be because someone else can do it more efficiently.
You guys are pretty arrogant regarding this. Many things have changed, and the post master general isn't Fred's best friend this time around. UPS will win a significant share of the USPS volume (~50% me thinks...)
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Old 10-05-2012, 09:40 AM
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I see arrogance is a 2 way street. Best of luck to you.

I really dont know or care that much what happens. Nothing said here will change anything. I cant see how it would be cheaper or more efficient for the post office to split their air contract in half, but what do I know. I only responded here because of the chicken little attitude that somehow after all these years we have figured out it is cheaper to truck something then fly it. That only works if time means nothing and you start from scratch and assume that neither the truck nor the airplane is going there anyways.
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Old 10-05-2012, 11:02 AM
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Originally Posted by Precontact View Post
You guys are pretty arrogant regarding this. Many things have changed, and the post master general isn't Fred's best friend this time around. UPS will win a significant share of the USPS volume (~50% me thinks...)
PreContract, Please explain how UPS can do the Contract? UPS will not take an Airplane out of a Gateway during the day. Because it has to be there that evening to go to the Sort with Next day Volume.

FDX had the extra lift back in the day, and then bought more lift into the system. UPS has been shrinking the Air Side for years. UPS has 300 less pilots than during the Peak of size. And way less Aircraft. Wasn't the MD-11 a stop gap airplane? Where is the LRF they talked about 10 years ago? Still on the Horizon? Is Chris Williams going to dream up a time machine?

UPS does not have the capability for the Contract. Ground Side won't cut it. Unless UPS starts ordering Airplanes, which are all spoken for, good luck.

This is all about lowering the Profit margin for FDX.
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Old 10-05-2012, 11:05 AM
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There are dozens of major cities where FedEx has multiple MD-10s and UPS has nothing. Yet UPS still delivers next day air in those locations.....mmmm, I wonder how they do it?

UPS still is receiving new 767s and its been long rumored that up to 20 757s would be parked. With the reduction in Asia volume freeing up MD-11s and with 57 guys still furloughed, it's wrong to say UPS won't get the contract due to lack of lift or crews.

I also think it's wrong to say that UPS will take the whole contract. It will likely be an amount between what it has now and 50%. Hopefully, this just causes FEdex to slow hiring and not furlough. Make no mistake though, UPS is in growth mode with this contract and the TNT deal.
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Old 10-05-2012, 11:57 AM
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UPS can get whatever airlift they may need. You are right that they don't have the organic lift and they won't be wearing brown uniforms, but they will get the lift. They'll bring back the furloughees and a few more, but the bulk will be to subs like southern, who are glad to take it with the reduction in mil contracts. The IPA will kick and scream, but there will be some SCS loophole to sub.

MBB
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Old 10-05-2012, 11:59 AM
  #17  
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Originally Posted by Precontact View Post
You guys are pretty arrogant regarding this. Many things have changed, and the post master general isn't Fred's best friend this time around. UPS will win a significant share of the USPS volume (~50% me thinks...)
UPS or FDX may get it all, or they may get none, by choice. I think both of our Company's decided long ago to not fly freight unless it makes proper yield. If the USPS thinks the the cost is going down with a competitive bid contract I think they may be in for a rude awakening.
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Old 10-05-2012, 12:20 PM
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None of us at UPS wish any of you ill will but we're just guessing what the next round of postal contracts will look like. The USPS is looking to save lots of money, it will be interesting to see how Fedex and UPS respond...
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Old 10-05-2012, 01:28 PM
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Originally Posted by L'il J.Seinfeld View Post
Make no mistake though, UPS is in growth mode with this contract and the TNT deal.

I don't know what your smokin but......are you kiddin me! Growth mode? Tell that to the 57 guys still on the street (I was one of them). They have been out almost two and a half years. Growth MODE! You live in a fantasy world.

Your airplanes are full, UPS is great at managing the system. You really don't comprehend how big the operation is at FedEx just on the air side. They fly the planes around the clock. I digress...

GROWTH MODE?!!?
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Old 10-05-2012, 01:57 PM
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Originally Posted by McBoeingBus View Post
UPS can get whatever airlift they may need. You are right that they don't have the organic lift and they won't be wearing brown uniforms, but they will get the lift. They'll bring back the furloughees and a few more, but the bulk will be to subs like southern, who are glad to take it with the reduction in mil contracts. The IPA will kick and scream, but there will be some SCS loophole to sub.

MBB
You're probably right in that UPS can go out and subcontract a good deal of any USPS freight that they manage to get in this next go-round. However, that also means that UPS must vouch for the reliability of the contract freighters. Are they willing to do that? What would happen if time after time freight doesn't make delivery? How would UPS handle that, if they themselves don't have the lift to deliver on their portion of the USPS contract? Just some disjointed thoughts of someone who is finally on the sidelines and enjoying the view.

JJ
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