FDX: any news on the USPS contract renewal
 

I haven't heard nary a rumor. Anyone else?

I suspect some bad news is coming in the November reorg.

Can't possibly spill this info early. Timing is everything.

I don't see an annoucement until early Spring. It is effective Sept. 1, 2013. The USPS needs to give the New company time to get up to speed. If a New company does get the Contract. I think UPS is just in the competition to lower the yield for FDX. UPS will not win, they don't have the Lift to do the contract. Not even close. And no airplanes showing up. It takes at least a year to get ramped up if it was UPS. They don't have the Lift.

With their ground network I imagine that they don't need too much lift.

+1

If UPS really wants the business, they will make it work.

The billion dollar question is, do they really want the business?

There are hundreds of trucks on the road everyday hauling USPS stuff from city to city. They are mostly independent contractors or subsidiaries of larger trucking companies. The USPS contract with FedEx is for city to city air delivery. What we haul for them can't go by ground. Now, if they change their business model those baby chickens, ducks, earthworms, crickets and all the other stuff we haul for them could go by truck. It will get there 3 or 4 days later. Also, I look for the mortality rate to jump way up on a nice July afternoon!

Wishful Thinking there. You can be tap your feet and close your eyes as the Dorothy did in the Wizard of Oz. Good Luck.

The USPS fills 30 DC-10's a DAY! And some mail is fast delivery to the west coast. UPS does not and will not ever have the capacity to do the Contract. Airplanes or Trucks. Facts. Not as of the near Future.

It is all about lowering the Profit margin FDX receives off the Contract.
UPS will not be Winning.

It is indeed hard to believe that anything that's now going by aircraft is just some sort of mistake- that Fred hasn't realized in ten years they could have used trucks instead.

Same for all the Express/Ground changeover. If packages don't need to go by express - how many of them were already going by truck in the Express system? We shall see...

And how much more expensive is it to send on an airplane that is going there anyways.

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.