FDX/UPS - Timing is Everything!
11-29-2015, 04:52 PM
#92
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Posts: 3,191
Who woulda thunk it...
Every year Flight Operations adjusts for the ever increasing demands on our system during the very busy Peak Season.
Estimates for this Holiday Season predict our Express volume will spike by over 10% from December 2014 over December 2015.
Thank you for moving the freight safely and efficiently as we head into Cyber Monday and officially kick-off the busy Express portion of this Holiday Season.
Every year Flight Operations adjusts for the ever increasing demands on our system during the very busy Peak Season.
Estimates for this Holiday Season predict our Express volume will spike by over 10% from December 2014 over December 2015.
Thank you for moving the freight safely and efficiently as we head into Cyber Monday and officially kick-off the busy Express portion of this Holiday Season.
12-02-2015, 12:12 AM
#93
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Joined APC: Sep 2006
Position: I never did mind the little things.......
Posts: 260
You are correct Sir.
Originally Posted by Commando
I assure you, the IPA in not in envy. UPS owes the IPA $80,000 to $100,000 grand in back pay. Not some lame $35K. And we surely are not envious of the Pay Rates which are 10% low.
Now we are wishing for your DHeading Policy. But the idiot who wrote this article has no clue.
Now we are wishing for your DHeading Policy. But the idiot who wrote this article has no clue.
12-02-2015, 12:26 AM
#94
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Joined APC: Sep 2006
Position: I never did mind the little things.......
Posts: 260
Nice Comments D-Nozzle
Originally Posted by Sideshow Bob
We shall see.
Let's face it...unless you use bogus pro-administration inflation data, you took an effective pay cut as your stock price/executive compensation skyrocketed. Your scope clause is a train wreck, right as the only guy who really wanted as much of your volume on purple tails is headed for the door.
You were terrified of another red letter, and given the spinal deficit over there, it was clearly for the best. Fred would have destroyed you guys, so all things considered, you did as best you could.
Sarcasm aside, we shall see.
Let's face it...unless you use bogus pro-administration inflation data, you took an effective pay cut as your stock price/executive compensation skyrocketed. Your scope clause is a train wreck, right as the only guy who really wanted as much of your volume on purple tails is headed for the door.
You were terrified of another red letter, and given the spinal deficit over there, it was clearly for the best. Fred would have destroyed you guys, so all things considered, you did as best you could.
Sarcasm aside, we shall see.
I actually was initially agreeing with you on some points but then you showed what a pompous jerk you really are.
You deserve everything that is coming to my friend, and then some. Good luck.
12-03-2015, 12:57 PM
#96
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Joined APC: Oct 2006
Position: MD11 CPT
Posts: 1,077
Originally Posted by Chainsaw
Bob, right now the only thing you can see is the inside of your own colon.
I actually was initially agreeing with you on some points but then you showed what a pompous jerk you really are.
You deserve everything that is coming to my friend, and then some. Good luck.
I actually was initially agreeing with you on some points but then you showed what a pompous jerk you really are.
You deserve everything that is coming to my friend, and then some. Good luck.
Try decaf sport, you're a bit over-wrought.
12-06-2015, 07:48 AM
#97
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Joined APC: Feb 2013
Posts: 1,339
Originally Posted by flyphisher
Honestly Albeif? I wouldn't be too proud. In the litany of FedEx contributions, "we have put dues dollars to work......", not listed was the IPA shouldering the fight for 117. The IPA could have used FedEx/ALPA support in the law suit the IPA is now shouldering alone. Fred/ALPA did not want to be part of that fight. And so it was spoken........and of course came to pass.
I think the main difference...the rub if you will...is that at the IPA, we stand together and take on the 900 pound gorilla as best we can. That would be a litany of bullet statements taking pages to include death threats to union officials in getting the IPA started. That was just the beginning. The FedEx pilot group as a whole, by contrast, continually takes what Fred ordains. And while we were hoping that the FedEx pilot group would come together and finally wake up that times are changing, they didn't. And signed that more or less concessionary contract. Honestly, I do not view the FedEx pilot group as a unified group willing to stand up for themselves.
And the further, "rub", is that all the while, the FedEx pilot group might as well be wearing double breasted blazers. Most will get the inference I refer to; believing the elite has been defined. As reality passes them by.
True story:
In OAK probably 2 years ago. UPS calls for taxi and receives taxi clearance. Approaching the shared throat of the ramp, FedEx calls for taxi. Ground says, "FedEx, follow UPS taxi to runway........."
FedEx response, "FedEx will NEVER follow UPS. Taxi to runway......give way to UPS........." Stated with the combination of superiority, disdain, and as dismissive as can be. Insert the fairy tale evil witch of your choice to capture the tone.
The now completely flummoxed ground controller, "uh...yes...uh.....FedEx cleared to taxi to runway........UPS......give way to FedEx". And FedEx....unbelievably.......goes first to the runway. And UPS follows. I was the captain on the UPS flight involved, and professionally asked for the FedEx callsign. Noted the date, time and location, and contacted our professional standards to deal with it. And yet, somehow, you get the impression that the FedEx crew (probably the captain), smugly smiled at his coup. Totally oblivious of the continued arrogance displayed.
This goes further to the root of the problem. Coattails of overwhelming past benevolence does not insure that today is like the 80's and 90's. This contract was a milestone in the FedEx group actually standing together and saying NO to the whims of Fred. And the bar titched just that little bit unperceptively lower. The chance......has come and gone. And peak is around the corner.
The NURP issue was mentioned a few times. I think, again, the difference is that we at least stand together and fight for what against that abomination. The NURP dysfunction is a deeply held (whacky) concept held by the company. It's goes to the core of their (whacky) belief that they must fight with their labor. That they need some sort of tool that the rest of the world scratches their head on saying, "What??? I've never heard of such a system....is that even legal in a closed shop union??" And that's UPS. Whacky.
It doesn't mean we win....but we do continue to fight. We don't just reply, "how high?"
Being unified doesn't insure a win at every battle. But the unified battle must be fought again and again. Every day is another day of contract negotiations at UPS. Do the FedEx pilots even have a dim glimmer of understanding at the depth of meaning in that statement? What that really encompasses? It's a big reality here at UPS.......daily. "No Waivers, No Favors". A mantra repeated and practiced over and over.
You would be wrong to infer that UPS pilots hate coming to work. We don't. No different than any other airline in the proper professional work attitude while on the job. And would never entertain the notion of, "We will NEVER follow........." on ATC. I wonder what that FedEx captain's professional work attitude was that night.
I think the main difference...the rub if you will...is that at the IPA, we stand together and take on the 900 pound gorilla as best we can. That would be a litany of bullet statements taking pages to include death threats to union officials in getting the IPA started. That was just the beginning. The FedEx pilot group as a whole, by contrast, continually takes what Fred ordains. And while we were hoping that the FedEx pilot group would come together and finally wake up that times are changing, they didn't. And signed that more or less concessionary contract. Honestly, I do not view the FedEx pilot group as a unified group willing to stand up for themselves.
And the further, "rub", is that all the while, the FedEx pilot group might as well be wearing double breasted blazers. Most will get the inference I refer to; believing the elite has been defined. As reality passes them by.
True story:
In OAK probably 2 years ago. UPS calls for taxi and receives taxi clearance. Approaching the shared throat of the ramp, FedEx calls for taxi. Ground says, "FedEx, follow UPS taxi to runway........."
FedEx response, "FedEx will NEVER follow UPS. Taxi to runway......give way to UPS........." Stated with the combination of superiority, disdain, and as dismissive as can be. Insert the fairy tale evil witch of your choice to capture the tone.
The now completely flummoxed ground controller, "uh...yes...uh.....FedEx cleared to taxi to runway........UPS......give way to FedEx". And FedEx....unbelievably.......goes first to the runway. And UPS follows. I was the captain on the UPS flight involved, and professionally asked for the FedEx callsign. Noted the date, time and location, and contacted our professional standards to deal with it. And yet, somehow, you get the impression that the FedEx crew (probably the captain), smugly smiled at his coup. Totally oblivious of the continued arrogance displayed.
This goes further to the root of the problem. Coattails of overwhelming past benevolence does not insure that today is like the 80's and 90's. This contract was a milestone in the FedEx group actually standing together and saying NO to the whims of Fred. And the bar titched just that little bit unperceptively lower. The chance......has come and gone. And peak is around the corner.
The NURP issue was mentioned a few times. I think, again, the difference is that we at least stand together and fight for what against that abomination. The NURP dysfunction is a deeply held (whacky) concept held by the company. It's goes to the core of their (whacky) belief that they must fight with their labor. That they need some sort of tool that the rest of the world scratches their head on saying, "What??? I've never heard of such a system....is that even legal in a closed shop union??" And that's UPS. Whacky.
It doesn't mean we win....but we do continue to fight. We don't just reply, "how high?"
Being unified doesn't insure a win at every battle. But the unified battle must be fought again and again. Every day is another day of contract negotiations at UPS. Do the FedEx pilots even have a dim glimmer of understanding at the depth of meaning in that statement? What that really encompasses? It's a big reality here at UPS.......daily. "No Waivers, No Favors". A mantra repeated and practiced over and over.
You would be wrong to infer that UPS pilots hate coming to work. We don't. No different than any other airline in the proper professional work attitude while on the job. And would never entertain the notion of, "We will NEVER follow........." on ATC. I wonder what that FedEx captain's professional work attitude was that night.
12-12-2015, 02:36 AM
#98
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Joined APC: Jul 2007
Position: Gear Monkey
Posts: 3,191
Holiday disaster looms as UPS, FedEx overloaded after online shopping soars
An unexpected surge in online purchases is putting pressure on UPS and FedEx to get packages out on time this holiday season, and that could result in extra costs for retailers.
Retailers like Target broke online-sales records on Thanksgiving Day and the following Monday this year after luring shoppers with discounts.
Broadly, online sales from the long weekend totaled $11 billion this year, according to Adobe Digital Index.
But the rush is translating to delays in shipping that could mean packages don't make it to consumers on time and retailers have to refund orders or offer other compensation like they did in 2013.
An executive at one fulfillment company — which picks and packages customer orders for retailers — told Business Insider that packages in New Jersey and California are sitting in trucks outside FedEx and UPS hubs, waiting several days to be unloaded and processed.
The person, who asked not to be identified, explained that shoppers tracking the packages will only see that a label was created but not that it was picked up by UPS or FedEx.
That won't happen until the package is unloaded from the trucks at the distribution facilities.
The fulfillment executive told Business Insider on Thursday that one trailer has been waiting to be unloaded since last Saturday, though most are more like two days behind schedule.
The executive's claims are consistent with data from ShipMatrix, a software company that tracks package deliveries, and UPS acknowledged some logjams.
UPS and FedEx are experiencing delays this year — with on-time delivery rates for UPS ground packages falling to 91% last week, down from 97% for the same period last year, and FedEx rates falling to 95%, from 97% last year, ShipMatrix told Business Insider.
The Wall Street Journal reported the ShipMatrix figures on UPS earlier.
Similar problems in 2013 left Walmart offering affected customers gift cards of up to $25, and Kohl's offered customers refunds on delayed packages. Those delays were in part caused by bad weather. We reached out to Walmart and Kohl's to see if they're hearing about delays and will update this post if we hear back.
"It’s surprising for UPS, given that for two holiday seasons they really haven’t gotten it right," Edward Jones analyst Logan Purk told Business Insider.
"This year they started in January or February to plan for this holiday season, so we thought it would come together this season, but it seems like it’s not."
A UPS spokesman said that the company is addressing heavy traffic and that the "vast majority" of customers have received their packages on time.
"UPS did experience some high-impact areas driven by volume that came to some of our sites at levels greater than the original peak plan for those locations," spokesman Steve Gaut told Business Insider.
The company manages the surge by sending teams of personnel to "high-impact locations to manage the workload."
"We have processed the exceptional volume at those locations," he said, and the network is now running according to plan and "customers can expect to receive their shipments in line with the service-level commitment.
FedEx said it is seeing "a record number of holiday shipments – fueled largely by the steady rise of e-commerce – flowing through the FedEx global networks."
"Our dedicated team members around the world are working hard to deliver the holidays," a FedEx spokeswoman said.
"Our networks are performing as designed and we are working hard to absorb the extra volumes.
An unexpected surge in online purchases is putting pressure on UPS and FedEx to get packages out on time this holiday season, and that could result in extra costs for retailers.
Retailers like Target broke online-sales records on Thanksgiving Day and the following Monday this year after luring shoppers with discounts.
Broadly, online sales from the long weekend totaled $11 billion this year, according to Adobe Digital Index.
But the rush is translating to delays in shipping that could mean packages don't make it to consumers on time and retailers have to refund orders or offer other compensation like they did in 2013.
An executive at one fulfillment company — which picks and packages customer orders for retailers — told Business Insider that packages in New Jersey and California are sitting in trucks outside FedEx and UPS hubs, waiting several days to be unloaded and processed.
The person, who asked not to be identified, explained that shoppers tracking the packages will only see that a label was created but not that it was picked up by UPS or FedEx.
That won't happen until the package is unloaded from the trucks at the distribution facilities.
The fulfillment executive told Business Insider on Thursday that one trailer has been waiting to be unloaded since last Saturday, though most are more like two days behind schedule.
The executive's claims are consistent with data from ShipMatrix, a software company that tracks package deliveries, and UPS acknowledged some logjams.
UPS and FedEx are experiencing delays this year — with on-time delivery rates for UPS ground packages falling to 91% last week, down from 97% for the same period last year, and FedEx rates falling to 95%, from 97% last year, ShipMatrix told Business Insider.
The Wall Street Journal reported the ShipMatrix figures on UPS earlier.
Similar problems in 2013 left Walmart offering affected customers gift cards of up to $25, and Kohl's offered customers refunds on delayed packages. Those delays were in part caused by bad weather. We reached out to Walmart and Kohl's to see if they're hearing about delays and will update this post if we hear back.
"It’s surprising for UPS, given that for two holiday seasons they really haven’t gotten it right," Edward Jones analyst Logan Purk told Business Insider.
"This year they started in January or February to plan for this holiday season, so we thought it would come together this season, but it seems like it’s not."
A UPS spokesman said that the company is addressing heavy traffic and that the "vast majority" of customers have received their packages on time.
"UPS did experience some high-impact areas driven by volume that came to some of our sites at levels greater than the original peak plan for those locations," spokesman Steve Gaut told Business Insider.
The company manages the surge by sending teams of personnel to "high-impact locations to manage the workload."
"We have processed the exceptional volume at those locations," he said, and the network is now running according to plan and "customers can expect to receive their shipments in line with the service-level commitment.
FedEx said it is seeing "a record number of holiday shipments – fueled largely by the steady rise of e-commerce – flowing through the FedEx global networks."
"Our dedicated team members around the world are working hard to deliver the holidays," a FedEx spokeswoman said.
"Our networks are performing as designed and we are working hard to absorb the extra volumes.
12-16-2015, 05:06 AM
#100
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Joined APC: Jul 2007
Position: Gear Monkey
Posts: 3,191
Why Has the Peak Holiday Season Been a Problem for FedEx?
Huge volumes
Holiday season volumes tend to be typically higher than volumes the rest of the year.
Due to the Thanksgiving, Christmas, and New Year holidays, late November and December have been the months with the largest volumes for the US express package business.
FedEx (FDX) expects to deliver 317 million packages, a year-over-year growth of 12.4%, between Black Friday and Christmas Eve.
Rival UPS expects to deliver ~630 million shipments, a 10% year-over-year growth, between Black Friday and New Year’s Eve.
UPS dominates the US courier industry, followed by FedEx. Smaller rivals include Air T (AIRT) and Air Transport (ATSG).
Other major logistics providers include Expeditors International (EXPD) and Con-Way Freight (CNW).
FedEx forms the largest holding of 12% in the iShares Transportation Average ETF (IYT).
Too much or too little?
In 2013, express delivery companies were caught by surprise with the sudden surge in volume coupled with bad winter weather.
As a result, FedEx and UPS ended up missing a lot of deliveries.
Huge volume should actually mean good news for these courier companies.
However, this opportunity comes at a cost.
High volume for only three months of the year means that companies cannot invest billions of dollars in adding capacity that would be underutilized for the rest of the year.
In 2014, UPS ended up making a similar mistake by adding a lot of capacity that could not be utilized later, damaging its full-year performance.
Similarly, FedEx’s heavy investments this year have subdued its profitability.
On the other hand, not adding any capacity could mean missing the holiday season opportunity.
FDX prepared for strong growth
However, FedEx has been prepared to take advantage of this surge in demand.
Some of the steps taken by the company are:
Tight capacity management:
Cutting dedicated flights and instead using passenger flights for delivery, which is a slower but cheaper option.
The company works with customers to even out promotions throughout December, instead of just during Christmas week
Cap on package volumes:
FedEx will not accept more packages than it can deliver.
For 2016, FedEx plans to invest heavily ($1.6 billion capex) in its fastest-growing segment, FedEx Ground.
This puts it in a better position to take advantage of the peak season.
Despite missing analyst estimates, its growth has been spectacular in the holiday season.
FedEx’s 2Q15 earnings grew by ~36% while its 3Q15 earnings grew by a stunning 63%.
Huge volumes
Holiday season volumes tend to be typically higher than volumes the rest of the year.
Due to the Thanksgiving, Christmas, and New Year holidays, late November and December have been the months with the largest volumes for the US express package business.
FedEx (FDX) expects to deliver 317 million packages, a year-over-year growth of 12.4%, between Black Friday and Christmas Eve.
Rival UPS expects to deliver ~630 million shipments, a 10% year-over-year growth, between Black Friday and New Year’s Eve.
UPS dominates the US courier industry, followed by FedEx. Smaller rivals include Air T (AIRT) and Air Transport (ATSG).
Other major logistics providers include Expeditors International (EXPD) and Con-Way Freight (CNW).
FedEx forms the largest holding of 12% in the iShares Transportation Average ETF (IYT).
Too much or too little?
In 2013, express delivery companies were caught by surprise with the sudden surge in volume coupled with bad winter weather.
As a result, FedEx and UPS ended up missing a lot of deliveries.
Huge volume should actually mean good news for these courier companies.
However, this opportunity comes at a cost.
High volume for only three months of the year means that companies cannot invest billions of dollars in adding capacity that would be underutilized for the rest of the year.
In 2014, UPS ended up making a similar mistake by adding a lot of capacity that could not be utilized later, damaging its full-year performance.
Similarly, FedEx’s heavy investments this year have subdued its profitability.
On the other hand, not adding any capacity could mean missing the holiday season opportunity.
FDX prepared for strong growth
However, FedEx has been prepared to take advantage of this surge in demand.
Some of the steps taken by the company are:
Tight capacity management:
Cutting dedicated flights and instead using passenger flights for delivery, which is a slower but cheaper option.
The company works with customers to even out promotions throughout December, instead of just during Christmas week
Cap on package volumes:
FedEx will not accept more packages than it can deliver.
For 2016, FedEx plans to invest heavily ($1.6 billion capex) in its fastest-growing segment, FedEx Ground.
This puts it in a better position to take advantage of the peak season.
Despite missing analyst estimates, its growth has been spectacular in the holiday season.
FedEx’s 2Q15 earnings grew by ~36% while its 3Q15 earnings grew by a stunning 63%.
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