Understand and I refer you to my above statements. Take a look at the predictions on cargo demand growth expectations and pair that with reduced capacity. Let Amazon haul the low margin garbage. Let FedEx haul the higher revenue garbage. Plenty of room for others in the cargo market as we order everything from our couches now.

Remember when FedEx is bidding/negotiating a contract they are not only offering to haul the stuff they are offering many other ancillary benefits.

 

I admit I don’t know much of the nuance. I’m just trying to learn. I’m sure for a while there is plenty of room in cargo for everyone....for now. I just imagine that a trillion dollar company that has openly said it wants to get into logistics, could easily have more airplanes than FedEx in 10-15 years. A lot more.

 

You keep thinking that!! If you believe Amazon is not out to get us both, then you are in la la land. For now, Amazon is growing to handle their own volume. That will not last long. Jeff always wants more. This is not about Amazon handling their own volume, it is about Amazon expanding beyond, which will happen sooner rather than later. You can think Jeff is no threat, for now, but Purple and Brown both have to fully prepare for Amazon coming for us.

Amazon moving their volume from A to B, court customers “hey, we will move your stuff from A to B at 50% cost compared to Fedex and UPS”. That way they cover their own costs to move their own stuff. It’s not rocket science. It will happen, in the not to distant future.

The future for the 30/early 40 year olds coming to Fedex/UPS is by all means not clear at all, murky at best. If you have 15 years or less left until retirement, you should be OK retirement wise. Those hoping to have a 30+ year career at Fedex/UPS, I most certainly wouldn’t take that check to bank to cash it. 10-15 years left? Absolutely, Amazon won’t be able to build up a 300+ airplane operation in a short period of time.

 

I feel that if Amazon became a peer to FedEx and UPS, in addition to everything else they are established in and expanding into, then Antitrust would be a legitimate topic of conversation.

 

You think companies like WalMart, Target, Petco, etc are going to have their freight on Amazon? A direct competitor of their business. They use FedEx, like Microsoft, to fight against Amazon. No way in heck many companies would ever partner with Amazon to kill them selves.

Why do you think Microsoft just partnered with FedEx? You think fighting Amazon has something to do with that. Scratch my back and I scratch yours to fight the gorilla.

From a relative in upper management at FedEx “We have gained numerous long term contracts in the last year from former UPS clients due to their inability to distance themselves from Amazon”.

 

There is zero loyalty in business. It is purely about cost.

 

It’s a legitimate topic now, and combined with Amazon operational practices being part of a WB hull loss, should drive increased scrutiny, if only into how Amazon is playing fast and lose with operational control.

 

I agree with that, and Amazon is to be taken seriously. From what I understand, they are seen as a serious threat and steps are being taken to address that.

That being said, Amazon is very clearly setting themselves up for Anti-Trust litigation and that is already happening in Europe and probably soon in the US.

 

I never claimed there was loyalty. What there is though is a concerted effort to beat back Amazon.

 

Do you think someone with 30 years left at FedEx has little to worry about with regard to Amazon?