USPS fate tied to FedEx future
04-20-2020, 09:45 PM
#1
Not a real airline pilot
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Joined APC: Jul 2016
Position: Cargo > Pax
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USPS fate tied to FedEx future
https://www.commercialappeal.com/sto...ut/5143779002/
An interesting article about the possible accelerated financial failure of the USPS due to economic downturn. I could see how even a small reduction in USPS service could have a larger impact on FedEx. The article says that USPS is FedEx’s biggest customer; I didn’t know that. I know UPS is tied in there too.
Not being a negative Nancy here, just keeping an eye out for any black swans swimming too close to Purple. This one may have merit, unfortunately. What say you?
An interesting article about the possible accelerated financial failure of the USPS due to economic downturn. I could see how even a small reduction in USPS service could have a larger impact on FedEx. The article says that USPS is FedEx’s biggest customer; I didn’t know that. I know UPS is tied in there too.
Not being a negative Nancy here, just keeping an eye out for any black swans swimming too close to Purple. This one may have merit, unfortunately. What say you?
04-20-2020, 11:52 PM
#2
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Joined APC: Aug 2019
Posts: 1,024
[QUOTE=DirtyPurple;3037132]https://www.commercialappeal.com/sto...ut/5143779002/
I think you are right to be concerned. We hired into HKG because we had to. Supposedly 22 million US workers unemployed. After this settles, we may see a reduced market in China as countries try to move their purchases to other places. Some pharma manufacturing may move to the US. And with small businesses closing, there will be a smaller domestic market for years. The USPS is a big part of FedEx. As much as I want FedEx to profit, as a taxpayer I think the USPS needs to go. The USPS has been failing for years. Now, maybe companies like FedEx and UPS could take over for the postal service. Its all a guess.
I think you are right to be concerned. We hired into HKG because we had to. Supposedly 22 million US workers unemployed. After this settles, we may see a reduced market in China as countries try to move their purchases to other places. Some pharma manufacturing may move to the US. And with small businesses closing, there will be a smaller domestic market for years. The USPS is a big part of FedEx. As much as I want FedEx to profit, as a taxpayer I think the USPS needs to go. The USPS has been failing for years. Now, maybe companies like FedEx and UPS could take over for the postal service. Its all a guess.
04-21-2020, 02:51 AM
#3
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Joined APC: Aug 2012
Posts: 670
We have been moving low yield USPS packages to our Ground division since Q1 FY2020. This isn't news to our management team.
https://www.fool.com/earnings/call-transcripts/2019/09/18/fedex-corp-fdx-q1-2020-earnings-call-transcript.aspx
https://www.fool.com/earnings/call-transcripts/2019/09/18/fedex-corp-fdx-q1-2020-earnings-call-transcript.aspx
04-21-2020, 06:41 AM
#4
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Posts: 279
Originally Posted by DirtyPurple
https://www.commercialappeal.com/sto...ut/5143779002/
An interesting article about the possible accelerated financial failure of the USPS due to economic downturn. I could see how even a small reduction in USPS service could have a larger impact on FedEx. The article says that USPS is FedEx’s biggest customer; I didn’t know that. I know UPS is tied in there too.
Not being a negative Nancy here, just keeping an eye out for any black swans swimming too close to Purple. This one may have merit, unfortunately. What say you?
An interesting article about the possible accelerated financial failure of the USPS due to economic downturn. I could see how even a small reduction in USPS service could have a larger impact on FedEx. The article says that USPS is FedEx’s biggest customer; I didn’t know that. I know UPS is tied in there too.
Not being a negative Nancy here, just keeping an eye out for any black swans swimming too close to Purple. This one may have merit, unfortunately. What say you?
04-21-2020, 07:03 AM
#5
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Joined APC: Mar 2006
Position: B767 FO
Posts: 421
Originally Posted by DirtyPurple
https://www.commercialappeal.com/sto...ut/5143779002/
An interesting article about the possible accelerated financial failure of the USPS due to economic downturn. I could see how even a small reduction in USPS service could have a larger impact on FedEx. The article says that USPS is FedEx’s biggest customer; I didn’t know that. I know UPS is tied in there too.
Not being a negative Nancy here, just keeping an eye out for any black swans swimming too close to Purple. This one may have merit, unfortunately. What say you?
An interesting article about the possible accelerated financial failure of the USPS due to economic downturn. I could see how even a small reduction in USPS service could have a larger impact on FedEx. The article says that USPS is FedEx’s biggest customer; I didn’t know that. I know UPS is tied in there too.
Not being a negative Nancy here, just keeping an eye out for any black swans swimming too close to Purple. This one may have merit, unfortunately. What say you?
I’m not a doom and gloom guy, but you are right, things will be different around here. We are going to take a hit because of the economic fallout, but fortunately it won’t be the gut shot the passenger carriers took. Things will be different for sure and certainly will be interesting to see what has changed around here when the dust settles.
04-21-2020, 07:05 AM
#6
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Joined APC: Mar 2006
Position: B767 FO
Posts: 421
[QUOTE=Stan446;3037158]
The USPS isn’t tax payer supported. They generate their own revenues through their sales. Congress does control how the USPS operates however. Many point to the Congress mandated retiree pre-funding rules as part of their problem.
Originally Posted by DirtyPurple
https://www.commercialappeal.com/sto...ut/5143779002/
I think you are right to be concerned. We hired into HKG because we had to. Supposedly 22 million US workers unemployed. After this settles, we may see a reduced market in China as countries try to move their purchases to other places. Some pharma manufacturing may move to the US. And with small businesses closing, there will be a smaller domestic market for years. The USPS is a big part of FedEx. As much as I want FedEx to profit, as a taxpayer I think the USPS needs to go. The USPS has been failing for years. Now, maybe companies like FedEx and UPS could take over for the postal service. Its all a guess.
I think you are right to be concerned. We hired into HKG because we had to. Supposedly 22 million US workers unemployed. After this settles, we may see a reduced market in China as countries try to move their purchases to other places. Some pharma manufacturing may move to the US. And with small businesses closing, there will be a smaller domestic market for years. The USPS is a big part of FedEx. As much as I want FedEx to profit, as a taxpayer I think the USPS needs to go. The USPS has been failing for years. Now, maybe companies like FedEx and UPS could take over for the postal service. Its all a guess.
04-21-2020, 07:14 AM
#7
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Joined APC: Feb 2007
Position: FO
Posts: 3,032
[QUOTE=OKLATEX;3037277]
The USPS isn’t tax payer supported. They generate their own revenues through their sales. Congress does control how the USPS operates however. Many point to the Congress mandated retiree pre-funding rules as part of their problem.
Also, the USPS can only invest there Retiree Health Benefits Fund into US treasuries, not the stock market. Essentially guaranteeing it will always be under funded.
Originally Posted by Stan446
The USPS isn’t tax payer supported. They generate their own revenues through their sales. Congress does control how the USPS operates however. Many point to the Congress mandated retiree pre-funding rules as part of their problem.
04-21-2020, 07:54 AM
#8
done, gone skiing
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Position: Rocking chair
Posts: 1,601
The post office isn't going anywhere. Rural America depends on it, Rural America has out sized political clout and no private delivery service is going to do the service for the cost the consumer is willing to pay for 1st class mail. More likely, the internet will do to the post office what it's been doing to multiple industries for the last 25 years, make it more irrelevant. Less 3rd class and less 1st class, but not an elimination of either. It will continue to shrink but will be there for the forceable future.
04-21-2020, 08:59 AM
#9
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Joined APC: Jul 2010
Position: BE-20, LR35
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[QUOTE=Stan446;3037158]
Do you know how the USPS is funded? It’s not through tax dollars....
Originally Posted by DirtyPurple
as a taxpayer I think the USPS needs to go. The USPS has been failing for years.
04-21-2020, 01:33 PM
#10
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Joined APC: Apr 2006
Position: MD-11 Captain
Posts: 4,304
Originally Posted by dckozak
The post office isn't going anywhere. Rural America depends on it, Rural America has out sized political clout and no private delivery service is going to do the service for the cost the consumer is willing to pay for 1st class mail. More likely, the internet will do to the post office what it's been doing to multiple industries for the last 25 years, make it more irrelevant. Less 3rd class and less 1st class, but not an elimination of either. It will continue to shrink but will be there for the forceable future.
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