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Old 07-11-2023, 03:49 PM
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Default Postal Contract renewal 2024

I read on a few different post about the Postal Contract but being renewed. I have not read anything that actually supports this. Usually billion dollar plus contracts are not leaked ahead of time.

I am sure we will have to have a competitive bid against whoever else is trying to get it awarded. I imagine our main competitor is Amazon.

I have read that the postal service wants to cut cost
because they are losing money, but when have they ever made money! Postal overnight is dictated by the ability to get it delivered on time. I doubt they have been sending packages by air when they can truck them.
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Old 07-11-2023, 03:51 PM
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Should have read “that I have not heard that the postal contract is not being renewed!”
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Old 07-11-2023, 04:03 PM
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Originally Posted by max8222 View Post
I read on a few different post about the Postal Contract but being renewed. I have not read anything that actually supports this. Usually billion dollar plus contracts are not leaked ahead of time.

I am sure we will have to have a competitive bid against whoever else is trying to get it awarded. I imagine our main competitor [the company is counting on, is our very own] Weakened Scope language...
Fixed that for you .

What you posted smells of leverage.
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Old 07-11-2023, 07:53 PM
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Originally Posted by max8222 View Post
I read on a few different post about the Postal Contract but being renewed. I have not read anything that actually supports this. Usually billion dollar plus contracts are not leaked ahead of time.

I am sure we will have to have a competitive bid against whoever else is trying to get it awarded. I imagine our main competitor is Amazon.

I have read that the postal service wants to cut cost
because they are losing money, but when have they ever made money! Postal overnight is dictated by the ability to get it delivered on time. I doubt they have been sending packages by air when they can truck them.
https://about.usps.com/news/statements/022317.htm

well, looks like until Sept 2024 at least. But this is a federal contract, subject to bidding and budget rules on the federal side. Who knows today that it "will not be renewed?"
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Old 07-12-2023, 06:23 AM
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Originally Posted by max8222 View Post
Should have read “that I have not heard that the postal contract is not being renewed!”
CEO of FedEx Express, Richard W. Smith gave a presentation at the FedEx Retirees Luncheon. Paraphrasing from what was posted on JF about his speech, he said the postal contract will be significantly smaller, the day sort around 30-40% smaller. It is because the current USPS Post Master General wants to truck as much mail and slow it down instead of paying more money to fly it. Aka more DRIVE.
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Old 07-12-2023, 06:43 AM
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Originally Posted by PurpleToolBox View Post
CEO of FedEx Express, Richard W. Smith gave a presentation at the FedEx Retirees Luncheon. Paraphrasing from what was posted on JF about his speech, he said the postal contract will be significantly smaller, the day sort around 30-40% smaller. It is because the current USPS Post Master General wants to truck as much mail and slow it down instead of paying more money to fly it. Aka more DRIVE.
The only upside to that is that it will drive customers directly to FedEx if the USPS no longer offers a time critical product.
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Old 07-12-2023, 08:13 AM
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Originally Posted by UnusualAttitude View Post
The only upside to that is that it will drive customers directly to FedEx if the USPS no longer offers a time critical product.
Hopefully....because that would take that package to a higher yield product, we wouldn't have to recover all the loss of USPS...but no doubt it will affect the bottom line. Hopefully that will encourage our head-shed to be less dependent on the USPS... work harder for other business....I can't tell you how many business people I know that don't use FDX anymore because we've damaged packages or let them down. We have soiled our brand among some previously loyal customers.
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Old 07-12-2023, 08:49 AM
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Originally Posted by UnusualAttitude View Post
The only upside to that is that it will drive customers directly to FedEx if the USPS no longer offers a time critical product.
I am sure the contract will require whatever carrier to provide time critical capability
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Old 08-09-2023, 08:09 AM
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https://abcnews.go.com/US/wireStory/...ears-102116482

So, if we have already lost this flying, what does this mean going forward? Do we ship more than just first class letters for USPS? I was under the assumption that this effort by the USPS was still to come and that, as a result, we would lose a significant portion of the day flying. I don’t have actual numbers on afternoon departures, but just being around MEM for jumpseats or otherwise, it appears there’s still a lot of afternoon launches.
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Old 08-09-2023, 09:36 AM
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Originally Posted by Smoked View Post
https://abcnews.go.com/US/wireStory/...ears-102116482

So, if we have already lost this flying, what does this mean going forward? Do we ship more than just first class letters for USPS? I was under the assumption that this effort by the USPS was still to come and that, as a result, we would lose a significant portion of the day flying. I don’t have actual numbers on afternoon departures, but just being around MEM for jumpseats or otherwise, it appears there’s still a lot of afternoon launches.
most of the postal freight goes through IND during the day
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