Quote:
Originally Posted by Tango Uniform
How come UPS hasn’t experienced the same impact from the trade war? According to last UPS earnings report, their INTL network is doing well with Asia lift Intra Asia, UAE and Europe. Nobody is mentioning the TNT acquisition failures either.
I think our exposure to China is not as extensive as Purple. While we have a large international footprint, Fedex chooses to handle all the volume themselves. We also fly China, Singapore, Korea, etc, but loom at our flight ops footprint, not nearly as large as Fedex. I still don’t understand how we handle a similar Asia volume with a much smaller flight fleet. Third party? Contract? Must be. You folks have a huge Asia footprint. I can only guess the China volume vs UPS. You folks are doing everything right to capture expanding business, this trade war is just a speed bump (hopefully). If you read our last 10Q, Europe and Asia was a tad soft for us as well, US was the savior. Fred thinks 5-10 years. UPS thinks 1-2 years AT BEST, although it seems they are finally looking 5 years 😬. Fred is choosing the short term pain (CapEx, fleet expenditure, etc) for the health of the long term. No one has a crystal ball to know if it will work out. After all, 100 year old companies like GE, GM, Ford, etc have struggled mightily, nothing lasts forever, we can all hope Fred’s vision is the right one!!
Today
11-18-2023
