AMZN Threat to FDX Is No Longer ‘Fantastical’
06-29-2019, 03:42 AM
#21
The NeverEnding Story
Joined APC: Sep 2005
Posts: 7,512
UPS had a $1.237B mark-to-market charge (loss) in Q4'18, $800M charger in Q4'17, and $2.651B charge in Q4'16.
FDX, on the other hand, had MTM gains of $10M in 2018, gains of $24M in 2017, and a charge of $1.5B in 2016.
Operationally, despite challenges with TNT integration and 'business realignment' FDX is still quite operationally profitable ($4.47B full year, 6.4% margin) - they just happened to take a significant accounting charge this time.
FDX, on the other hand, had MTM gains of $10M in 2018, gains of $24M in 2017, and a charge of $1.5B in 2016.
Operationally, despite challenges with TNT integration and 'business realignment' FDX is still quite operationally profitable ($4.47B full year, 6.4% margin) - they just happened to take a significant accounting charge this time.
07-01-2019, 02:36 AM
#22
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Joined APC: Feb 2013
Posts: 1,339
Originally Posted by atpcliff
I would not be surprised if Amazon and UPS work together in some form...
Or it could be fdx after all? Several of my friends over at purple believe Fred will sell a majority stake of his company to amzn right before he retires.
07-01-2019, 04:17 AM
#23
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Originally Posted by whalesurfer
Maybe so?
Or it could be fdx after all? Several of my friends over at purple believe Fred will sell a majority stake of his company to amzn right before he retires.
Or it could be fdx after all? Several of my friends over at purple believe Fred will sell a majority stake of his company to amzn right before he retires.
07-01-2019, 06:12 AM
#24
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Joined APC: Apr 2005
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Originally Posted by wrxpilot
Ah, so he decided to stop carrying all of Amazon’s stuff right before selling them FedEx? That definitely makes a lot of sense, thanks for your valuable insight!
07-01-2019, 07:01 AM
#25
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Posts: 1,349
I don't think either company is at risk of going out of business due to Amazon Air. I think what has changed is that Amazon Air isn't something that can easily be undersold and put out of business. So we will likely see three big shippers (I'm not counting DHL.) in the US.
I think any move to increase the effect of regulators in the US would be the biggest threat to any company, and Amazon is the most exposed. They're dominating enough diverse markets that a federally ordered breakup, like was done to Microsoft, is plausible. I don't see a stronger SEC in the near future regardless of which party holds the presidency or any house of congress, however.
Simply having a strong presence in a competitive shipping market actually does wonders to allay the concerns of regulators that would otherwise think about breaking up Amazon too.
I'm a pilot, and my degree was in natural science stuff. Someone with more perspective on government oversight and financial regulation can probably shoot all kinds of holes in my ideas.
I think any move to increase the effect of regulators in the US would be the biggest threat to any company, and Amazon is the most exposed. They're dominating enough diverse markets that a federally ordered breakup, like was done to Microsoft, is plausible. I don't see a stronger SEC in the near future regardless of which party holds the presidency or any house of congress, however.
Simply having a strong presence in a competitive shipping market actually does wonders to allay the concerns of regulators that would otherwise think about breaking up Amazon too.
I'm a pilot, and my degree was in natural science stuff. Someone with more perspective on government oversight and financial regulation can probably shoot all kinds of holes in my ideas.
07-01-2019, 03:00 PM
#26
Gets Weekends Off
Joined APC: Mar 2014
Posts: 176
Originally Posted by Elevation
I don't think either company is at risk of going out of business due to Amazon Air. I think what has changed is that Amazon Air isn't something that can easily be undersold and put out of business. So we will likely see three big shippers (I'm not counting DHL.) in the US.
I think any move to increase the effect of regulators in the US would be the biggest threat to any company, and Amazon is the most exposed. They're dominating enough diverse markets that a federally ordered breakup, like was done to Microsoft, is plausible. I don't see a stronger SEC in the near future regardless of which party holds the presidency or any house of congress, however.
Simply having a strong presence in a competitive shipping market actually does wonders to allay the concerns of regulators that would otherwise think about breaking up Amazon too.
I'm a pilot, and my degree was in natural science stuff. Someone with more perspective on government oversight and financial regulation can probably shoot all kinds of holes in my ideas.
I think any move to increase the effect of regulators in the US would be the biggest threat to any company, and Amazon is the most exposed. They're dominating enough diverse markets that a federally ordered breakup, like was done to Microsoft, is plausible. I don't see a stronger SEC in the near future regardless of which party holds the presidency or any house of congress, however.
Simply having a strong presence in a competitive shipping market actually does wonders to allay the concerns of regulators that would otherwise think about breaking up Amazon too.
I'm a pilot, and my degree was in natural science stuff. Someone with more perspective on government oversight and financial regulation can probably shoot all kinds of holes in my ideas.
07-01-2019, 04:01 PM
#27
Banned
Joined APC: Sep 2015
Position: MD-11 FO
Posts: 493
Originally Posted by Tango Uniform
I wonder what the odds are of AMZ hauling domestic DHL air? DHL using AMZ domestic distribution channel like they did when they bought Airborne? In return AMZ uses DHL to expand Intl delivery? .
Now that’s a logical possibility right there.
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