Selling the UPS Freight business
01-25-2021, 08:45 AM
#1
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Selling the UPS Freight business
https://www.google.com/amp/s/www.wsj...on-11611592797
I’m not too sure on how UPS freight tied into our business model, but it is concerning that we sold it for so much less than we bought it. Thoughts on the air side impact or whether or not this is a positive thing?
I’m not too sure on how UPS freight tied into our business model, but it is concerning that we sold it for so much less than we bought it. Thoughts on the air side impact or whether or not this is a positive thing?
01-25-2021, 10:01 AM
#2
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Originally Posted by fightandflight
https://www.google.com/amp/s/www.wsj...on-11611592797
I’m not too sure on how UPS freight tied into our business model, but it is concerning that we sold it for so much less than we bought it. Thoughts on the air side impact or whether or not this is a positive thing?
I’m not too sure on how UPS freight tied into our business model, but it is concerning that we sold it for so much less than we bought it. Thoughts on the air side impact or whether or not this is a positive thing?
01-26-2021, 05:03 AM
#4
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Originally Posted by Pyper
No loss there specially on the air side which never carried LTL freight.
01-26-2021, 05:56 AM
#5
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Originally Posted by nonrev dad
FedEx may take a different approach. Any time I ship low volume/high weight (e.g. car engine in crate) from the EU it rides on a FedEx aircraft to Memphis then onto a FedEx Freight truck. It works well.
01-26-2021, 12:26 PM
#6
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Joined APC: Mar 2014
Posts: 176
Originally Posted by Pyper
They were never part of ups to begin with..It's the old overnight that they purchased about 15 yrs ago..LTL was never a money maker and their 2020 revenue was only 3 billion which was barely a break even. No loss there specially on the air side which never carried LTL freight. The only impact will maybe felt on the SCS side.
Thats not accurate. There’s always UPS Freight trailers at the Worldport Freight facility.
01-26-2021, 01:12 PM
#7
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Originally Posted by Pyper
They were never part of ups to begin with..It's the old overnight that they purchased about 15 yrs ago..LTL was never a money maker and their 2020 revenue was only 3 billion which was barely a break even. No loss there specially on the air side which never carried LTL freight. The only impact will maybe felt on the SCS side.
01-27-2021, 04:46 PM
#8
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Joined APC: Feb 2013
Posts: 1,339
Originally Posted by C2078
It’s never a good idea to cede any space to competitors. If the number you mention is accurate ($3B in revenue), then the impact to the bottom line is minimal, yet keep the full portfolio of products for our customers. Now customers that used that service will have to go somewhere else and you don’t think that business is going to court the rest of their business? This obsession with better not bigger is very concerning.
It is an obsession which she’s known for at home despot too..
The new ceo will focus on the next ~5 years, which is the typical tenure of a brown ceo. She’ll make sure the dividend stays solid and the balance sheet looks good.
She’ll keep ”streamlining”, or shrinking, ceding to our competition because the long term viability of ups is NONE of her concern. She has no pension tied to ups and once she’s gone she can sell all the stocks
So far she’s made scott davis, ups’ worst ceo EVER, very proud. Time will tell.
01-28-2021, 12:27 AM
#9
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Posts: 110
I get your points, but I don’t necessarily agree it is NEVER a good idea to cede space to competitors- if part of your business is draining resources from your primary business for little return, and you aren’t willing to commit even more resources in an attempt to change that, it could make sense to cut bait. Again, I’m not exactly sure how LTT freight integrated with our other offerings. I think the real test of her leadership is what she chooses to do with the resources now freed up. Are we going to “enhance shareholder value” through ridiculous short term financial magic, or are we going to truly make other parts of the company better with smart investment and an eye toward a long term vision. In other words, can she successfully make the transition from CFO to CEO.
03-25-2021, 12:06 PM
#10
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Joined APC: Jun 2007
Position: Douglas Aerospace post production Flight Test & Work Around Engineering bulletin dissembler
Posts: 11,989
Originally Posted by fightandflight
I get your points, but I don’t necessarily agree it is NEVER a good idea to cede space to competitors- if part of your business is draining resources from your primary business for little return, and you aren’t willing to commit even more resources in an attempt to change that, it could make sense to cut bait. Again, I’m not exactly sure how LTT freight integrated with our other offerings. I think the real test of her leadership is what she chooses to do with the resources now freed up. Are we going to “enhance shareholder value” through ridiculous short term financial magic, or are we going to truly make other parts of the company better with smart investment and an eye toward a long term vision. In other words, can she successfully make the transition from CFO to CEO.
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