Fedex/USPS international mail

[vschip]

Anyone have a clue what this means??


FedEx to Deliver Premium Postal Int'l Service
Tuesday June 8, 8:07 am ET

WASHINGTON, June 8 /PRNewswire/ -- The U.S. Postal Service has selected FedEx Express to provide transportation and delivery for Global Express Guaranteed (GXG), the Postal Service's premier, date-certain international delivery service to more than 190 countries.

"This alliance brings two shipping powerhouses together to deliver the world to our customers," said Anita Bizzotto, Chief Marketing Officer. "It will enhance GXG's world-class service reliability, streamline handling, and bring the resources of both organizations to provide quality and value for postal customers."

This alliance also provides new service to Japan and Brazil and offers new GXG shipping labels and packages that feature both Postal Service and FedEx logos. About 7,400 Postal Service locations will offer the new co-branded service. As demand for this product grows, so will the number of Postal Service access points.

The contract with FedEx takes effect on July 1, replacing a previous agreement with DHL Worldwide Express. "We evaluated a number of international delivery providers and the review showed that FedEx offers the best combination of price, service, brand recognition and cost/network efficiencies," said Bizzotto. FedEx Express is a subsidiary of FedEx Corporation (NYSE: FDX - News).

"Global Express Guaranteed combines the convenience, speed and reliability of the Postal Service and FedEx Express," said T. Michael Glenn, FedEx executive vice president for Market Development. "This agreement is a natural extension of our long-standing relationship with the U.S. Postal Service." FedEx currently provides domestic air transportation for Priority Mail, Express Mail, and First-Class Mail and has nearly 5,000 drop boxes in U.S. Postal Service retail locations across the country.

"This alliance will boost popularity and performance for Global Express Guaranteed, and thousands of international shippers will be the beneficiaries," said Bizzotto.

 

[AlbieF15]

Can somebody hand me a towel? I...uh....need to change clothes....


This is very, very, very, very good news....

 

[Xdriver]

I hand delivered my resume to Jack Lewis over a month ago. SO what does this mean for hiring??? Thanks !!

 

[FedExpert]

So this is the elusive international Postal Contract. There are rumors which come true. Great news.

 

[TonyC]

I hand delivered my resume to Jack Lewis over a month ago. SO what does this mean for hiring??? Thanks !!

Oh, probably nothing. I have it on firsthand word from the CEO (Fred Smith) that he's going to turn this company into a trucking company. (Honest, it's right here, printed on red paper, signed by him.)

Class A CDL is the ticket you need - - did you include that on your resume? We'll be looking for the highly motivated truck drivers that can make the Pacific crossings without a rest stop. Team drivers are out of the question since a sleeping driver is unproductive. International truck driver rest rules will apply to any route that dips more than 12 miles into the coastal waters, and we'll certainly be able to fabricate those rules ourselves. Rumor has it Fred has tapped the talents of a small group of JetBlue pilots to help develop ways to get around the domestic rest rules for truck drivers.


All kidding aside (and sorry for the poke at JetBlue, I just couldn't resist) the news bodes well for us all. Of course, the news is not available on the FedEx pilot website - - not only are we the last to know, they probably would prefer us NOT to know. I can't imagine this won't be mentioned in the next day of contract negotiations.

Be careful, though, with your enthusiasm. While it will certainly mean revenue, I don't know if it will mean new hiring. I've never heard of this product, and I can't imagine it producing sufficient volume overnight (pardon the pun) to merit additional flights, or additional crews. My guess is that we could fit all the Global Express Guaranteed (GXG) product in a small bag in the lower aft cargo section and hardly notice the difference. I might be wrong - - wouldn't be the first time or the last - - but it in this case it would only be a good thing if I am.



TODAY = Anther Day Of Retro Pay

 

[vschip]

I agree with what you say Tony C, probably no extra hiring, but any extra revenue is good news. Anyone think if was interesting that there wasn't any mention of the financial deal in the news blurb? When the original USPS deal came out, all I kept hearing was 7 years/7 billion...

 

[VaB]

Bizarro. Direct from an email from the SCP himself:

"INTERNATIONAL MAIL CONTRACT. As ficticious as ever"

Guess he's kept in the mushroom locker with the rest of us. But like Tony said, this will probably not instantly ramp up ops. But, on the other hand, it certainly doesn't hurt. It'll be interesting to see how the company spins this with negotiations going on.

 

[Goose17]

hmmmm?

Well, this does sound like good news. I am curious though. Both when I spoke with JL and when he emailed the pilot group on rumor control, he said the international mail contract never existed and never will - it was ficticious.

Things that make you go hmmmmmmm.

On another note, I am watching the live web broadcast from the NTSB (currently on potty break) on the findings from the TLH FedEx 727 mishap. So far all fingers point to the 3 in the front.

Goose17 (patiently waiting for the final seat bid release today)

 

[hoya saxa]

yahoo!

Well, it must mean something for new hiring because KD called me this morning for a 23/24 June interview! Just when I thought my phones must be defective...

hoya

 

[KAFTKTA]

More info from Reuters!

Reuters
Post Office: FedEx for Overseas Delivery
Tuesday June 8, 12:01 pm ET

MIAMI (Reuters) - The U.S. Postal Service said on Tuesday that FedEx Express, a unit of FedEx Corp. (NYSE:FDX - News), will on July 1 take over delivery of its overseas Global Express Guaranteed packages from DHL Worldwide Express (DHL.UL).

[size=-2]ADVERTISEMENT[/size]
http://rd.yahoo.com/SIG=126dftpa4/M...http://smallbusiness.yahoo.com/webhosting?p=1The contract currently generates about 8,000 express shipments monthly, according to a spokesman for DHL, a transport giant which makes hundreds of millions of deliveries annually within the United States.

"We were losing money on the deliveries and weren't willing to go to the rates offered by FedEx," DHL spokesman Jonathan Baker said. "The revenue was about $4 million, and we split that."

FedEx, which already transports USPS mail and packages domestically under existing agreements, believes the Global Express Guaranteed contract will add incrementally to FedEx's priority volumes from the United States and had potential to grow, according to spokesman Jess Bunn.

FedEx carried more than 392,000 priority items from the United States on an average day last quarter, Bunn said, while declining to detail the company's volume and revenue expectations from the deal.

The postal agency said in a news release that the FedEx agreement calls for the co-branded international service to be offered at about 7,400 USPS locations. FedEx already has more than 5,000 of its drop boxes at USPS outlets.

"We evaluated a number of international delivery providers and the review showed that FedEx offers the best combination of price, service, brand recognition and cost/network efficiencies," said Anita Bizzotto, chief marketing officer for the USPS. Global Express Guaranteed offers date-specific international delivery service to more than 190 countries.

 

[Huck]

Wake up guys - I used to fly those DHL flights to Midlands from JFK & CVG - 2 DC-10's a day. And about 16 757's on the other end to distribute around Europe. This means more flying, much more. Hoist one to those marketing guys who brought in this very big fish.

 

[Murdawg5]

What's our European Outbound Volume??

This is definately good news, with a little caution thrown in... Does anyone know what our Euopean/Pacific outbound package volumes are??? If we're already full, then we HAVE to fly more flights.... On the other hand, if we're going outbound only 1/2 to 3/4 full, then we might not be adding that many flights... It seems to me that we might have undercut DHL on the pricing because we can handle the extra freight without adding the extra flights... We seem to be "mostly" full going out of ANC to NRT from what I've experienced... That being said, compared to what we're already flying overseas, exactly how much international frieght does this deal entail??? What percentage increase in freight will this bring us?? The answers to these questions will determine the future hiring picture IMO...

The previous rumors I've heard in the past few months is that the DC-10's will be doing most of the "increased" European load, flying to CDG from MEM/EWR... If this is the case, then we'll be hiring more guys so we can still fill the domestic routes the 10's have been flying, and because of the ineficiencies(sp?) naturally associated with international crew requirements (longer layovers, infrequency of flights, 3 crew members vs. 2 crew members, etc.)

All that being said, I'm cautously optimistic... This is NOT BAD NEWS anyway you look at it... Except JL is out of the loop

Take Care!!!
Murdawg5

 

[Goose17]

they finally released it on our pilot web site...

News

FedEx gets Postal Service int'l express business

MIAMI, June 8 (Reuters) - The U.S. Postal Service said on Tuesday that FedEx Express, a unit of FedEx Corp., will on July 1 take over the delivery of its overseas Global Express Guaranteed packages from DHL Worldwide Express.

"About 7,400 Postal Service locations will offer the new co-branded service. As demand for this product grows, so will the number of Postal Service access points," the USPS said in a news release.

The postal agency gave no financial details for the agreement with FedEx, which already transports much USPS mail and packages domestically under existing agreements. FedEx also has more than 5,000 of its drop boxes at USPS outlets.

"We evaluated a number of international delivery providers and the review showed that FedEx offers the best combination of price, service, brand recognition and cost/network efficiencies," said Anita Bizzotto, chief marketing officer for the USPS.

Global Express Guaranteed offers date-certain international delivery service to more than 190 countries.

Reuters English News Service

06/08/2004

 

[Spur]

8000 shipments a month? Thats 300-400 shipments a day. That wouldn't fill one can, am I missing something?

 

[AlbieF15]

I wouldn't be in a rush to break out the calculators and figure out how much extra volume/cash we will be getting. Instead, I am happy we got our foot in the door!

We have had several incremental postal lift increases with our domestic contract. I suspect once we get rolling here, the same thing will happen.

If we don't add a single plane or pilot, we will at least be making more money for Uncle Fred. That means a bigger pot to fight over, and more ammo to "de-tune" the optimizer and make some of those hub turn lines (discussed on another thread) a bit less taxing. Hard to say "we can't afford to back off" when you just got a lucrative new international contract. Although they did argue a bit over the wording, I watched the NTSB TLH hearing today on the webcast and the word "FATIGUE" did in fact get into the findings and the probable cause line. Even if we don't add a dozen international DC10s to the mix, if we'd just add a few 727 flights here and there to keep hub turn cities pure and perhaps eliminate the dreaded post 3 am 3 leg flight, we would likely increase safety, our Q of life, and have to add a few pilots to support the additional flying.

It will be interesting to see if Sandman's rumors about the safety review are accurate.

C'mon bid results....

 

[klhoard]

Well, this does sound like good news. I am curious though. Both when I spoke with JL and when he emailed the pilot group on rumor control, he said the international mail contract never existed and never will - it was ficticious.

Things that make you go hmmmmmmm.

I know I'm going out on a limb here, but could it be just the TEENIEST bit possible that he was, uhhhhh, how do I put this. . . fibbing??

BTW Goose, CONGRATS on the promotion!! Now I have to change my Flightinfo smart-alek remark by my avatar!!

 

[AlbieF15]

Citation Man,

I know not everything FDX does is perfect, but so far they have done pretty darn well...FDX ground, mail contract, Kinkos buyout, etc etc.

I'm not an MBA, but one thing you do have to give our Mgt is they seem to know how to make money and find good deals. I'm sure they didn't pick up this "money losing" contract without a lot of analysis.

As for DHL...well...if it was such a bad deal for them, why did they bid for it?

As for Jack...well...I'm going to just assume he was in the dark as much as the rest of us. However, this can't help but make you say "hmmm?" when you read his letters. Hope he explains this one to us...

 

[Murdawg5]

Your right Albie!! If JL didn't know anything about the contract, then he should have said as much... One of three senarios exist... 1) He knew we were going to get it, but was "fibbing"... IMO, if this is the case, he was wrong to do so and should have said nothing (unless he was told by higher-ups to put out the misinformation for unknown reasons)... 2)He really believed that we weren't getting the contract... If this is so, then he was just plain wrong and his credibility has been diminished... or 3) He wasn't SURE we were going to get it and didn't want to bolster the spirits of those in the pool and the rest of the pilot force only for us all to be let down... In this case, he should not have used the words that he used.....

My gut feeling is that #3 is the most likely event, with possibly of a little #1 thrown in the mix...

On another subject that is not the best news for those wannabe FedEx guys....
I took a resume into JL's office last Friday... The canditate that I was pushing had 6 years as a T-38 FAIP, worked for SWA for a year, quit and went to UAL, was a 727 S/O IOE instructor, flew the 767, the Airbus, has 6500ish hoursand is currently working as a 737 FO in Chicago... He is not on furlough and has about 500 guys junior to him... When I gave the resume to JL he would not take it... He said thank you for coming in, but your bud doesn't have a chance... When I explaned to him that he was not on furlough, he said it didn't matter... He stated that it wouldn't be (I'm paraphrasing) "fair to the guys who are on furlough, nor to the guys who haven't allready had a shot at the majors... Your friend already has turned down a winner with SWA and now he wants me to hire him in front of the others who never have had a shot at the majors??? I'm sorry but it's not going to happen... " I then explained to him that I was not the only guy who was going to bring a resume in for my freind, but there were SIX other guys on their way to his office in the next couple of weeks with his resume... He told me that "I'm going to tell them the same thing I told you... I'm sorry but that's the way it has to be..."

The whole conversation was very cordial and I realize that he gets paid to make the tough decisons... I respect the fact that he told me his thoughts without any rancor or diminishment towards my friend... However, since when has FedEx (or the world for that matter) been "fair", and when did we stop hiring guys that are presently employed by a major... I know and kinda' understand the reasons why we don't want to hire someone whose been furloughed (eventhough we are passing up MANY candidates who would be VERY qualified), but aren't we possibly being a little too picky??? If were not hiring guys from the majors, then JL should say that in an email to the pilot force... My bud had his hopes up (and rightly so IMO with SIX FedEx pilots taking his resume into JL's office) only to be shot down... Such is life, but we all should have known JL's policy if this is now the case....

It must be nice for our hiring department to have the luxury to make the decisons that they are....

OK... Enough ranting....
Take Care,
Murdawg5

 

[Spur]

I'll agree with JL on this one murdawg. Although you're right about putting that policy out in an email.

As far as the Intl Mail contract, its probably too small to even bother telling JL about. No new pilots required, no new routes I'm sure. So why would he know? Maybe I'm wrong, but $4 million in REVENUE, split with the Post office? The profit on that won't pay for the shrimp at the AOC Christmas buffet!

Maybe the plan is to grow the service with the help of FedEx's logo. I mean, I've never even heard of USPS Global Express Guaranteed.

Oh well, back to the ADM (Tuna?? Again???)

 

[flyndesk]

Dawg

I feel for your buddy.

But... (you knew a "but" was coming!)

Having six recs is great. That is how so many of us get our jobs. But is it really a shoo-in and impressive? I doubt it. I am sure all military guys can get a rec from just about everyone in their squadron, or guys they have known while on duty (as commuter/civilian guys, too). That's why it seems there are hiring spurts where all the new hires are from the same background and knew each other. I remember a few years back a bunch of guys from Luke AFB got on at SWA, and they were joking about the "Luke Mafia."

So, yeah, I feel his pain. I am sure he's a great guy and good pilot. But I can see why 6 recs didn't pull him to the other side.