Potential financial disaster looming for FedEx?

[Clyde]

I think the whole "who is better, purple or brown?" argument is one not worth debating.

As far as I'm concerned, it is like Coke vs Pepsi. You have hardcore Coke drinkers and you have hardcore Pepsi drinkers, and then you have people who drink both with no rhyme or reason. Either way, both companies are successful and controlling in the market.

I think the same can be said for UPS and FedEx. Both are giants, each has it's own core of followers, and then there are those who use both. I don't see one putting the other out of business anytime soon. However, I do see the two of them making it almost impossible for a third party to enter the market and be just as successful.

 

[Check Essential]

WTF, over? The ups drivers make $70k a year? What's the typical lifestyle? M-F 8 to 5 or are there working 70 hours a week for that?

The guy I did my new-hire ride with told me he never works less than a 12-hour day. He’s paid time-and-a-half after 8 hours, but said it physically impossible to complete his route in less than 12 hours.

CE

 

[Midnight Mike]

Or maybe not so smart. After accepting FedEx contracts, contractor-drivers have filed 28 lawsuits in 22 states, most seeking class action status, covering as many as 7,000 current and former drivers, plaintiff lawyers say. Arguing they're not given full autonomy, they're demanding expense reimbursement, overtime and benefits. "

So much for ethics

 

[BR549]

I think the whole "who is better, purple or brown?" argument is one not worth debating.

As far as I'm concerned, it is like Coke vs Pepsi. You have hardcore Coke drinkers and you have hardcore Pepsi drinkers, and then you have people who drink both with no rhyme or reason. Either way, both companies are successful and controlling in the market.

I think the same can be said for UPS and FedEx. Both are giants, each has it's own core of followers, and then there are those who use both. I don't see one putting the other out of business anytime soon. However, I do see the two of them making it almost impossible for a third party to enter the market and be just as successful.

You just wait till somebody starts a LCC cargo airline, then your gravy train days will be over!

 

[capt_zman]

A little jealous this morning aren't we? BTW, my newborn baby has some gravy train for you if you're interested....

 

[buster232]

Both are good companies, Both are good jobs. Stock price doesn't mean much that as far as comparison due to dilution. For those who care to know;

http://finance.yahoo.com/q/co?s=UPS

 

[skykid]

Quote:
Originally Posted by Clyde
I think the whole "who is better, purple or brown?" argument is one not worth debating.

As far as I'm concerned, it is like Coke vs Pepsi. You have hardcore Coke drinkers and you have hardcore Pepsi drinkers, and then you have people who drink both with no rhyme or reason. Either way, both companies are successful and controlling in the market.

I think the same can be said for UPS and FedEx. Both are giants, each has it's own core of followers, and then there are those who use both. I don't see one putting the other out of business anytime soon. However, I do see the two of them making it almost impossible for a third party to enter the market and be just as successful.

You just wait till somebody starts a LCC cargo airline, then your gravy train days will be over!

You got that right. But as Clyde will agree I'm sure, it is logistically impossible to do this because you're just not going to compete with the big two without the worldwide network. No doubt there are thousands of pilots willing to do the same job as UPS/FedEx pilots for less compensation, but there is no vehicle to do it. You can't compete in this arena by cherry picking routes with shiny new jets.

 

[Huck]

No doubt there are thousands of pilots willing to do the same job as UPS/FedEx pilots for less compensation, but there is no vehicle to do it.

I prefer to call this "Project X" and it is my #1 FDX concern.

I'd be willing to bet there's a dozen MBA's in Memphis working on it already - moving flying offshore, wholly owned subsidiaries, mergers with shifting of flying, whatever. Think it can't happen? Ask an Atlas pilot. I love my company but I am not betting the farm on a stable job for the next twenty years.

Watch the EU/US open skies talks closely this fall. And wonder - as I do - about who is going to be doing the flying out of Guangzhou....

 

[skykid]

I prefer to call this "Project X" and it is my #1 FDX concern.

I'd be willing to bet there's a dozen MBA's in Memphis working on it already - moving flying offshore, wholly owned subsidiaries, mergers with shifting of flying, whatever. Think it can't happen? Ask an Atlas pilot. I love my company but I am not betting the farm on a stable job for the next twenty years.

Watch the EU/US open skies talks closely this fall. And wonder - as I do - about who is going to be doing the flying out of Guangzhou....

I agree with you 100%. FedEx might not be susceptable to what has happened to the "legacies" having to match LCCs in terms of compensation, but there is more than one way to attack, as you wisely point out. Like you, I would not bet on having a stable job anywhere in this industry in the next 20 years, and certainly wouldn't count on a pension, even at the more stable companies.

 

[SDF2BUF2MCO]

I think the same can be said for UPS and FedEx. Both are giants, each has it's own core of followers, and then there are those who use both. I don't see one putting the other out of business anytime soon. However, I do see the two of them making it almost impossible for a third party to enter the market and be just as successful.

While short term that may be true, I think DHL will bear watching within the next few years. They are doing things that could potentially make them a major player in the total supply chain market which includes air freight. FWIW, I was stuck in a middle seat the other day between two junior execs from two different companies. While I found their conversation a total bore, both were saying FedEx (in their opinion) was actually behind the curve in pursuing future growth. Again they were talking about total supply chain but if a company can control the supply chain then chances are they're going to secure the air freight piece. "Old fashioned" UPS has actually done a decent job in preparing for future growth.