QUOTE: Originally posted by MP173 SP: Great explanation of the FEDEX system. Thanks. RVOS....any slowdown in trailer orders at your plant? I am hearing things are beginning to slowdown a bit. I sell a related product that goes on trailers and we are pretty busy right now. ed
Randy Vos
"Ever have one of those days where you couldn't hit the ground with your hat??" - Waylon Jennings
"May the Lord take a liking to you and blow you up, real good" - SCTV
Yes we are on time but this is yesterdays train
QUOTE: Originally posted by dldance last fall I saw quite a few Fedex trailers on BNSF right about the time that fuel prices soared. dd
QUOTE: Originally posted by SP9033 QUOTE: Originally posted by karen3172 If Fedex doesn't ship by rail and does only by truck how do they compete UPS? Unlike FedEx, which has two separate companies in the package business, UPS is one company in both air and ground transportation of packages. For this reply, lets separate this into air and ground transportation. FedEx Ground, the old "RPS" company verses UPS ground. FedEx Ground employees are mostly contractors. Route drivers are independent contractors and purchase their routes and trucks from FedEx. As independent contractors for FedEx Ground, the workers, pay all taxes for their Social Security, Medicare, state industrial combinsation, and state disability insurance (where required). For employees, these are mostly divided 50/50, half paid by the employee and the other half paid by the employer. The FedEx Ground contractor also pays for all insurance on the truck, along with all maintenance costs for the delivery truck. They also bare the major portion of any retirement program and also pay the full cost on medical insurance. A FedEx Ground delivery driver, with a good route, might gross $100,000 to $120,000 bucks or more, after the above mentioned expenses the net on income could drop to as low as $45,000 to $55,000. A UPS Ground driver nets between $55,000 to $70,000. The same forces apply to line drivers of FedEx Ground, which deliver packages between stations. Unlike FedEx Ground, UPS workers are all employees of the company, and have always been. They mostly only pay half on the taxes mentioned above. UPS pays all costs of health and welfare, retirement and medical insurance. There is no truck costs paid by UPS Ground employees. So, with an average wage of over $25 an hour, along with all the associate expenses, a UPS worker earns way over $40 an hour. Because costs of manpower at UPS is much greater than FedEx Ground, rail has for a long time always figured into UPS's business model. Because FedEx Ground employees are contractors, and the cost to the company is so much less than UPS employees, there is no need to really include rail in the business plan, except when seasonal demand out-strips capacity. FedEx ground competes with UPS mostly without intermodal rail because in relationship with UPS, workers at FedEX Ground work so much cheaper. This allows FedEx to keep its package business mostly on the highways. Again, I know very lttle about the package business, except what I read.
QUOTE: Originally posted by karen3172 If Fedex doesn't ship by rail and does only by truck how do they compete UPS?
QUOTE: Originally posted by KevinRC FedEx has a few divisions within itself. Overnight delivery is not going to be on a train, it travels by airplane, then truck. But some of the other options you might see on a train. I work for a trucking company in Canada and I pick up trailers off trains all the time. If the company has some time to get it to it's destination, going by train is cheaper. As previous answer it could be just equipment moves
QUOTE: Express is thats what i remeber
QUOTE: Originally posted by SP9033 QUOTE: Originally posted by the feed yep ive seen it happen on a a BNSF train in the LA area my dad is a pilot for fedex and he had no idea they put trailers on trains Again, FedEx the holding company, has three major componates, which company's trailers did you see? FedEx Express, FedEx Ground or FedEx Freight?
QUOTE: Originally posted by the feed yep ive seen it happen on a a BNSF train in the LA area my dad is a pilot for fedex and he had no idea they put trailers on trains
Russell
QUOTE: Originally posted by art11758 Fed Ex time sensitive/overnight service still goes by air. When they purchased American Freightways they aquired the infrastructure for dedicated team driven truck service. Considering how many highways there are, even in some of the remotest parts of this country, proper dispatch could and does easily give better transit time. JMO I'm far from an expert. Just a interested observer.
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