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FedEx Freight | 90%Discount for 90-DAYS

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SHUTTLE DRIVER

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Fed-EX"S way of trying to beat a horse while it's down. Lets give away the house while trying to put our competitor out of business. Is this a smart way of doing business? I think not! Look @ how much freight we picked up system wide. The powers to be are now scrambling to hire people system wide after laying off thousands of people.
What happens when they stop price matching? Does anybody really think current freight levels wil remain in this current economy? I don't!
 
SHUTTLE DRIVER said:
Fed-EX"S way of trying to beat a horse while it's down. Lets give away the house while trying to put our competitor out of business. Is this a smart way of doing business? I think not! Look @ how much freight we picked up system wide. The powers to be are now scrambling to hire people system wide after laying off thousands of people.
What happens when they stop price matching? Does anybody really think current freight levels wil remain in this current economy? I don't!
Click to expand...

WOW.....Hasn't this horse been beat to death.......:biglaugh:....Where have you been?...:biglaugh:
 
While it's obvious that we have greatly loosened up the pricing in the last three months or so, I haven't seen or heard anything that makes me believe we have a formal 90/90 program. Except here of course, where rumors are considered fact and evidence (or lack thereof) be damned!

oaf (snarky today)
 
Freight rates will only go up when:

1) The economy improves and freight demand goes up.

2) The LTL overcapacity goes away due to higher freight demand.

It is just that simple.


:shift:
 
SHUTTLE DRIVER said:
Fed-EX"S way of trying to beat a horse while it's down. Lets give away the house while trying to put our competitor out of business. Is this a smart way of doing business? I think not! Look @ how much freight we picked up system wide. The powers to be are now scrambling to hire people system wide after laying off thousands of people.
What happens when they stop price matching? Does anybody really think current freight levels wil remain in this current economy? I don't!
Click to expand...

Couple problems with your "theory".

1) I've checked with reliable sources in sales who de-bunk the 90-90 myth. Not saying we're not matching at some targeted accounts. But not accross the board, and not 90%.

2) Have you noticed that we (FXFE) are NOT the only ones extremely busy? Look around man, at all the leased trailers running around behind lot's of company trucks.

3) They'll stop price matching if/when they no longer find it profitable.

Let's move on to the next (more credible)topic :shift:
 
I got to ask did FedEx really lay off THOUSANDS of people really thousands as in more than one thousand like two or three thousands shoot and I thought because no one was there the other day I just a little late. I wish some one would turn out the lights if thousands of people have been laid off
 
SHUTTLE DRIVER said:
Last time I counted I think it was a couple of thousand. (in the 2000 neighborhood)
Click to expand...
I'll have take your word for it as I'm not up on all that it just seems to say thousands make it seem that Fedex was or is about to go under maybe some out there has a closer count
 
train said:
I'll have take your word for it as I'm not up on all that it just seems to say thousands make it seem that Fedex was or is about to go under maybe some out there has a closer count
Click to expand...

They did lay off at least a couple thousand. It started last year in November/December 08 and then they dug a little deeper into lay offs in February 09. Most are back to work now, they started putting them back in September or August and hundreds more hired up to this point.
 
SHUTTLE DRIVER said:
Fed-EX"S way of trying to beat a horse while it's down. Lets give away the house while trying to put our competitor out of business. Is this a smart way of doing business?
Click to expand...

Yes, it is.
Once YRCW goes out and the dust settles, then we go after these mid-sized outfits like SAIA, R&L, Central, etc.
Just target all their freight and haul it at a loss if need be.
FedEx as a $28 billion company with very profitable parcel operations can starve these outfits out for years.
Banks will not lend them $$$ and they will slowly choke to death.
Once they fold, we raise the rates.
Remember, this is not like truckload where a competitor can simply start another company under another name and haul freight again.
It takes years to build up lanes and density in an LTL network.
Now that my friends is good business.
 
Old AF said:
While it's obvious that we have greatly loosened up the pricing in the last three months or so, I haven't seen or heard anything that makes me believe we have a formal 90/90 program. Except here of course, where rumors are considered fact and evidence (or lack thereof) be damned!

oaf (snarky today)
Click to expand...
I've seen proof my salesman had a letter a customer of ours gave to him with the 90/90 spelled out pretty clear.
 
Mike Varnco said:
Yes, it is.
Once YRCW goes out and the dust settles, then we go after these mid-sized outfits like SAIA, R&L, Central, etc.
Just target all their freight and haul it at a loss if need be.
FedEx as a $28 billion company with very profitable parcel operations can starve these outfits out for years.
Banks will not lend them $$$ and they will slowly choke to death.
Once they fold, we raise the rates.
Remember, this is not like truckload where a competitor can simply start another company under another name and haul freight again.
It takes years to build up lanes and density in an LTL network.
Now that my friends is good business.
Click to expand...
Know sir that is stupid.I understand hauling as cheap as possible that is good bussiness.Never a good idea to purposfully loose money just to steal freight from another carrier.If you haul freight at a loss drives rate down to low whitch then negatively affects your carrier also.Trick is to be debt free haul for less while making same or more profit than your compition.
 
Mike Varnco said:
Yes, it is.
Once YRCW goes out and the dust settles, then we go after these mid-sized outfits like SAIA, R&L, Central, etc.
Just target all their freight and haul it at a loss if need be.
FedEx as a $28 billion company with very profitable parcel operations can starve these outfits out for years.
Banks will not lend them $$$ and they will slowly choke to death.
Once they fold, we raise the rates.
Remember, this is not like truckload where a competitor can simply start another company under another name and haul freight again.
It takes years to build up lanes and density in an LTL network.
Now that my friends is good business.
Click to expand...

None of this is true. We are not trying to put any one company out, just to raise the rates after they are gone. This about market share and it's relevance to stock price. Going after large accounts that we not that long ago shy ed away from because of the imbalance they create in certain freight lanes. Imbalance in freight lanes creates empty miles. The cost to any LTL company is the same weather we are empty or loaded. Line-haul is by far any LTL carriers largest expense. I'm going to use percentages because no one outside FedEx needs to know what the real numbers are. Just so you know these numbers came from our RVP in the central region. In our case Lets call this 100% per mile ( line-haul ), every mile empty or loaded. The difference now is the use of purchase vans (outside carriers) which are paid 57.7% per-mile one way to our 100% per-mile both ways. This gives us the ability take on large accounts and be more competitive giving us more market share. And keep freight lanes balanced.
This is great for the stock price because our income is not only from our customers but also from investors.
I know no one likes purchase vans. Including me but when you look at the big picture in the LTL market they make sense.
 
SHUTTLE DRIVER said:
Fed-EX"S way of trying to beat a horse while it's down. Lets give away the house while trying to put our competitor out of business. Is this a smart way of doing business? I think not! Look @ how much freight we picked up system wide. The powers to be are now scrambling to hire people system wide after laying off thousands of people.
What happens when they stop price matching? Does anybody really think current freight levels wil remain in this current economy? I don't!
Click to expand...

90% for 90 days is not true... we dont need the freight that bad... Thats from the top...just rumors
 
Jinx40 said:
None of this is true. We are not trying to put any one company out, just to raise the rates after they are gone.
Click to expand...

Explain to me how the Freight segment posted a $12 mil loss this quarter, while at the same time last year we had a $22 mil profit?
That is a $32 million swing into the red....all of this while both opcos (Freight and National) have been MUCH busier.
To give you some perspective...National set a record of over 21,500 shipments in the month of September. September of 08', we did just over 13,000 shipments.

How the heck do you move 65% more shipments, and yet show a loss?

And you think we are not discounting the hell out of freight?!?!?!?
You sir, are crazy.
 
Mr Varnco a glimpse

FedEx SEC filing Dec.18, 2009 (Freight, National,Critical) Quarter Ending Nov.30, 2009 dollars in Millions.
.....................................................................2009...2008....%change
Revenue..........................................................1,068..1,200....(12)
Salaries & Employee Benefits.................................513.....592.....(13)
Purchase Transportation.......................................168.....151.....11
Rentals...............................................................27......35.... (23)
Depreciation & Amortization....................................46......53.....(13)
Fuel..................................................................104....150.....(31)
Maintenance & Repairs...........................................35.....41..... (15)
Inter-company Charges..........................................98.....29......238
Other..................................................................89....117......(24)

Operating income (loss).........................................(12)....32.....(138)

Average Daily LTL Shipments (Thousands)................82.9....80.3......3
LTL Yield
Revenue Per Hundred Weight.................................17.09..19.44...(12)

From FedEx Investor Websit.
The Change in volume is up 3% not 65%.
Revenue per-hundred weight went down but so did most costs with two exceptions, Purchase & Inter-Company.
So where ya getting your #'s.
 
Jinx40 said:
FedEx SEC filing Dec.18, 2009 (Freight, National,Critical) Quarter Ending Nov.30, 2009 dollars in Millions.
.....................................................................2009...2008....%change
Revenue..........................................................1,068..1,200....(12)
Salaries & Employee Benefits.................................513.....592.....(13)
Purchase Transportation.......................................168.....151.....11
Rentals...............................................................27......35.... (23)
Depreciation & Amortization....................................46......53.....(13)
Fuel..................................................................104....150.....(31)
Maintenance & Repairs...........................................35.....41..... (15)
Inter-company Charges..........................................98.....29......238
Other..................................................................89....117......(24)

Operating income (loss).........................................(12)....32.....(138)

Average Daily LTL Shipments (Thousands)................82.9....80.3......3
LTL Yield
Revenue Per Hundred Weight.................................17.09..19.44...(12)

From FedEx Investor Websit.
The Change in volume is up 3% not 65%.
Revenue per-hundred weight went down but so did most costs with two exceptions, Purchase & Inter-Company.
So where ya getting your #'s.
Click to expand...

Don't you just hate it when people posts facts. :biglaugh:
 
You know what that 90 90 all your shippers are showing you really is. Since this is most likely the front line employee that showed you this paper and not the actual person who makes these decisions. Its a rate match offer it will tell you for various classes shipped said carrier will match the current discounted rate of 90% with a 90% of their own. This is why city drivers we still see all the same carriers hauling Mr customers freight. FXF and UPSGF for the non parcel freight carriers have been working on bundle pricing for several yrs where you trade off revenue between your divisions to provide customers with that ever coveted one stop shop for their transportation needs. So the more freight we haul cheaper than before gives the customers a better discount on Air and Ground needs the kicker is Fedex or UPS is still making money its just funneled through the Corp. In a non traditional manner. This is the reason Ground and Air profits and Market share is up while freight profit is down. Our salesman friend tried to explain this a while back but nobody wanted to hear the truth.
 
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