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FedEx Freight | UPS Freight warns shippers to brace for possible freight strike

Redracer3136 said:
It was explained to us once that FXExpress represented the oversized deep fried turkey that sat in the middle of the Thanksgiving dinner table, FXGround represented the stuffing, dressing, and all of the fixings surrounding the turkey, and FXFreight was that small dish of cranberry sauce that sat on the corner of the table....in UPS’s world, Parcel represents the whole Thanksgiving dinner table while UPSFreight is nothing more than the condiments that sit over on the counter!!

There’s a reason UPS made UPSF a final offer contract this quickly....just sayin’
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This is unfortunately correct.

Ups is only going to be pushed so far.
The argument is "Yeah, but, but UPS wants to offer all forms of service!"

Yeah, and they can sub out EVERY SINGLE ASPECT of UPSF's work.
With minimal cost, no threat of strikes ever again.


Customers care about 2 things.
Cost
Service



What name that appears on the side of the truck that delivers/ships their freight doesn't even make the Top 10.
 
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No F-bdy Bs said:
This is unfortunately correct.

Ups is only going to be pushed so far.
The argument is "Yeah, but, but UPS wants to offer all forms of service!"

Yeah, and they can sub out EVERY SINGLE ASPECT of UPSF's work.
With minimal cost, no threat of strikes ever again.


Customers care about 2 things.
Cost
Service



What name that appears on the side of the truck that delivers/ships their freight doesn't even make the Top 10.
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The reality is UPS purchased Overnite/UPSF in order to offer them up as a pawn to exit the CSPF...mission accomplished. They’ve made no real attempts at trying to expand UPSF’s market share and my guess is that UPS doesn’t care either way.
 
Redracer3136 said:
The reality is UPS purchased Overnite/UPSF in order to offer them up as a pawn to exit the CSPF...mission accomplished. They’ve made no real attempts at trying to expand UPSF’s market share and my guess is that UPS doesn’t care either way.
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Seems to be the case.
I have a lifetime buddy that's been with them since the Overnite acquisition.
He has often told me that no manager he's ever been under, has EVER been interested in acquiring new business, or drivers getting extra shipments.
 
BIG R GUY said:
I agree with your post, Swamp, except for the last sentence. Because you know yourself, many LTL companies pay drivers in cities like Chicago, or New York more than ones 150 miles from there out in the rural areas. They use the cost of living crap as an excuse for doing it. I say it is 2 things. Helps keep the union threat at bay, and when there are few jobs of this type available in rural areas, they can really be choosy with hiring, and hourly pay,but yes, the same qualifications, and expectations are the same....
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Oh, I agree. But that is more of a geographic MARKET driven thing. The pool of skilled drivers available, and the competitive wage expected, are what drives the wage, IMHO. Not the size or profit margin of the company, in general.
 
No F-bdy Bs said:
This is unfortunately correct.
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Actually, it's not entirely correct,

Just because one op-co is more profitable (by scale or O/R), that does NOT dictate a better deal, in terms of wages/benefits/conditions. It's more about the ability to hire qualified workers "willing" to do it.

Example: Express is the big dog in our Corp. world. Class A CDL drivers make a "similar" wage. Yeah Express offers a higher potential top scale, but more hoops to jump through to get there. Still, they are within a zone of reasonableness.

BUT, when we look deeper, comparing dock workers/package handlers (whatever Express or Ground calls their's), we see that the "theory" falls apart. Big time. Freight dock workers make significantly more. Why? Because of the required skill level, and the number of qualified and engaged applicants.


The Thanks Giving dinner example implies that the Company may be willing to let em walk, for a while, to make a point. Fair enough, BUT they will risk losing those drivers and customers, to other companies. The market to replace drivers is not cheap or easy, which brings us back to the competitive market side of the topic.

We'll see how it goes, long term...
 
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Indeed will be interesting to see how this plays out.
I think UPS needs freight as a total value prop to customers so they might not have the upper hand.
The damage has already been done and will hurt both sides for a while. Lost revenue and work.
 
Crazy Trucker said:
Never heard that one....
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That is also true where i am at as well. We will not sacrifice our customers for UPSF customers. If were able to handle more freight in that lane then we will do it. We were told that if there is any extra freight that we normally dont pick up we must call dispatch.
 
tread said:
Indeed will be interesting to see how this plays out.
I think UPS needs freight as a total value prop to customers so they might not have the upper hand.
The damage has already been done and will hurt both sides for a while. Lost revenue and work.
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::shit:: will really get real if the strike goes on for awhile cause when no paycheck is coming in they will start eating there young. Thing will get very interesting then let alone pissing alot of customers off that might just come our way eventually.
 
soochee64 said:
That is also true where i am at as well. We will not sacrifice our customers for UPSF customers. If were able to handle more freight in that lane then we will do it. We were told that if there is any extra freight that we normally dont pick up we must call dispatch.
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I find that interesting. What's the reason we can't handle more freight?
 
soochee64 said:
That is also true where i am at as well. We will not sacrifice our customers for UPSF customers. If were able to handle more freight in that lane then we will do it. We were told that if there is any extra freight that we normally dont pick up we must call dispatch.
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SO, the "just one more program" is "officially" placed on pause? Some have been wondering about that anyway. Or is it just so called UPSF customers we (supposedly) won't accept? I expect we'll hear more on this very soon.

:popcorn:
 
Crazy Trucker said:
I find that interesting. What's the reason we can't handle more freight?
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All they said was we will pick up our customers freight first as priority and if we have room we will pick up more. They said if certain customers are now asking us to pick up UPSF freight call dispatch.
 
SwampRatt said:
I'm thinking... Short on drivers, Short on equipment = Short on Capacity. Can't say for certain though.
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I figure something along those lines. I bet they could fix the short on driver part. If we had better insurance, retirement, and drop the gpd down to 2 different pay scales. Guarentee if we had the best of the best they wouldn't have to worry about being short on drivers.
 
Clandestine_ice said:
If be pissed too if I worked there. Freight and Feeders should be paid the same unless you can give a valid reason why they shouldn’t.
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Freight and package are not the same business. The profit margin is a whole lot higher in package than it is in freight. UPS can afford to pay the package guys more than the freight guys because the package guys make more money for the company.
 
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