What makes FedEx Freight BETTER than UPS Freight?? - Page 2

SPACECADETwACDL · #7 (**permalink**) 11-01-2009, 11:04 PM

Red and white is right, blue and gray is gay.

BusterNite · #8 (**permalink**) 11-01-2009, 11:08 PM

Quote:

Originally Posted by River17

BusterNite

Like I said in a previous thread,
Viking used Overnite for a few years
to interline our eastbound freight.
And in the end we bought
American Freightways instead.
Don't you think that UPS would
be in a better position to compete
in the LTL freight business against
FedEx Freight and FedEx National LTL
if they had bought Conway and CFI??

Central States Pension Funds.

Rat · #9 (**permalink**) 11-01-2009, 11:10 PM

Quote:

Originally Posted by BusterNite

Oh boy!!! Where to start, Do you honestly believe that UPS did not do their home work before purchasing Overnite. Do you think that there was a reason that UPS paid above prime money for Overnite? Although UPS has made offers in the past for Overnite when Overnite was not ready to sell, there is much more to it. Yes, UPS was looking to get into the LtL business to compete with FedEx at the same time, UPS found a way to be much more competitive if they could buy their way out of the central states pension funds. UPS tried this in the past but the Teamsters would not allow it. Now with the purchase of Overnite, UPS worked the deal with the Teamsters. They got the LtL company with national coverage that they were looking for and at the same time got out of the Central states pension funds and the Teamsters (Hoffa) got what they wanted, Overnite 12,500 new members. UPS new exactly what they were doing when they purchased the 90 year old Overnite Transportation and they new exactly what they were in for. UPS has been transforming Overnite/UPSF into a UPS company for almost 5 years now and UPS will make it a very strong and sound company to compete with. Sounds like Rat did not have a clue!!!!!!! What makes it a better company? from my stand point, Better wages and benefits with the total respect of seniority.

It wasn't Overnite that wasn't ready to sell it was Union Pacific Railways that may have not been ready to sell. Still holding on to the hope of getting a foothold in the intermodal market...but like I said it didn't happen.

And I'll damn well guarantee you that it doesn't take five years for UPS to do anything once they have set their mind to it...that in itself is contradictory.

Rat

River17 · #10 (**permalink**) 11-01-2009, 11:11 PM

Quote:

Originally Posted by SPACECADETwACDL

Red and white is right, blue and gray is gay.

SPACECADETwACDL

But now they are brown and gray.

And the old Motor Cargo is blue and white.

Have you seen a set of UPSF triples going
down the road??
1st trailer is Overnite
2nd trailer is Motor Cargo
3rd trailer is UPS Freight.

Rat · #11 (**permalink**) 11-01-2009, 11:13 PM

Quote:

Originally Posted by Rat

Go read my last post here...and then we'll talk...

What is so good about working for FEDEX?

Rat

Better yet...here is a cut & paste

FedEx purchased American Freight Ways aka FedEx Freight and Watkins aka FedEx National...

Both damn good companies...highly recognizable. Profitability notwithstanding both were recognized as leaders in the business. FedEx took these companies and expanded their potential into what they have become today...both highly successful and reputable organizations with unquestioned brand recognition.

UPS bought Overnite. IIRC for an IPO from the Union Pacific Railroad of $100 million...a ridiculously low price for a national LTL carrier. UPS sniffed a bargain....what they didn't do is research their purchase. They were in such a hurry to compete with FedEx they bought the first thing that came along.

Union Pacific purchased Overnite in 1986 in hopes of competing with Norfolk Southern Railways for the intermodal business...it didn't happen. NS has commanded the intermodal market for years with their Triple Crown division...of which they have a stranglehold in the rust belt. Even CSX won't try to compete in this market as they know there is no chance of success.

Union Pacific and Burlington Northern Sante Fe Railways (UP & BNSF respectively) are the rail carriers in the west. Problem is there isn't much in the way of industrial centers in the west to justify such an aquisition...thus the desire to overtake the NS market...and as I have said...it wasn't going to happen.

Both railways are unionized and the IBT tried desperately to unionize Overnite. UP eventually closed some Overnite terminals and severely reduced its footprint. Organizational troubles abounded.

UP put no money or support behind Overnite. They left them to a do or die scenario...fly or die

UP no longer wanted Overnite...so what to do?...lets find a sucker to sell it to.

What can Brown Do for You?

UPS wanted desperately to get into the LTL business to compete with FedEx. Rumor has it they offered to buy Con-Way and Estes but didn't like the price. They found a bargain in Overnite and bought sight unseen thinking they could apply the UPS business model to them...didn't happen.

UPS was ill prepared for the idiosyncrasis of the LTL business...nor were they prepared for the level of competion they were to face. Afterall they commanded the package business for years unabated save for that unabashed start up FedEx.

Fred Smith & Co was smart enough to allow those peeps running their purchased enterprises to continue until they understood the workings of the LTL business...UPS didn't.

FedEx has always been of a diversified mind which has allowed them to be highly successful in the LTL business.

UPS only thinks package.

Rat

River17 · #12 (**permalink**) 11-01-2009, 11:15 PM

Quote:

Originally Posted by Rat

It wasn't Overnite that wasn't ready to sell it was Union Pacific Railways that may have not been ready to sell. Still holding on to the hope of getting a foothold in the intermodal market...but like I said it didn't happen.

And I'll damn well guarantee you that it doesn't take five years for UPS to do anything once they have set their mind to it...that in itself is contradictory.

Rat

Rat

But since this recession officially
started in December 2007 many
carriers have slowed down and even
frozen any capital expenditures in
order to cut fixed costs.