Parcel shipping/LTL: USPS market test could add a new player for LTL-like services

[Jeff]

Parcel shipping/LTL: USPS market test could add a new player for LTL-like services - 4/2/2009 - Logistics Management

[Comftblynumb]

Very interesting. LTL is wildly competative and here comes a new player. I wonder if the USPS is more interested in selling the empty space on it's linehaul trailers to existing LTL carriers seeing how they won't be going "door to door". Deals could be easily cut with existing LTL's to provide delivery from the service centers and bulk mail facilities in exchange for cheap linehaul miles.

Also, something like this could flood the market with small fleets and owner op's like when Home Depot first subcontracted out thier local deliveries before Cardinal took over. Work for cheap in a 20 mile radius of a post office.

Could be very interesting. Either it will radically change the LTL market as we know it or crash and burn like the Hindenburg.

[Guardrail]

The USPS does not own a fleet of trucks, rather they rely on contract carriers to move the mail. I wouldn't be too worried about them taking our freight. I can't even get the right mail half the time. What will Caterpiller do when it gets a shipment of baby diapers?

[Comftblynumb]

The point is that these contractors have space available for some skids. Bulk mail facilities have dock space. I'm a line haul driver for an LTL and the concern I have is loss of linehaul miles. Much like the rail. I'm not THAT concerned because it can't have too much capacity but they are trying to better compete with the package/freight companies more than us. I just keep trying to watch for the dreaded schrapnel.

[UPSFreightDUI'd]

I wonder how their gonna handle the whole getting the freight to and from the BMC's? The article stated use of third parties and it said in the article this is gonna pose an issue. I think security will be a huge issue, I'm sure their will also be guidelines on what can be shipped, oversize freight, hazmat, etc. Whenever I have a delivery at the local BMC, I have to have a reservation number, my PVDS (Plant Verified Drop Shipment) paperwork, then have to wait to be unloaded. At times it becomes a headache trying to get unloaded, especially with other OTR and LTL drivers there as well. All in all, it seems like a good idea, in order to fill capacity. USPS has at times tried new ways to move mail, used to use boxcars on Amtrak trains, but that was eliminated...