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TForce | 2023 Contract negotiations.

"Tomé said that UPS Freight employees should also be happy to join a company that’s more aligned with their interests than was UPS, a parcel-delivery-focused concern that positioned UPS Freight as a loss leader by offering cut-rate prices in exchange for more small-package business.

“We couldn’t be happier” with the way the transaction turned out, Tomé said."
 
steve5 said:
"Tomé said that UPS Freight employees should also be happy to join a company that’s more aligned with their interests than was UPS, a parcel-delivery-focused concern that positioned UPS Freight as a loss leader by offering cut-rate prices in exchange for more small-package business.

“We couldn’t be happier” with the way the transaction turned out, Tomé said."
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Below is the rest of the quote, no where does she mention hauling business at a purposeful loss. UPS makes 25-30 cents on the dollar, UPS Freight historically was making 3-5 cents on the dollar. She called it a low margin business and LTL is low margin compared to the parcel industy. The biggest mistake UPS ever did was allow UPS Freight to unionize.

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UPS Inc.'s (NYSE:UPS) sale of its less-than-truckload business, UPS Freight, to Canadian firm TFI International Inc. (NYSE:TFII) works out well for both parties as it relieves UPS of a noncore, low-margin asset and puts the business in the hands of a more freight-centric carrier, UPS CEO Carol Tomé said Tuesday.

The $800 million all-cash deal, which was announced last week, is expected to close at the start of the second quarter, Tomé (pictured) told analysts on a conference call Tuesday to discuss UPS' fourth-quarter and full-year results. UPS will use the proceeds to pay down debt, she said. Montreal-based TFI will rebrand the unit as TForce Freight. UPS will sell the new TFI service for no less than five years and will provide back-office services for three years. All 14,500 UPS Freight employees, including 11,500 Teamsters union members, will join TFI.

Tomé said she made the disposal of UPS Freight a top priority as soon as she started the job on June 1. Tomé, who was named to UPS' board in 2003, watched as UPS acquired Overnite Transportation Co., the forerunner of UPS Freight, two years later for the then-lofty price of $1.25 billion, only to take an impairment charge shortly after the acquisition was completed.

"It's never turned out to be what we thought it would be," she said, referring to UPS Freight. "It's a capital-intensive, low-margin business that we don't need to own" to make money by offering an LTL solution to shippers, she said.
 
No matter what you say, UPS wanted it Union for a reason. And they got what they wanted, and failed at LTL. MISERABLY. Truck Leasing, Failed. The only thing they can do is parcel. And they don't do that very well either. Amazon delivered on time, USPS delivered 1-2 days early consistently, UPS, i still havent received 2 packages, and that's something normal for them.

Unionizing had nothing to do with UPS' failure with LTL. They just cant do anything but Parcel... thats it. Now we need to cut the UPS cancer out of management if this company is going to have a chance to be a competitive LTL carrier again, like it once was before 2006.
 
stunhsif said:
Below is the rest of the quote, no where does she mention hauling business at a purposeful loss. UPS makes 25-30 cents on the dollar, UPS Freight historically was making 3-5 cents on the dollar. She called it a low margin business and LTL is low margin compared to the parcel industy. The biggest mistake UPS ever did was allow UPS Freight to unionize.

"
UPS Inc.'s (NYSE:UPS) sale of its less-than-truckload business, UPS Freight, to Canadian firm TFI International Inc. (NYSE:TFII) works out well for both parties as it relieves UPS of a noncore, low-margin asset and puts the business in the hands of a more freight-centric carrier, UPS CEO Carol Tomé said Tuesday.

The $800 million all-cash deal, turned out to be what we thought it would be," she said, referring to UPS Freight. "It's a capital-intensive, low-margin business that we don't need to own" to make money by offering an LTL solution to shippers, she said.
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So the quote says it was a loss leader, and you say it wasn't "purposeful loss"..... what do you think happens when you give 90% discounts to your customers to get their parcel freight? While you may not be trying to lose money, you know that will be the end result, especially in an already low margin business.....here is a definition of loss leader for you since you don't comprehend the definition...

corporatefinanceinstitute.com

Loss Leader Pricing

A loss leader pricing strategy, a term common in marketing, refers to an aggressive pricing strategy in which a store prices its goods below cost to
corporatefinanceinstitute.com corporatefinanceinstitute.com
 
Ups priced a certain fitness equipment shipper at $125 per pallet. The length, weight, residential and lift gate charges waived. They gave them freight space at a loss for all the package business. Haven't seen that much freight from them since the ups discount expired.
 
No port said:
Ups priced a certain fitness equipment shipper at $125 per pallet. The length, weight, residential and lift gate charges waived. They gave them freight space at a loss for all the package business. Haven't seen that much freight from them since the ups discount expired.
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we have another fitness equip company, with the same looking pallets that took over for that acct... i wonder
 
ABF381 said:
So the quote says it was a loss leader, and you say it wasn't "purposeful loss"..... what do you think happens when you give 90% discounts to your customers to get their parcel freight? While you may not be trying to lose money, you know that will be the end result, especially in an already low margin business.....here is a definition of loss leader for you since you don't comprehend the definition...

corporatefinanceinstitute.com

Loss Leader Pricing

A loss leader pricing strategy, a term common in marketing, refers to an aggressive pricing strategy in which a store prices its goods below cost to
corporatefinanceinstitute.com corporatefinanceinstitute.com
Click to expand...
stunhsif and UPS can kick rocks... and Tome... and the horse...
 
steve5 said:
stunhsif and UPS can kick rocks... and Tome... and the horse...
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tell me how much experience you have with the carriers rating processes, rate bases, class structure ( FAK or no FAK), yearly or twice yearly rate increases, customer contracts, etc? Probably none I would guess. Tome came over from HD and had no experience whatsoever in the transportation arena. UPS jettisoned UPS Freight because LTL is a low margin business whether you are UPS Freight, SAIA or any of the others. UPS decided it was time to jettison low margin business and concentrate on saving their own @ss down the road from being swallowed up by the big fish Amazon. Either FedEx or UPS is going to be taken over by Amazon within the next ten years, my guess is it won't be UPS.
 
stunhsif said:
tell me how much experience you have with the carriers rating processes, rate bases, class structure ( FAK or no FAK), yearly or twice yearly rate increases, customer contracts, etc? Probably none I would guess. Tome came over from HD and had no experience whatsoever in the transportation arena. UPS jettisoned UPS Freight because LTL is a low margin business whether you are UPS Freight, SAIA or any of the others. UPS decided it was time to jettison low margin business and concentrate on saving their own @ss down the road from being swallowed up by the big fish Amazon. Either FedEx or UPS is going to be taken over by Amazon within the next ten years, my guess is it won't be UPS.
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Hey Professor, why would i need to have experience in any of that to know that UPS needs to go? And Tome has been on the board since before there was a UPS Freight. SO she had plenty of time, 17 years to learn about the transportation industry And its a low margin business compared to UPS' standards. And no Tome decided to get rid of UPSF Because she was against the whole plan from the begining, and the fact UPS is a FAILURE at everything but packages. And Amazon probably wont be taking over UPS because FedEx is the total package. And successful where UPS Failed.

So, again... Kick Rocks

Oh BTW, my 2 Packages shipped thru UPS Have been lost and unrecoverable. What does your rating process, rate base,and class structure say about that?
 
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