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FedEx Freight | CEO Raj Subramaniam in a letter to staff.

Citori_cx said:
Fact of the matter when it comes to fast e commerce or commerce in general Amazon is truly amazing. Why go to the store when you can have whatever on your doorstep the next day. Looking like fedex giving Amazon the double barreled family friendly middle finger salute was probably a huge mistake that has cost them and will continue to cost them as more and more people order from them.
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What?

You really have no clue what you're talking about.
Fx backing away from Amazon is one of the smartest decisions they've ever made.
 
Streaker69 said:
I disagree. FedEx telling Amazon to bug off made plenty of sense when they did it and it still does. Amazon's intention was to have FedEx deliver the stuff they couldn't while they built their shipping network. At that moment, FedEx saw them as threat (rightfully so) and decided not to help them grow. Instead, FedEx linked up with Walmart and ships their packages in 2 days.

There was no upside to FedEx staying in the Amazon business.
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I'm with you Streak.

FedEx is wise, when it comes to (avoiding) committing TOO much to ANY single entity. They did the same long ago with customers like WalMart & Michelin. Those big customer will continue to squeeze, knowing most cannot afford to lose them - once you've geared up for their volume. Working harder for less (near break even) is NOT a good plan.

In the case of Amazon, FedEx claims to be more focused on working with EVERYONE else, who competes with Amazon. That certainly has played well for Freight, in terms of operating ratio/margin.
 
Streaker69 said:
A lot of mixed messages coming from ODFL. They're expecting to be slammed, but they're terminating drivers. That may have worked some years ago, but the world is a much smaller place today. Anybody doing due diligence before applying for a job will see how they treated employees during harder times.
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As well as see FXF! How the lied and miss treated employees for years. Except during union campaign.....
 
Streaker69 said:
I disagree. FedEx telling Amazon to bug off made plenty of sense when they did it and it still does. Amazon's intention was to have FedEx deliver the stuff they couldn't while they built their shipping network. At that moment, FedEx saw them as threat (rightfully so) and decided not to help them grow. Instead, FedEx linked up with Walmart and ships their packages in 2 days.

There was no upside to FedEx staying in the Amazon business.
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Accept for that billions in revenue that would really help right now. They were going to wipe the table with our ass either way. Take what you can get it a ::shit:: economy.
 
Citori_cx said:
Accept for that billions in revenue that would really help right now. They were going to wipe the table with our ass either way. Take what you can get it a **** economy.
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FedEx wouldn't gain billions in revenues. They'd be left holding the bag and getting the bad press. When Amazon starts shipping stuff that isn't coming from their warehouse, I'll be a little concerned.
 
No F-bdy Bs said:
What?

You really have no clue what you're talking about.
Fx backing away from Amazon is one of the smartest decisions they've ever made.
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Disagree….the billions would have greatly helped. They were going to kick our ass either way. News flash they are right now. It’s why fedex business is sheeeot. It was done out of more principle than anything. You can have that standpoint I get it but in the real world picture what good did it do fedex ? Nothing is the answer to that. I don’t know I guess the end point is the same under either model. Just would be nice to have some extra business right now.
 
Streaker69 said:
FedEx wouldn't gain billions in revenues. They'd be left holding the bag and getting the bad press. When Amazon starts shipping stuff that isn't coming from their warehouse, I'll be a little concerned.
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Yes it was a crap load of money they were getting from their goods. They stated what a small percentage of overall revenue it was which was true but it was a large sum. I get that it was a bad business decision to help a company that was going to be a major competitor. Just seems sometimes turning down business isn’t sound for the times. Currently freight uses a formula based on inbound shipments that determines the number of city drivers they use for the day. Often this formula has our center unable to do pick ups. That leaves freight for competitors. I guess I have to believe that overall for the company this forumal makes sense and every center isn’t like ours. Just seems silly to leave pick ups behind because they couldn’t put one more guy on the board to get the extra ones.
 
Citori_cx said:
Accept for that billions in revenue that would really help right now. They were going to wipe the table with our ass either way. Take what you can get it a **** economy.
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Probably best if you stopped commenting on this subject. There is no billions of revenue to be had.


There would, however, be hundreds of millions in infrastructure, vehicles, leases and other supporting aspects to maintain if Fx was still in bed with Amazon.
Do you have any concept of the size Fx needed to be to accommodate all the extra Amazon freight? The additional warehouses, drivers and vehicles?

Ok, let's assume they built all that to accommodate 1 customer.
Amazon always said it wanted its own delivery service, so what happens as Amazon transitions away from Fx UPS, ect?


Fx would be stuck holding hundreds of millions in unneeded supporting infrastructure,along with the personnel to man it.
Little tip: There would be more than a few layoffs.



Keep holding the steering wheel, and stay in your lane.
 
No F-bdy Bs said:
Probably best if you stopped commenting on this subject. There is no billions of revenue to be had.


There would, however, be hundreds of millions in infrastructure, vehicles, leases and other supporting aspects to maintain if Fx was still in bed with Amazon.
Do you have any concept of the size Fx needed to be to accommodate all the extra Amazon freight? The additional warehouses, drivers and vehicles?

Ok, let's assume they built all that to accommodate 1 customer.
Amazon always said it wanted its own delivery service, so what happens as Amazon transitions away from Fx UPS, ect?


Fx would be stuck holding hundreds of millions in unneeded supporting infrastructure,along with the personnel to man it.
Little tip: There would be more than
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I will just choose to put you on ignore as you are kind of a dick. I wasn’t talking about going to bed with them on that level. Just having them as a customer like any other and hauling what we could. Good day good riddance.
 
No F-bdy Bs said:
No F-bdy Bs said:
Fx would be stuck holding hundreds of millions in unneeded supporting infrastructure, along with the personnel to man it.
Little tip: There would be more than a few layoffs.
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Been in trucking for 25 plus years, seen more than a couple of trucking companies go out of business because of their largest shipper left the market. (Went under, was sold, changed carriers, etc.).
 
Streaker69 said:
FedEx wouldn't gain billions in revenues. They'd be left holding the bag and getting the bad press. When Amazon starts shipping stuff that isn't coming from their warehouse, I'll be a little concerned.
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Ask the drivers at NEMF what happened to them when their 2 biggest customers were Amazon and Home Depot. Yes Fedex Ground was taking in tons of money on Amazon, but making little profit on that money. Amazon is bleeding money on their Retail division- they lost 6 Billion( yes Billion) in a quarter. If it was not for the Tech side that would have been double or triple. They are letting leases expire on whs, not opening new ones, they laid of 12000 people or more. They are completely looking at how to cut expenses now. There is a possible SEC probe now going on at Amazon. I would bet UPS is looking at getting rid of them also but not publicly yet. Amazon has already said they cant del all their own stuff without USPS and UPS and they probably will never. And yes- I am as Anti-Amazon as you can get- have never ordered from them and have no intention to ever use them.
 
we ditched amazon on the freight side because they refused to pay their bills.

last I remember they owed us somewhere around $200k in charges that they refused to pay, then they lost their credit with us and were forced prepaid only, then we eventually just stopped shipping their ::shit::.

not to mention sitting a city driver there for 5 hours+ really wasn't profitable. there was a few times the police had to be called in order for our driver to get released.
 
There is no reason, even billions of revenue, to handle freight at break even or a loss. That’s just salesman’s talk. The explanation that it enables load factor for linehaul, is bogus, a loss is a loss. Ask YRC how that’s working out for them.
 
ltltrkr said:
Ask the drivers at NEMF what happened to them when their 2 biggest customers were Amazon and Home Depot. Yes Fedex Ground was taking in tons of money on Amazon, but making little profit on that money. Amazon is bleeding money on their Retail division- they lost 6 Billion( yes Billion) in a quarter. If it was not for the Tech side that would have been double or triple. They are letting leases expire on whs, not opening new ones, they laid of 12000 people or more. They are completely looking at how to cut expenses now. There is a possible SEC probe now going on at Amazon. I would bet UPS is looking at getting rid of them also but not publicly yet. Amazon has already said they cant del all their own stuff without USPS and UPS and they probably will never. And yes- I am as Anti-Amazon as you can get- have never ordered from them and have no intention to ever use them.
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Think you quoted the wrong person here, but I agree with everything you said.
 
Citori_cx said:
Fact of the matter when it comes to fast e commerce or commerce in general Amazon is truly amazing. Why go to the store when you can have whatever on your doorstep the next day. Looking like fedex giving Amazon the double barreled family friendly middle finger salute was probably a huge mistake that has cost them and will continue to cost them as more and more people order from them.
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Their drivers also drive like idiots. Twice this past week I was almost hit on I-70 . Leaving little room as they cut you off weaving in and out of traffic …
 
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