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FedEx combining main units — except LTL — into 1 organization

mattbob said:
makes it easier to sell freight. just sayin
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Possibly,
My question is always
Why would Fx sell Freight? They're consistently highly profitable.

Also, who would buy them? Amazon has zero desire, and those with the desire don't have the liquid.

Look at the wording
"FedEx Freight will continue to provide freight transportation services as a stand-alone company under the Federal Express Corp banner, the company added."

",, as a stand alone company,, UNDER the Federal Express corp banner".




I'm not saying a sale isn't possible, I just see it as an illogical move for Fx. They need an LtL option for customers. FxF is highly profitable, and has remained so while E and G's performance has lagged badly.
 
No F-bdy Bs said:
Possibly,
My question is always
Why would Fx sell Freight? They're consistently highly profitable.

Also, who would buy them? Amazon has zero desire, and those with the desire don't have the liquid.

Look at the wording
"FedEx Freight will continue to provide freight transportation services as a stand-alone company under the Federal Express Corp banner, the company added."

",, as a stand alone company,, UNDER the Federal Express corp banner".




I'm not saying a sale isn't possible, I just see it as an illogical move for Fx. They need an LtL option for customers. FxF is highly profitable, and has remained so while E and G's performance has lagged badly.
Click to expand...
Nobody thought UPS would sell their LTL. Guess the LTL option wasn't that important to their customers or UPS.

IMO now is the perfect time. We are profitable in a down economy, and give the liquid to complete restructuring of FedEx Express and Ground.

Honestly I've been in LTL for over 25 years. Package is where the money is at. You get alot more revenue on a package trailer than a LTL.

That's why UPS PARCELL make almost a dollar a mile. Even with a union if the revenue wasn't there UPS wouldn't/couldn't pay that.
 
We all know we can’t just believe anything but I do agree that a sale of LTL isn’t in the plan at least for the next couple years.. as stated before by someone Fedex needs that LTL offering and it was kinda touched on

“Though LTL was not part of the consolidation, company executives remain adamant about its role at the company. Subramaniam said it was a vital part of the business. Brie Carere, who oversees all customer-related functions, said FedEx is the only major carrier that offers a parcel-LTL package, which makes it very sticky to many shippers.”
 
nasvegas said:
Nobody thought UPS would sell their LTL. Guess the LTL option wasn't that important to their customers or UPS.

IMO now is the perfect time. We are profitable in a down economy, and give the liquid to complete restructuring of FedEx Express and Ground.

Honestly I've been in LTL for over 25 years. Package is where the money is at. You get alot more revenue on a package trailer than a LTL.

That's why UPS PARCELL make almost a dollar a mile. Even with a union if the revenue wasn't there UPS wouldn't/couldn't pay that.
Click to expand...
UPSF never drew any water, nor ever really got on its feet. It wasn't a sliver of their portfolio. They lost nothing by selling them.


Freight, by comparison is massive. I don't think Fx wants to give away that service. It helps the other divisions as well. Especially if G and E can clean their act up. Fx emerges as the premier, one stop shopping option for cusromers.
 
No F-bdy Bs said:
UPSF never drew any water, nor ever really got on its feet. It wasn't a sliver of their portfolio. They lost nothing by selling them.


Freight, by comparison is massive. I don't think Fx wants to give away that service. It helps the other divisions as well. Especially if G and E can clean their act up. Fx emerges as the premier, one stop shopping option for cusromers.
Click to expand...
Great points. I guess only time will tell.
 
Road_Warrior1 said:
We all know we can’t just believe anything but I do agree that a sale of LTL isn’t in the plan at least for the next couple years.. as stated before by someone Fedex needs that LTL offering and it was kinda touched on

“Though LTL was not part of the consolidation, company executives remain adamant about its role at the company. Subramaniam said it was a vital part of the business. Brie Carere, who oversees all customer-related functions, said FedEx is the only major carrier that offers a parcel-LTL package, which makes it very sticky to many shippers.”
Click to expand...
Brie could like, stop saying “sticky”, like, totally. OMG.
 
nasvegas said:
Nobody thought UPS would sell their LTL. Guess the LTL option wasn't that important to their customers or UPS.

IMO now is the perfect time. We are profitable in a down economy, and give the liquid to complete restructuring of FedEx Express and Ground.

Honestly I've been in LTL for over 25 years. Package is where the money is at. You get alot more revenue on a package trailer than a LTL.

That's why UPS PARCELL make almost a dollar a mile. Even with a union if the revenue wasn't there UPS wouldn't/couldn't pay that.
Click to expand...
UPS used freight as a Loss/Leader. Guess they became tired of explaining to stockholders why they couldn't turn a profit in ltl.
 
nasvegas said:
Nobody thought UPS would sell their LTL. Guess the LTL option wasn't that important to their customers or UPS.

IMO now is the perfect time. We are profitable in a down economy, and give the liquid to complete restructuring of FedEx Express and Ground.

Honestly I've been in LTL for over 25 years. Package is where the money is at. You get alot more revenue on a package trailer than a LTL.

That's why UPS PARCELL make almost a dollar a mile. Even with a union if the revenue wasn't there UPS wouldn't/couldn't pay that.
Click to expand...
UPS selling freight wasn’t even a big deal. They never invested in it or grew it. It’s apples and potatoes.
 
mattbob said:
makes it easier to sell freight. just sayin
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Ground and Express are essentially the same. Both are package businesses. It makes perfect sense to merge them to reduce redundancy and costs.
Sounds a lot like One Yellow doesn't it.
FedEx Freight is an entirely different concept and business model. Freight just doesn't fit into the Express and Ground business plan and should remain separate.
 
www.freightwaves.com

1 analyst cautious, 1 optimistic following One FedEx announcement

UBS’ Tom Wadewitz says more clarity on cost-cutting actions provides a “long runway” for stock.
www.freightwaves.com www.freightwaves.com

“FedEx Freight, the company’s LTL operation, will remain a stand-alone entity and sell services as usual. Shanker called the announcement “meaningful” in that it may be a setup to sell or spin off the business.
However, he thought that to be doubtful because it is too heavily embedded in the rest of the company”
 
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