FedEx Freight cuts costs but improves profit as US LTL volumes shrink

  • Thread starter Journal of Commerce | Trucking Logistics › LTL
  • Start date
anyone know the O/R?
ST I don't need to butt in just trying to distinguish the difference between the O/R (operating ratio) which is sometimes confused with the O/M ( operating margin). So FedEx Freights operating margin for 3rd quarter 2023 was 17.7. If you take the margin and subtract it from 100 it will equal the approximate O/R which in this case would be 82.3. That means FedEx Freight is making about 18 cents on the dollar.

20 years ago a O/R of 95 or a O/M of 5.00 was considered excellent. FedEx Freight is crushing it as of late. I believe the only other LTL with better results is Old Dominion with a O/R in the mid to high 70s

If this was the 4th quarter with a margin of 17.7 we would have a max bonus payout again. Hope this helps and as Paul Harvey used to say "GOOD DAY" đź‘Ť $$$$$
 
It's legit. I understand that your trying to understand it but it's not one of the guys on here making it up. We got an operating margin of 17.7. Pretty wild considering q3 winter is always historically the worst quarter out there. Basically we can do below average in q4 which is historically one of the best quarters and still get max bonus come July. Pretty crazy
 
My point is that an OR is whatever the percentage of profit is minus 100. An OR is a percentage. I don’t doubt your statistic, it’s just calling that an OR is wrong. The OR for the example you posted would be correctly stated as an 82.3.

If the employees worked for free and the trucks ran on air, an OR of 17.7 might be possible.

BTW, an 82 is not a bad number.
I think think some carrier will eventually hit the 60s with a lot of help from robotic equipment. We'll be long gone when that happens.
 
I don’t think that’s possible.

And you can take the clown emoji and shove it.

I said, circus. Clowns frequent those. The emoji amused me. I was actually agreeing with you. Sorry if my humor offended you.
 
My point is that an OR is whatever the percentage of profit is minus 100. An OR is a percentage. I don’t doubt your statistic, it’s just calling that an OR is wrong. The OR for the example you posted would be correctly stated as an 82.3.

If the employees worked for free and the trucks ran on air, an OR of 17.7 might be possible.

BTW, an 82 is not a bad number.
Operating MARGIN vs operating RATIO.
 
My point is that an OR is whatever the percentage of profit is minus 100. An OR is a percentage. I don’t doubt your statistic, it’s just calling that an OR is wrong. The OR for the example you posted would be correctly stated as an 82.3.

If the employees worked for free and the trucks ran on air, an OR of 17.7 might be possible.

BTW, an 82 is not a bad number.
You mean they dont run on unicorn farts and rainbows?

The hell you say
 
I know the difference. I was posting about #7 and #8, that poster didn’t know the difference.
I know the difference. I worked for freight for 40 years. I just wanted to know the number because I couldn't find it in any of the press releases I found on google. I didn't object because your post was informative for any new people who don't know the difference.
 
I know the difference. I worked for freight for 40 years. I just wanted to know the number because I couldn't find it in any of the press releases I found on google. I didn't object because your post was informative for any new people who don't know the difference.
You have a much thicker skin than me! I was like, WTF?, over.
 
Top
AdBlock Detected