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FedEx Freight | Fedex Will Either Be Acquired Or Lose An Additional 40%+ In Value

"THETRUTH" said:
If FedEx and UPS would of signed a long term contact with Amazon instead of kissing their Ass problem would of been solved. Now FedEx needs to pick up it's game.
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FedEx (and AF, back in the day) have walked away from "big time" customers, who's freight was not really profitable. Wal-mart and Michelin come to mind, in my neck of the woods. Profits rebounded nicely with "better" freight, in no time at all.

I think it's wise to never become a slave to your biggest customer. Even though Amazon never was (yet), they were making life difficult for us to do business with them. "Freight" seems more profitable with less AMZN. Ground and Express are hurting though, in part from the loss of that volume.
 
daddy o said:
Really!! No major trucking company that’s worth anything and pays their drivers a decent wage wants to do business with amazon! Od xpo fedex ups how’s that working out? Detention of drivers, detention of company equipment, big money loser! Why do you think they have all these people driving their own vehicles making deliveries for what you could make at McDonald’s! Answer because amazon is the 800lb gorilla in the room, and they don’t want to pay the shipping costs and detention pay that the major trucking companies charge! What kinda of contract was ups or Fedex or xpo supposed to sign with amazon? If there was a good contract on the table don’t you think ups xpo or fedex would be shipping for amazon this very day? If you think there is money to be made hauling for amazon go buy yourself a tractor and pull their trailers! In a few years as they drive prices down further and erode the market with cheap labor don’t be surprised when you can’t put food on the table you tractor is falling apart and your heading to bankruptcy court!
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Wonderful post!!!! according to our management amazon approached the freight division in KC wanting to know how much of their business FedEx wanted. they asked amazon what kind of commitment and they said between 6 and 22 trailers per day. they had no specific amount so FedEx told them to buzz off. weren't gonna hire enough man power to do the max and leave people sit the next day. Best call I've seen them make! we got along fine before them and we will after.
 
No F-bdy Bs said:
I dont see FxF being sold, unless FX as a WHOLE is sold, and it's part of the "package"


FxF has wayyy too much overhead, and is too diverse for a buyer that wants a ltl company. Southwestern, OD, and a few others would be more viable, cheaper, and more profitable options.
FxF (and Fx as a whole) try to be all things, to all things.
OD, by comparison, skips the BS, and JUST SHIPS FREIGHT. Huge reason they're kicking ass right now. They found a simple business model, and stuck to it.



But remember this.
Fx is NOT a shipping company .
They are an INVESTMENT COMPANY, that happens to ship freight,,,, and right now, the investors are NOT happy.
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Many of the disgruntled investors want layoffs/reduced capacity, for the sake of margins (dividends). So far, FDX has resisted that temptation, beyond targeted reductions in the air fleet. We should be glad. Glad too that Fred Smith stated that resistance in the earnings call.

Any takeover would lead to cuts (to the bone) for short term gain. Future be damned. We've been down that road before, and it's consequences were not pretty.
 
SwampRatt said:
FedEx (and AF, back in the day) have walked away from "big time" customers, who's freight was not really profitable. Wal-mart and Michelin come to mind, in my neck of the woods. Profits rebounded nicely with "better" freight, in no time at all.

I think it's wise to never become a slave to your biggest customer. Even though Amazon never was (yet), they were making life difficult for us to do business with them. "Freight" seems more profitable with less AMZN. Ground and Express are hurting though, in part from the loss of that volume.
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I wasn't talking about ltl.
 
SwampRatt said:
Many of the disgruntled investors want layoffs/reduced capacity, for the sake of margins (dividends). So far, FDX has resisted that temptation, beyond targeted reductions in the air fleet. We should be glad. Glad too that Fred Smith stated that resistance in the earnings call.

Any takeover would lead to cuts (to the bone) for short term gain. Future be damned. We've been down that road before, and it's consequences were not pretty.
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100% agree.

No company has EVER absorbed another, and made things better.
The first step, before ink is dry, is to trim fat.
 
"THETRUTH" said:
Wow! Should call you angry daddy o .... Amazon needed FedEx and UPS for all their delivery's. They were looking at short term profit not long term. A good contract might of slowed down Amazon from building it's delivery service. " MIGHT OF" no telling. And all that other BLA,BLA,BLA, .. About buying your own tractor. Think it's time to take your meds!
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yeah a good contract amazon was willing to sign! Which they weren’t! Fred smith reported that they could not reach an agreement and fedex isn’t the only one, amazon wants there packages delivered for pennies their money for nothing and their chicks for free!!
 
"THETRUTH" said:
I wasn't talking about ltl.
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Fair enough. The "challenges" there are real, but according to the reports (some of it obviously spin):

Express is effected by international trade relationships being re-negotiated. That, when done, will bring back their margins, IMHO, as well as push FXFE volumes back up. The effect of the TNT acquisition, while self inflicted, are expected to pay dividends long term. Who knows for sure?

At Ground, the short term costs associated with upgrades to efficiently handling larger packages, and the bump to 7 days service, added cost - without revenue (during this quarter). Cutting out the post office (SmartPost), doing those in-house, and the massive efficiency (automation) improvements are all likely to put them back on track to margins in the mid teens.

Personally, I think Express struggles are real, but temporary and necessary for the long term strength of the Company & the Country.

Ground? Just fine, but spending a lot to upgrade. Downsides being overplayed, IMHO.

All of the above, despite the loss of Amazon, IMHO.
 
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Hoot Owl said:
Instead of spending over 14 billion buying back stock since 2014 and hacking and slashing our medical benefits to pieces perhaps they should look at something other than the employees to trim on... just an idea...
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Absolutely fair point.

Again, I think the other opp-co challenges are being overplayed. The newer decision makers at Freight wanting to show an impact for "FedEx Corporation". Taking one for the team"?

Does anyone think that when things return to "fat and happy" at the other opp-cos, we at Freight will be remembered, as part of the bigger team? Or will we return to a stand alone entity, while the sacrifices made remain?
 
Buyout ??? Never say Never , just look at the what happened with YRCW & Roadway & USF Holland & Reddway & Dugan and he with the most money wins !!! Good Luck & Change is in the wind !!!
 
s pruitt said:
freight hasn't been around 29 years moron. so which one of the other rats do ya work for? Go back to mom's basement son.
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Wow ... Your just a puppy. Look up FedEx LTL history. You'll see they bought American freight and then Watkins. You keep your years of service. Your just one of those little keyboard Tuff guy.
 
Okay , you 2 can take your fight to a pm or we will see ya in a couple weeks.
Knock it off , let's have some respect for eachother .
 
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