Not spending too much time on this, but as time allows, let's look at what's in the report.
1st up, the earnings call, and what they said about "Freight":
https://seekingalpha.com/article/42...-results-earnings-call-transcript?part=single
Fred Smith:
"And finally, FedEx Freight Direct for heavy and hard to handle items requiring delivery over the threshold, the so called H-3D [ph] market. FedEx can handle millions of additional shipments generated by these new offerings without adding significant additional sortation capacity."
"We posted a chart on our website that shows the significant customer correlation among our three core OpCos. Our ability to bundle Express, Ground and Freight services is essential to success in our competitive exosphere."
Brie Carere:
"Also e-commerce will continue to create great opportunities for our LTL business. Our new FedEx Freight Direct service moves large bulky items into consumer's homes and into businesses. Backed by the power of the FedEx brand and the speed and reliability of our nationwide priority network, we are able to reach over 80% of the U.S. population, and we have a unique ability to serve as a large part of this $10 billion market."
Alan Graf:
"Partially offsetting these negative factors were the benefits from an approximate $300 million decrease in variable incentive compensation, FedEx Ground volume growth of 7%, increased revenue per shipment at FedEx Freight and FedEx Ground and cost reductions from business realignment activities, including the U.S. voluntary employee buyout initiated last year."
Fred Smith:
"...First of all, there are other carriers that do better than FedEx with the exclusion of perhaps a little smaller carriers and ones sort of I'm not familiar with, I believe the better way to put that is there's one LTL carrier that does better than we do. And that's Old Dominion, and we're great admirers of Old Dominion.
But Old Dominion operates a network that has I believe somewhere in the 200 and some odd stations, versus our 360. They don't deliver every day to every part of the United States. And they've been very brilliant in finding a niche that's for lack of a better term near TL. It's in that zone between LTL and TL and their average weight per shipment in much more dense network is about 350-400 pounds higher.
So their margins are outstanding, and they have terrific and obviously, we benchmark them carefully as our other competitors, which gets to you your point, do we ever think about doing things differently? And the answer to that question is we think about doing things differently constantly."
1st up, the earnings call, and what they said about "Freight":
https://seekingalpha.com/article/42...-results-earnings-call-transcript?part=single
Fred Smith:
"And finally, FedEx Freight Direct for heavy and hard to handle items requiring delivery over the threshold, the so called H-3D [ph] market. FedEx can handle millions of additional shipments generated by these new offerings without adding significant additional sortation capacity."
"We posted a chart on our website that shows the significant customer correlation among our three core OpCos. Our ability to bundle Express, Ground and Freight services is essential to success in our competitive exosphere."
Brie Carere:
"Also e-commerce will continue to create great opportunities for our LTL business. Our new FedEx Freight Direct service moves large bulky items into consumer's homes and into businesses. Backed by the power of the FedEx brand and the speed and reliability of our nationwide priority network, we are able to reach over 80% of the U.S. population, and we have a unique ability to serve as a large part of this $10 billion market."
Alan Graf:
"Partially offsetting these negative factors were the benefits from an approximate $300 million decrease in variable incentive compensation, FedEx Ground volume growth of 7%, increased revenue per shipment at FedEx Freight and FedEx Ground and cost reductions from business realignment activities, including the U.S. voluntary employee buyout initiated last year."
Fred Smith:
"...First of all, there are other carriers that do better than FedEx with the exclusion of perhaps a little smaller carriers and ones sort of I'm not familiar with, I believe the better way to put that is there's one LTL carrier that does better than we do. And that's Old Dominion, and we're great admirers of Old Dominion.
But Old Dominion operates a network that has I believe somewhere in the 200 and some odd stations, versus our 360. They don't deliver every day to every part of the United States. And they've been very brilliant in finding a niche that's for lack of a better term near TL. It's in that zone between LTL and TL and their average weight per shipment in much more dense network is about 350-400 pounds higher.
So their margins are outstanding, and they have terrific and obviously, we benchmark them carefully as our other competitors, which gets to you your point, do we ever think about doing things differently? And the answer to that question is we think about doing things differently constantly."
