FedEx Freight | Rumor Central

[da_bikerloco]

If it makes business sense, saves money, gets rid of "fat", FredEx will do it. Anything they can do to raise the bar, they will do. Whether we like it or not, affects us negatively or not. It's ALL about the bottom line, keeping the stocks climbing and keeping stockholders happy. It doesn't matter how much we rant, b!tch, cry or complain, they will do what's best for Fred and the stockholders. So we can either wait and see or not worry about it. I won't sweat it! Nothing we can do.

 

[Cornbinder]

The rumor (I can't back it up) I heard was Watkins had the Canadian permits, authorization, or whatever you call it. FXF couldn't just start opening service centers there. We needed Watkins infrastructure.
Just my 2 cents.

Funny almost everything on the maintenance end of things is almost 100% ready to merge. All paperwork already has a box to mark for FXF or FXN. Most of our shops are now working on FXN stuff. It's happening faster than the FXW and FXE merge did (remember what they said,, "they would never combine E and W")

gg11...You are absolutely correct, that was the easiest way for FDX. FRT. to get operating authority in Canada.

 

[imported_Mike Varnco]

In trying economic times people, companies, et al... go for cheap, cheaper, cheapest..... some will even sacrifice quality for it...

Very well said.
Over time, the freight pendulum swings back and forth between service and price.
In 2003-2006...it was all about service..."get a truck here" was what shippers were clamoring about, on-time% was very important due to the transportation system at capacity.
This was the thinking behind the Watkins acquisition...to take market share in the long-haul LTL segment by offering superior on-time service.
However, 2007-present...the pendulum swung back the other way...suddenly everyone wanted price.
This is where the Freight opco has problems because we're geared for on-time% and service, which comes from FedEx's background in the parcel business.
But this costs $$$$$...and then you end up with a high fixed-cost network competing against 3pl's, truckload carriers, intermodal, etc...which is where FXNL has problems.

That's why companies who are successful in LTL going forward will be those who can think outside of the hub-spoke box.
Like Roadrunner...a light-asset based model offering LTL, truckload, and brokerage services...this would be a great acquisition by FedEx and would be like FedEx Ground on the parcel side.
Or non-asset like CH Robinson...LTL consolidation, pooling, truckload brokerage, traffic management, distribution, etc.
Each successful service offering is an opportunity to cross-sell and bundle.

But before you know it, the pendulum can swing back to service again.
Industry consolidation (YRCW), the economy picks up steam...then everyone is clamoring for on-time.
So there is still lots of value in the Freight/FXNL offerings...it's just that we need to offer deferred services as well.

 

[Slackdragon]

I have been reading where Wal-mart is swinging back to demanding the on time service, and charging fines from their suppliers for not hitting the on time windows .

 

[quick67bird]

I have been reading where Wal-mart is swinging back to demanding the on time service, and charging fines from their suppliers for not hitting the on time windows .

Walmart is charging a 10% penalty to distributors that get the product in late to the Walmart DCs. I know this first hand.

As for the rumor on a merger I have been saying that since we bought Watkins. Check out my past posts. It makes sense to merge them and get rid of the all the non revenue producing departments that are not needed and are duplicated by having the 2 seperate operating companies.

If you do not think it will happen some of the senior employees remember being told that the East and West were going to remain seperate, but operate in conjunction with each other. Sounds pretty familiar huh.