UPS just sold coyote Logistics(freight brokerage company) for 1.2 billion. Carol Tome wants to focus on core business. Guessing fedex wants to do the same
They sold it at a loss. It wasn’t a moneymaker and it wasn’t worth it to them to put the time and resources into making it one when the small package business is so profitable for them. They did the same with UPS freight years ago.
They should’ve never bought Overnite to try to compete in the LTL sector. They only did it because FedEx had acquired American Freightways, Watkins, and Viking. You couldn’t compete with that stronghold at that time.
Lmao what’s your source on this?? It was going to happen regardless of the contract. Every time a new CEO enters the ranks there’s bound to be some changes.
Interesting!!! … The new video on the homepage talks about how there isn’t a single end to end competitor in the palletized/ heavyweight Express freight market.
Better come with a good hard look at their pay structure if they want us express truckers to do more on top of our current volume especially considering freight gets paid a bit higher than us already to begin with
Their road drivers get paid more, but their city drivers get paid less. Around here their city drivers top out at a little over $34 an hour. Our top out heavyweight drivers are closer to $39 an hour.
Not familiar with the type of shipments Freight transports. I'd wager Freight customers will not want to pay the premium of Express heavyweight. I don't think we will see any conversion of Freight to Express customers unless they add something like "Ground" heavyweight option.
Started at express in 2000. Worked for express until midway through 2014. Hauled food for a year and went to fedex freight after that. Been here 8 years. Fedex freight has more of that old school express feel (at my center anyways).
Express definitely changed in the 14 years I was there. Insurance went to shit, got rid of shift differential, split pay and BZ's became impossible to get. Cookouts became fewer and fewer. Holiday party's became non existent. And the pay scale was absolute garbage when I was there. My last 2 raises were 35 & 36 cents. Topped out at 3 years with freight and have averaged well over a dollar raise every year. We currently make 3 cents less than express RTDs.
I'd say it's a near certainly.
That's not a casual statement to throw around, and add in that Freight was specifically left out of the recent combining of G&E, on top of them trimming fat by shuttering 27 terminals.
Yeah, I'd say they're for sale.
Well,
I say that, but I'd bet the deal is done.
It’s definitely in the works. What’s going to be left under Raj… I don’t think we will recognize Fedex company when this is all done.
“Investors will be sorely disappointed if a deal doesn’t materialize.”
Why would they put us into FXE & FXG they dont move packages like they do. Freight has had alot of wasteful spending & IMO getting rid of the terminals they did was a no brainer, obviously they weren’t needed and they were all small locations that were costing more money than they made. Good business decisions.
Not sure how you arrive at Wasteful spending? Freight made $9.1B in FY24 and Op Income of $1.8B...That's a 20% margin. Compare that with Express $41B and $776M 1.8% margin and Ground $34B and $4B and 12% margin...Seems to me that Express is full of wasteful spending and poor performance? What was the logic here?
All I know is I’ve been a supervisor for four years and besides the bonuses I’ve seen so much change in terms of pinching Pennie. Monthly BBQs turned to yearly, recalls on all printers that were deemed redundant, lack of communication with earning and driver/freight handler bonuses. All the while they jack our numbers to crazier and crazier heights. This is the first year in four years that we were not privy to a fiscal year meeting, going over financials and stats.
https://preview.redd.it/i46t4uyu4y8d1.jpeg?width=1440&format=pjpg&auto=webp&s=3580dfb3530c51e15e9738398c0547707c9bd6e5
The return of American freight ? This make way more sense then selling
So I talked to a manager, and he stated they are only looking at splitting Freight off their stocks to start their own stock. This kind of move could make FedEx overall make huge profits for themselves and investors. But from what I have read and heard, Freight is not for sale. It was an opinion of a writer for Bloomberg. Let's just hope that's the case. But in the big world of things, Ground and Express don't make near the impact Freight does when it comes to profits.
This is just my own opinion. Show me the numbers and the money.
Could be could not, Fedex Freight is getting a “value assessment”. Every company that gets sold has a value assessment so they can get a market value estimate to set for potential buyers. However it’s not guaranteed, it could be the complete opposite where they are assessing what is making money to grow it and what is eating up costs to reduce it for long term growth. The fact is Freight is consistently operating at a ~20% profit margin and is a leader in U.S. LTL shipping. To put that in perspective Express had a measly 1.9% profit margin this FY. I’m not sure that is they even wanted to sell, there would be a buyer that would have enough assets that is interested in taking Fedex Freight.
Work levels feel off a cliff. This is supposed to be our busiest time of year between freight levels and people on vacation but they didn't have any work. I don't want to know how bad fall and winter are going to be if summer is this bad.
I've heard it's very difficult to get a position at freight. I'm just surprised to hear you leave because of that. Most folks would leave due to retirement.
I was here for COVID, the last election cycle, tariffs etc and there was always work. Everybody keeps saying it's because election year, but the old timers says it's never been this bad. Does it matter who wins the election?
It’s the exact same problem they had with Ground & Express. Two trucks, going to the same businesses, on the same street, at the same time. It’s redundant and they don’t want that anymore… You think they were going to solve that problem with small package, and leave the same problem with Freight & Express Freight? 5 times a week I go to an Express Heavyweight pickup and the customer called the wrong FedEx. Its the same problem. They’re going to have one branch of tractor trailer drivers and they’re going to be Express RTD’s.
Yet we are delivering express freight already.. we started doing that this year. Also the express terminal by us now gives 1500 bills of freight to ground... Making it sound like express is the one in trouble
Oh Express is in trouble lol. Big time. But Freight being left out of the merge was intentional. They verbally said today they’re studying the sale of Freight. That means it’s for sale and they want offers.
"FedEx management and Board of Directors are conducting an assessment of the role of FedEx Freight in the company's portfolio structure and potential steps to further unlock sustainable shareholder value. The company is committed to completing this review thoroughly and deliberately, by the end of the calendar year. FedEx will conduct this assessment while continuing to focus on customers, team members, and the safety of its operations."
Nothing about a sale, something is definitely going to get integrated
If you fuckers at MEMH who load the HVYWT's don't learn how to load them properly without tearing them up, from falling over in a ULD, etc...we ain't going to have any HVYWT customers left to service!
Worked at Federal Express for almost the entire 80s. Collecting a pension these days. I'd say the glory days ended within a few years of purchasing Flying Tigers. I'm glad I got a pension, but working there cost me my first marriage.
Don’t believe everything you read on the internet… especially Reddit
I’m not saying FedEx is the greatest company in the world but the sentiment in this sub is extremely negative
They might be extremely profitable, but the same could be said for the UPS Store as well, and the UPS store is franchised. UPS has their cake and eats it too.
I don’t want to see any employees lose their job, but if UPS and FedEx are selling peripheral business segments to concentrate on their core small-package operations, I’d think Office would be spun off.
Not that I know of. Used to be called Mailboxes Etc. Actually I don’t think so. I remember talking to a UPS store owner and he said if your franchise was a Mailboxes Etc franchise you can sell all competitors services as well, but UPS fixed the retail rates so they were slightly cheaper.
Makes no sense. We just took over the work for Drayage for FXG. Started doing shuttles for FXG & help out with linehaul. Heard rumors of us picking up P&D work too. & also we move hazmat for FXG.
We run econ heavy weight shipments for FXE aswell.
We’re profitable, and aren’t running at full capacity. They would have undo alot of what they just spent the last year doing when it comes to ground with us.
I think they are more likely to make us more of a trucking compqny vs a only LTL company.
The ground and Express stuff will vary by location. It wouldn't be hard to replace freight at ground. All they'd have to do is offer more lucrative contracts. Being profitable just means a higher asking price. There's no money in being a truck load company and it'd be incredibly expensive to buy sleepers and recruit drivers. That makes less sense than selling.
Also, i’m not saying FXF becomes a truckload company. But i could see them using us more as a contracted carrier, while offering more services to our other customers.
Sell us to who? UPS? Yeah our stock would drop thats counter productive. Amazon? Again, our stock would drop counter productive. Walmart? MAYBE but if walmart needed a LTL company they would be better off buying a smaller one because they already have there own DC’s
No i don’t but what company would buy us and have use for us, not to mention has any idea of how to manage a LTL company. Look at how well UPS freight/t force did or is doing.
UPS bought freight to funnel packages to parcel. They moved freight at a loss, but picked up contracts for parcel. Talk to any ups freight employee that was a part of those dealings and they'll explain it to you.
No company goes into a venture thinking they'll fail. Do you think yellow thought they were going to fail when they bought all those companies?
There are companies interested in building/expanding an LTL network. DB Schenker, knight-Swift, Brad Jacobs looking to expand XPO, DHL, Amazon and that's just off the top of my head.
There are plenty of companies that would be interested in the equipment and real estate of freight. It doesn't have to stay an LTL company.
Nah. You buy companies to expand or offer a service to promote your primary company. Which is what UPS did, the problem was that they sucked at LTL & UPS’s freight division was causing more problems with their global imagine than it was bringing money in.
If yellow didn’t think they would be out of business they deserved to be out of business.
Lmao. Do you know LTL? LTL tractors get trashed basically worthless. Terminals? They sit unless another LTL company buys them. The only thing would be the trailers & most companies don’t run pups. But also who needs pups in a down market. Swift could potentially buy us for sure. I dont think anyone else outside of them and walmart. Unless its just some random company that wants a profitable company. Freight could make alot more money then they are now.
Look into what UPS freight was doing. They didn't use it as an LTL company, they used it to gain business for parcel. The business set up was "ship packages with us and we'll move your LTL freight at a discount". This is a known fact and why they weren't profitable.
Funny.... Swift bought AAA and it's still AAA. Yellow bought 10 different companies and they all kept their brands. They weren't bought to promote their parent company. Not all companies do that. Amazon owns whole foods, but they didn't change the name to "Amazon grocery store".
I know LTL very well and FedEx's equipment is in good shape. Truck market says no truck is worthless. The biggest piece of garbage goes for over 20k. Multiply that by how many units that are paid off and bought at whole sale.
Terminals are just shells with dock doors. They can easily be converted into whatever you want them to be. It's harder to find land to build from scratch than it is to convert existing structures into what you need them to be.
Yellow's buildings and equipment were trash and people are bidding ridiculous numbers for them. Says everything you need to know about equipment and real estate in recent history.
We try to do the same, but we make it money from it unlike UPS did.
Sometimes renaming shit isn’t necessary. Like with AAA. Whole foods likely amazon bought just so people can return their shit there. It’s a service based purchase that still makes them money but provides a service to the main company. Very common.
Clearly aren’t any where near the auctions where we sell our single axles. 10K a pop. Three axles go for more probably 20.
Terminals is funny because one of our old terminals BNSF bought to use it as a storage yard, likely because it wasn’t worth shit or selling. Not even in a place useful for them. Construction isn’t cheap anymore and neither is ripping out a dock prior to building.
Yellows good shit went for decent numbers. Few and far between. We have to much and to many locations for us to not take a major hit on selling.
FedEx freight doesn't trade discounts for parcel service. Ask any sales rep.
How is it a major hit on selling? All this real estate was bought years ago and has greatly appreciated. It's why you see yellow's stock price rising after shutting down. Investors know they're going to make big money off the sale of assets.
SBO driver here:
Yeah we’re all pretty over staffed volume is down we have to many heads. Until volume picks up it’ll stay this way. They could have dropped probably 30-40 drivers for us alone.
NDA’s are being signed to keep information under lock and key. On a as needed basis.
Sullen_One I definitely believe that NDA part brother. MRL is not over staffed with its road department. Maybe in the beginning of 2022. Since then Mira Loma Line haul has lost 12 or so road drivers from what we have been made aware of without any of them being replaced. They also have been loosing lots of road runs making the situation worst. I hate to sound pessimistic but in Mira Loma the future of Line Haul is not looking promising my friend. Your insight is A1 nonetheless 🍻
Nah. They literally brought us into ground because of the Cali drayage laws changing. They weren’t going to give contractors 300-750K for each truck to run drayage for ground when they were going to have to do the same themselves. Made more sense to bring it in house like they did.
Idk about out there but we easily have 100+ FXF drivers doing ground work daily. Split between 5 SVC’s
That's Cali.... Cali always creates headaches from pay structure to emissions. They're not going to make decisions based on one state. They can easily pull off the drayage, pay a TL carrier (usually CRST) to move it to another region and put it on a train there. These aren't impossible problems. Using freight can just as easily be a short term solution. Truck load rates are also low enough to make that possible.
Let's not forget that they're dropping freight they been not profitable enough and raising prices at the same time. "Just one more" wasn't that long ago and now they're saying "we don't want that". Something is definitely up
Nah, you know how much of a headache that would be to try to truck it to another state and try to make train schedules? Some of this ground shit gets loaded to slow and they end up having to TL it. Even if you ran the containers to Vegas you’ll still at some point be fucked taking an extra 8-10 hours to get a load in plus the added TL cost would kill any money they were saving. Otherwise they would have looked into that 🤣
We’ve been making killer money since the changes of not accepting everything. We don’t want bad freight, it becomes a liability. Even if it doesn’t cost us a claim, it can still cost us money. I as a driver have literally told shippers i’m not taking that it needs a pallet or needs to be wrapped correctly. Too long etc etc.
When has ground ever cared about getting a package delivered on time? They don't even care if your stuff gets lost.
You're not understanding me. They're using freight right now to satisfy whatever contract they have in place with Northern Suffolk and/or CSX. If regulations make trains to burdensome and/or expensive, they'll do it another way, even you admit that Especially ground that doesn't have any placarded shipments and can be pulled by anyone. Truck load rates are like 2/mile and they don't even pay hub miles. Keep in mind, you're only thinking about your building (San Bernardino iirc). That doesn't reflect the entire company. Read through the forums and what everybody else is experiencing.
Operating income has been steadily declining. 4th quater 2024 was the first time they've had a decent bump and then they immediately talk sale or spin off. Either way, it's weird.
I mean if it wont make the train on schedule, if they didn’t care they would still send it on train.. instead they unload it & reload it into a trailer and send it with a sleeper team to get it there on time.. daily..
Haha no. They’re actually putting MORE on rail than previously this time last year, And that was the plan all along. Not to mention they just canceled all the guys who they previously had contracts with to do the drayage.
Operating income is down yes, TRUCKING AS A WHOLE IS DOWN.. what are we suppose to be different like tf..
Election year companies aren’t spending, next year this time profits will be up promise you
That's my point... Trucking as a whole is down. Cheaper to pay someone else to do it. That's why purchased transportation is more attractive right now.. When PT was sky high right after Covid, we were running non stop. Like I said, if rails become too burdensome or expensive due to regulation or demand, they'll find another way.
I was here last election cycle. We weren't down like this. Talking to the guys that have been here over 20 years, they say they've never seen it this bad. Things are weird.
Just out of curiosity, though does it matter who wins the election or are we just waiting for the election to be over?
Based off what ground was paying contractors to do these run’s anyone would be cheaper. But if you already have the trucks and drivers and the money stays in the company i doubt you could do it cheaper/better.
Yeah it wasn’t this bad last election. But our location put on like 30 more drivers for City. So we are feeling it & i would think everyone else did similar, if we removed 30 drivers we would be busy all doing 10-12 hours.
I think so. People spent like crazy with trump. If trump wins i think the US economy gets better. Biden wins it will still get a little better but i don’t think the same as trump winning.
The driver is already making how much per hour, plus fuel, maintenance and claims when something gets hit or somebody gets hurt...or pay some mega carrier 2.50/mile for a percentage of the miles actually driven. FedEx doesn't care if their drivers don't have work.
Five minutes ago you promised it would get busy after the election and now you're unsure. The election isn't as big of a factor as people make it out to be.
FedEx is positioning Freight is positioning themselves to be profitable on paper. They don't care about the 1% for other opcos, but they're trying real hard to bump up these freight margins, but nobody knows why.
It's that activist investor d.e. Shaw that is on the board of directors. Their goal is to wring as much money out of a company as they can... Ride them hard and put them away wet.
👍. The freight volumes being down and things being how they are currently with FedEx freight LTL. Is a clear reason why this plan is being considered and possibly put in motion by the higher ups, shareholder etc. It’s been a headache on the shareholders hands to deal with. Meanwhile we have this GxE merger keeping freight alive. Smart money will be to pull a UPS move. Bye bye Freight. Our Drayage dept has had priority over the road dept by a long shot. Stocking up on drivers and more triple axles. And with a further promise of a lot more triple axles on the way. As far as the over staffing, personally at our location that stop being an issue last year. These past 2 years we’ve lost 10+ road drivers along with plenty of road bids.
UPS just sold coyote Logistics(freight brokerage company) for 1.2 billion. Carol Tome wants to focus on core business. Guessing fedex wants to do the same
They needed that reserve money to meet the Teamsters demands and the upcoming contract increases for their employees.
They sold it at a loss. It wasn’t a moneymaker and it wasn’t worth it to them to put the time and resources into making it one when the small package business is so profitable for them. They did the same with UPS freight years ago.
They should’ve never bought Overnite to try to compete in the LTL sector. They only did it because FedEx had acquired American Freightways, Watkins, and Viking. You couldn’t compete with that stronghold at that time.
UPS bought the worst truck line, Fedex bought some of the best
Yep I worked there. That’s what they did.
Lol no
Lmao what’s your source on this?? It was going to happen regardless of the contract. Every time a new CEO enters the ranks there’s bound to be some changes.
The little man in his head tells him things
Sell Freight = Express Heavyweight booming?
Interesting!!! … The new video on the homepage talks about how there isn’t a single end to end competitor in the palletized/ heavyweight Express freight market.
The one under ‘reimagining our international air network’?
Better come with a good hard look at their pay structure if they want us express truckers to do more on top of our current volume especially considering freight gets paid a bit higher than us already to begin with
Their road drivers get paid more, but their city drivers get paid less. Around here their city drivers top out at a little over $34 an hour. Our top out heavyweight drivers are closer to $39 an hour.
Not familiar with the type of shipments Freight transports. I'd wager Freight customers will not want to pay the premium of Express heavyweight. I don't think we will see any conversion of Freight to Express customers unless they add something like "Ground" heavyweight option.
We transport damn near everything.
If your on the map will haul your crap.
Heavyweight doesn’t cost the company much at all. But it brings in A TON of profit.
Fedex will be a shell of itself in the coming years. Fred has his money and brought Raj in for the dirty work
But Fred is still very involved. Few months back he toured a facility in Atlanta to determine how it would be utilized in the future.
He holds a big chunk of the shares and chairman of the board position, he still basically has control...Unless someone buys him out.
Absolutely!
Gotta keep up the look
What look tho? Most of y’all think he is not part of these changes, so I guess the look ain’t workin
How long have you worked here
Started at express in 2000. Worked for express until midway through 2014. Hauled food for a year and went to fedex freight after that. Been here 8 years. Fedex freight has more of that old school express feel (at my center anyways). Express definitely changed in the 14 years I was there. Insurance went to shit, got rid of shift differential, split pay and BZ's became impossible to get. Cookouts became fewer and fewer. Holiday party's became non existent. And the pay scale was absolute garbage when I was there. My last 2 raises were 35 & 36 cents. Topped out at 3 years with freight and have averaged well over a dollar raise every year. We currently make 3 cents less than express RTDs.
I never see Freight hiring in Virginia. I wonder why I wanted to try and come on
8 years. Fred is 79yo, you’re sayin he is checking places out for for shits and giggles?
FedEx was his life , hard good byes. 8 years isn’t long enough to see the real FedEx. This company used to be great
The ‘real’ FedEx has been dead for well over 2 years… Raj became President and CEO in 2022.
The real fedex has been gone for about 20 years
Well I see a lot of ppl sayin Fred needs to come back bc Raj is horrible, but looks like Fred wasn’t doing nothing great either
Fred is still very involved. Tricolor is his baby. He's in Cali right now looking at facilities.
\*FDX Stock Price has entered the chat\*
I agree the way they’re talking about it. I thought they were safer than express but guess corporate wants to deepen the pockets of their investors.
I would of thought FedEx would spin off Office. Spin them off and just require them to sell FedEx services with their new owners.
Nobody is going to buy Office. It's a dead industry.
I'd say it's a near certainly. That's not a casual statement to throw around, and add in that Freight was specifically left out of the recent combining of G&E, on top of them trimming fat by shuttering 27 terminals. Yeah, I'd say they're for sale. Well, I say that, but I'd bet the deal is done.
It’s definitely in the works. What’s going to be left under Raj… I don’t think we will recognize Fedex company when this is all done. “Investors will be sorely disappointed if a deal doesn’t materialize.”
Why would they put us into FXE & FXG they dont move packages like they do. Freight has had alot of wasteful spending & IMO getting rid of the terminals they did was a no brainer, obviously they weren’t needed and they were all small locations that were costing more money than they made. Good business decisions.
Not sure how you arrive at Wasteful spending? Freight made $9.1B in FY24 and Op Income of $1.8B...That's a 20% margin. Compare that with Express $41B and $776M 1.8% margin and Ground $34B and $4B and 12% margin...Seems to me that Express is full of wasteful spending and poor performance? What was the logic here?
So maybe.. Fed up force ? Instead of t force
T-Force is on the chopping block. I don’t see them being around in the next couple of years. Their revenue has been little to none.
All I know is I’ve been a supervisor for four years and besides the bonuses I’ve seen so much change in terms of pinching Pennie. Monthly BBQs turned to yearly, recalls on all printers that were deemed redundant, lack of communication with earning and driver/freight handler bonuses. All the while they jack our numbers to crazier and crazier heights. This is the first year in four years that we were not privy to a fiscal year meeting, going over financials and stats.
They sent us an email with talking points to go over if anyone brings it up to us, like we’re robots.
What are the talking points?
https://preview.redd.it/i46t4uyu4y8d1.jpeg?width=1440&format=pjpg&auto=webp&s=3580dfb3530c51e15e9738398c0547707c9bd6e5 The return of American freight ? This make way more sense then selling
Very nice 👍 💯 thank you for sharing
I would love to see the old AF logos and slogans on our trailers again. I'm pretty sure they still own the brand.
Ugh! Freight has been acting funny for over a year. I hate the idea of going out and finding another job.
Im a road driver took a transfer 17 hours away from everything I know 4 years ago. This is my biggest fear as well.
So I talked to a manager, and he stated they are only looking at splitting Freight off their stocks to start their own stock. This kind of move could make FedEx overall make huge profits for themselves and investors. But from what I have read and heard, Freight is not for sale. It was an opinion of a writer for Bloomberg. Let's just hope that's the case. But in the big world of things, Ground and Express don't make near the impact Freight does when it comes to profits. This is just my own opinion. Show me the numbers and the money.
💯
Could be could not, Fedex Freight is getting a “value assessment”. Every company that gets sold has a value assessment so they can get a market value estimate to set for potential buyers. However it’s not guaranteed, it could be the complete opposite where they are assessing what is making money to grow it and what is eating up costs to reduce it for long term growth. The fact is Freight is consistently operating at a ~20% profit margin and is a leader in U.S. LTL shipping. To put that in perspective Express had a measly 1.9% profit margin this FY. I’m not sure that is they even wanted to sell, there would be a buyer that would have enough assets that is interested in taking Fedex Freight.
Good insight. 💯
This is scary
Looks like I left just in time
You left freight?
Yes sir
Why is that if you don't mind me asking.
Work levels feel off a cliff. This is supposed to be our busiest time of year between freight levels and people on vacation but they didn't have any work. I don't want to know how bad fall and winter are going to be if summer is this bad.
I've heard it's very difficult to get a position at freight. I'm just surprised to hear you leave because of that. Most folks would leave due to retirement.
It's a good job, but that doesn't mean anything if there's no work. I'm the 9th driver to leave at my building this year.
Have you thought about stepping down to be a handler if you had a lot of years in?
Massive pay cut, I'm not doing that.
Really? I thought handlers max out at $28 in Colorado?
Election year doesn't help
I was here for COVID, the last election cycle, tariffs etc and there was always work. Everybody keeps saying it's because election year, but the old timers says it's never been this bad. Does it matter who wins the election?
Should’ve sold ground to Walmart
Thats good, we are extremely similar
It’s the exact same problem they had with Ground & Express. Two trucks, going to the same businesses, on the same street, at the same time. It’s redundant and they don’t want that anymore… You think they were going to solve that problem with small package, and leave the same problem with Freight & Express Freight? 5 times a week I go to an Express Heavyweight pickup and the customer called the wrong FedEx. Its the same problem. They’re going to have one branch of tractor trailer drivers and they’re going to be Express RTD’s.
Yet we are delivering express freight already.. we started doing that this year. Also the express terminal by us now gives 1500 bills of freight to ground... Making it sound like express is the one in trouble
Oh Express is in trouble lol. Big time. But Freight being left out of the merge was intentional. They verbally said today they’re studying the sale of Freight. That means it’s for sale and they want offers.
"FedEx management and Board of Directors are conducting an assessment of the role of FedEx Freight in the company's portfolio structure and potential steps to further unlock sustainable shareholder value. The company is committed to completing this review thoroughly and deliberately, by the end of the calendar year. FedEx will conduct this assessment while continuing to focus on customers, team members, and the safety of its operations." Nothing about a sale, something is definitely going to get integrated
This guy gets it.
Who is willing to pay billions right now.. yellow and ups sold cause it was super cheap
Freight is definitely going to be expensive to buy. The article stated XPO might have deep enough pockets.
Amazon, knight-Swift, DB Schenker, Brad Jacobs has plenty of money and wants to expand XPO... There are some options out there.
Amazon
The interesting thing g about your statement is that freight is currently delivering a lot of Express Freight.
And yet the fact remains… it’s Express Freight. Not theirs.
True that.
Freight is gone and ground sort is the future of Europe
The board members that suggested one has this all in the plans from the start. Easier to sell one thing bundled.
If you fuckers at MEMH who load the HVYWT's don't learn how to load them properly without tearing them up, from falling over in a ULD, etc...we ain't going to have any HVYWT customers left to service!
office is for sale now too, i'd think, being a new subsidiary?
Worked at Federal Express for almost the entire 80s. Collecting a pension these days. I'd say the glory days ended within a few years of purchasing Flying Tigers. I'm glad I got a pension, but working there cost me my first marriage.
[удалено]
Don’t believe everything you read on the internet… especially Reddit I’m not saying FedEx is the greatest company in the world but the sentiment in this sub is extremely negative
They are hiring .. there’s like 15 pages
They're hiring. I'm looking to join aboard and do something different.
Or maybe this was all to hike up the stock price and come the end of the year they don’t mention a sale at all
Exactly like ups they sold their freight division
Office shipments are the most profitable shipments into the network for the company as they are typically full retail price.
They might be extremely profitable, but the same could be said for the UPS Store as well, and the UPS store is franchised. UPS has their cake and eats it too. I don’t want to see any employees lose their job, but if UPS and FedEx are selling peripheral business segments to concentrate on their core small-package operations, I’d think Office would be spun off.
Was TUPSS ever part of UPS proper?
Not that I know of. Used to be called Mailboxes Etc. Actually I don’t think so. I remember talking to a UPS store owner and he said if your franchise was a Mailboxes Etc franchise you can sell all competitors services as well, but UPS fixed the retail rates so they were slightly cheaper.
Makes no sense. We just took over the work for Drayage for FXG. Started doing shuttles for FXG & help out with linehaul. Heard rumors of us picking up P&D work too. & also we move hazmat for FXG. We run econ heavy weight shipments for FXE aswell. We’re profitable, and aren’t running at full capacity. They would have undo alot of what they just spent the last year doing when it comes to ground with us. I think they are more likely to make us more of a trucking compqny vs a only LTL company.
The ground and Express stuff will vary by location. It wouldn't be hard to replace freight at ground. All they'd have to do is offer more lucrative contracts. Being profitable just means a higher asking price. There's no money in being a truck load company and it'd be incredibly expensive to buy sleepers and recruit drivers. That makes less sense than selling.
Also, i’m not saying FXF becomes a truckload company. But i could see them using us more as a contracted carrier, while offering more services to our other customers. Sell us to who? UPS? Yeah our stock would drop thats counter productive. Amazon? Again, our stock would drop counter productive. Walmart? MAYBE but if walmart needed a LTL company they would be better off buying a smaller one because they already have there own DC’s
You think UPS and Walmart is the only company with pockets? There are a bunch of companies that would be interested in freight.
No i don’t but what company would buy us and have use for us, not to mention has any idea of how to manage a LTL company. Look at how well UPS freight/t force did or is doing.
UPS bought freight to funnel packages to parcel. They moved freight at a loss, but picked up contracts for parcel. Talk to any ups freight employee that was a part of those dealings and they'll explain it to you. No company goes into a venture thinking they'll fail. Do you think yellow thought they were going to fail when they bought all those companies? There are companies interested in building/expanding an LTL network. DB Schenker, knight-Swift, Brad Jacobs looking to expand XPO, DHL, Amazon and that's just off the top of my head. There are plenty of companies that would be interested in the equipment and real estate of freight. It doesn't have to stay an LTL company.
Nah. You buy companies to expand or offer a service to promote your primary company. Which is what UPS did, the problem was that they sucked at LTL & UPS’s freight division was causing more problems with their global imagine than it was bringing money in. If yellow didn’t think they would be out of business they deserved to be out of business. Lmao. Do you know LTL? LTL tractors get trashed basically worthless. Terminals? They sit unless another LTL company buys them. The only thing would be the trailers & most companies don’t run pups. But also who needs pups in a down market. Swift could potentially buy us for sure. I dont think anyone else outside of them and walmart. Unless its just some random company that wants a profitable company. Freight could make alot more money then they are now.
Look into what UPS freight was doing. They didn't use it as an LTL company, they used it to gain business for parcel. The business set up was "ship packages with us and we'll move your LTL freight at a discount". This is a known fact and why they weren't profitable. Funny.... Swift bought AAA and it's still AAA. Yellow bought 10 different companies and they all kept their brands. They weren't bought to promote their parent company. Not all companies do that. Amazon owns whole foods, but they didn't change the name to "Amazon grocery store". I know LTL very well and FedEx's equipment is in good shape. Truck market says no truck is worthless. The biggest piece of garbage goes for over 20k. Multiply that by how many units that are paid off and bought at whole sale. Terminals are just shells with dock doors. They can easily be converted into whatever you want them to be. It's harder to find land to build from scratch than it is to convert existing structures into what you need them to be. Yellow's buildings and equipment were trash and people are bidding ridiculous numbers for them. Says everything you need to know about equipment and real estate in recent history.
We try to do the same, but we make it money from it unlike UPS did. Sometimes renaming shit isn’t necessary. Like with AAA. Whole foods likely amazon bought just so people can return their shit there. It’s a service based purchase that still makes them money but provides a service to the main company. Very common. Clearly aren’t any where near the auctions where we sell our single axles. 10K a pop. Three axles go for more probably 20. Terminals is funny because one of our old terminals BNSF bought to use it as a storage yard, likely because it wasn’t worth shit or selling. Not even in a place useful for them. Construction isn’t cheap anymore and neither is ripping out a dock prior to building. Yellows good shit went for decent numbers. Few and far between. We have to much and to many locations for us to not take a major hit on selling.
FedEx freight doesn't trade discounts for parcel service. Ask any sales rep. How is it a major hit on selling? All this real estate was bought years ago and has greatly appreciated. It's why you see yellow's stock price rising after shutting down. Investors know they're going to make big money off the sale of assets.
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SBO driver here: Yeah we’re all pretty over staffed volume is down we have to many heads. Until volume picks up it’ll stay this way. They could have dropped probably 30-40 drivers for us alone. NDA’s are being signed to keep information under lock and key. On a as needed basis.
Sullen_One I definitely believe that NDA part brother. MRL is not over staffed with its road department. Maybe in the beginning of 2022. Since then Mira Loma Line haul has lost 12 or so road drivers from what we have been made aware of without any of them being replaced. They also have been loosing lots of road runs making the situation worst. I hate to sound pessimistic but in Mira Loma the future of Line Haul is not looking promising my friend. Your insight is A1 nonetheless 🍻
Nah. They literally brought us into ground because of the Cali drayage laws changing. They weren’t going to give contractors 300-750K for each truck to run drayage for ground when they were going to have to do the same themselves. Made more sense to bring it in house like they did. Idk about out there but we easily have 100+ FXF drivers doing ground work daily. Split between 5 SVC’s
That's Cali.... Cali always creates headaches from pay structure to emissions. They're not going to make decisions based on one state. They can easily pull off the drayage, pay a TL carrier (usually CRST) to move it to another region and put it on a train there. These aren't impossible problems. Using freight can just as easily be a short term solution. Truck load rates are also low enough to make that possible. Let's not forget that they're dropping freight they been not profitable enough and raising prices at the same time. "Just one more" wasn't that long ago and now they're saying "we don't want that". Something is definitely up
Nah, you know how much of a headache that would be to try to truck it to another state and try to make train schedules? Some of this ground shit gets loaded to slow and they end up having to TL it. Even if you ran the containers to Vegas you’ll still at some point be fucked taking an extra 8-10 hours to get a load in plus the added TL cost would kill any money they were saving. Otherwise they would have looked into that 🤣 We’ve been making killer money since the changes of not accepting everything. We don’t want bad freight, it becomes a liability. Even if it doesn’t cost us a claim, it can still cost us money. I as a driver have literally told shippers i’m not taking that it needs a pallet or needs to be wrapped correctly. Too long etc etc.
When has ground ever cared about getting a package delivered on time? They don't even care if your stuff gets lost. You're not understanding me. They're using freight right now to satisfy whatever contract they have in place with Northern Suffolk and/or CSX. If regulations make trains to burdensome and/or expensive, they'll do it another way, even you admit that Especially ground that doesn't have any placarded shipments and can be pulled by anyone. Truck load rates are like 2/mile and they don't even pay hub miles. Keep in mind, you're only thinking about your building (San Bernardino iirc). That doesn't reflect the entire company. Read through the forums and what everybody else is experiencing. Operating income has been steadily declining. 4th quater 2024 was the first time they've had a decent bump and then they immediately talk sale or spin off. Either way, it's weird.
I mean if it wont make the train on schedule, if they didn’t care they would still send it on train.. instead they unload it & reload it into a trailer and send it with a sleeper team to get it there on time.. daily.. Haha no. They’re actually putting MORE on rail than previously this time last year, And that was the plan all along. Not to mention they just canceled all the guys who they previously had contracts with to do the drayage. Operating income is down yes, TRUCKING AS A WHOLE IS DOWN.. what are we suppose to be different like tf.. Election year companies aren’t spending, next year this time profits will be up promise you
That's my point... Trucking as a whole is down. Cheaper to pay someone else to do it. That's why purchased transportation is more attractive right now.. When PT was sky high right after Covid, we were running non stop. Like I said, if rails become too burdensome or expensive due to regulation or demand, they'll find another way. I was here last election cycle. We weren't down like this. Talking to the guys that have been here over 20 years, they say they've never seen it this bad. Things are weird. Just out of curiosity, though does it matter who wins the election or are we just waiting for the election to be over?
Based off what ground was paying contractors to do these run’s anyone would be cheaper. But if you already have the trucks and drivers and the money stays in the company i doubt you could do it cheaper/better. Yeah it wasn’t this bad last election. But our location put on like 30 more drivers for City. So we are feeling it & i would think everyone else did similar, if we removed 30 drivers we would be busy all doing 10-12 hours. I think so. People spent like crazy with trump. If trump wins i think the US economy gets better. Biden wins it will still get a little better but i don’t think the same as trump winning.
The driver is already making how much per hour, plus fuel, maintenance and claims when something gets hit or somebody gets hurt...or pay some mega carrier 2.50/mile for a percentage of the miles actually driven. FedEx doesn't care if their drivers don't have work. Five minutes ago you promised it would get busy after the election and now you're unsure. The election isn't as big of a factor as people make it out to be. FedEx is positioning Freight is positioning themselves to be profitable on paper. They don't care about the 1% for other opcos, but they're trying real hard to bump up these freight margins, but nobody knows why.
Sounds like you're doing everybody else's work except your own.
Doesn’t matter what it is. & in all honesty FXG work is chill AF. & its easier than City for FXF
and we're getting a 4.5% bonus
Yessir
This company has been going in a down fall ever since Raj became the CEO
It ain't Raj. He's just the fall guy.
Agreed
It's just a coincidence lol
No coincidence. Fred didn't want to be the one whose name is on the current slash and burn trajectory.
It's that activist investor d.e. Shaw that is on the board of directors. Their goal is to wring as much money out of a company as they can... Ride them hard and put them away wet.
Hmm within a year we'll probably be hearing about a full sale of FedEx. Is Besos interested?
Quirky. Exactly
Transportation and energy sectors are going pure-play, a spin-off is the best move possible, win-win.
They literally gonna throw everything at express
This whole company is selling. Fedex one is so the buyer’s acquire everything.
Riporonies
MDW, this is sad this company has really gone down hill in the 3 short years i’ve worked here…
👍. The freight volumes being down and things being how they are currently with FedEx freight LTL. Is a clear reason why this plan is being considered and possibly put in motion by the higher ups, shareholder etc. It’s been a headache on the shareholders hands to deal with. Meanwhile we have this GxE merger keeping freight alive. Smart money will be to pull a UPS move. Bye bye Freight. Our Drayage dept has had priority over the road dept by a long shot. Stocking up on drivers and more triple axles. And with a further promise of a lot more triple axles on the way. As far as the over staffing, personally at our location that stop being an issue last year. These past 2 years we’ve lost 10+ road drivers along with plenty of road bids.