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FedEx will enhance shareholder value by spinning off FreightSJC FORESIGHT: 2 years, 8 months |
PUBLISHED SOURCE November 3, 2021Journal of CommerceSJ predicted in an open letter to Fred Smith that he should spin-off Freight for huge shareholder value creation READ ARTICLE |
INDUSTRY INTRODUCTION June 25, 2024FedEx Q4, FY 2024 earnings releaseFedEx mgmt. and BOD are conducting an assessment of the role of Freight in company’s portfolio structure and potential steps to further unlock sustainable shareholder value. READ ARTICLE |
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Digital brokers unable to disrupt traditional brokersSJC FORESIGHT: 2 Years, 9 Months |
PUBLISHED SOURCE January 2, 2020Journal of CommerceSJ predicted that it will take more than being digital to disrupt the brokerage industry READ ARTICLE |
INDUSTRY INTRODUCTION October 19, 2023Journal of CommerceConvoy (digital broker) says it will shut down operations, sell off technology amid market downturn READ ARTICLE |
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Diversion of parcel volume from UPS due to prospect of work stoppage by Teamsters on Aug 1, 2023SJC FORESIGHT: 1 Week |
PUBLISHED SOURCE July 31, 2023FreightwavesSJ estimated diversion from Teamsters strike related threat was 5% of ADV of 18.67 million or 933,500 Freightwaves READ ARTICLE |
INDUSTRY INTRODUCTION August 8, 2023UPS Q2, 2023 earnings releaseUPS announced that Teamsters strike threat contributed to diversion of 932,000 ADV during Q2 of 2023. (see UPS earnings call transcript/presentation) READ RELEASE |
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FedEx Express and Ground parcel networks integration will reduce costs by more than $3.33 billion per year (based on FY 2020 financials)SJC FORESIGHT: 4 Years |
PUBLISHED SOURCE April/June 2019JOC"Time for FedEx to operate and compete collectively" -Journal of Commerce READ ARTICLE |
INDUSTRY INTRODUCTION April 5, 2023FedEx Announces planned consolidation of operating companiesThru Drive, FDX expects to generate $4 billion of permanent cost reductions in FY 2025. (see press release below) READ PRESS RELEASE |
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Brick and Mortar Retailers should include local stores to fulfill Online orders for same-day / next-day deliverySJC FORESIGHT: 22 Years |
PUBLISHED SOURCE March 2000ShipEgis ProspectusBrick and Mortar retailers can offer same/next day delivery for online orders if fulfilled from local stores |
INDUSTRY INTRODUCTION December 9, 2022More Stores Are Doing Fulfillment for Orders Consumers Place Online, WSJ articleUlta Beauty, Macys, Tillys, Best Buy, Nordstrom are now embracing fulfillment from local brick and mortar stores for faster delivery by being closer to the consumers |
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Consumers will take predictable free over costly fast delivery and carriers need to adapt for itSJC FORESIGHT: 4 years |
PUBLISHED SOURCE May 2018 thru January 2022Reports for clients in 2020 and 2021, presentations at industry conferences, quotes to reporters and published articlesAfter Amazon started to promote next and same day free delivery to enhance its two day free delivery, SJC advised clients and presented at conferences that consumers prefer predictability of delivery over speed and would even opt for all deliveries to be made on limited days of a week instead of every day. READ ARTICLE |
INDUSTRY INTRODUCTION November 10, 2022WSJ articleCost-wary Retailers Ease Up On Race for Speedy Delivery READ ARTICLE |
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Raj Subramaniam will become CEO of FedEx Corp by June 28, 2022SJC FORESIGHT: 3 weeks |
PUBLISHED SOURCE March 10, 2022Conversions with Industry observers and Freightwaves article of March 25, 2022Soon after Richard Smith’s appointment as CEO of FedEx Express on March 10, 2022, SJ forecasted that Raj Subramaniam would be appointed CEO of FedEx Corp. while remaining President with Fred Smith becoming Executive Chairman by June 28, 2022. READ ARTICLE |
INDUSTRY INTRODUCTION March 28, 2022FedEx Press ReleaseRaj Subramaniam promoted to CEO and retain President title of FedEx Corp. and Fred Smith to become Executive Chairman as of June 1, 2022 |
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Richard Smith will become CEO of FedEx Express in 2022SJC FORESIGHT: 13 Months |
PUBLISHED SOURCE February 2021Conversions with Clients/observersSoon after John Smith’s appointment as CEO of FedEx Ground, SJ forecasted that Richard Smith would be appointed CEO of FedEx Express in 2022 ensuring Raj’s promotion to CEO of FedEx Corp. with Fred Smith becoming Executive Chairman. |
INDUSTRY INTRODUCTION March 10, 2022FedEx Press ReleaseRichard Smith promoted to President/CEO of FedEx Express. |
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Just deploying digital technology to offer brokerage service in trucking is not enough to disrupt that industrySJC FORESIGHT: 20 Years |
PUBLISHED SOURCE January 2020"It takes more than being digital to disrupt freight industry ", JOCREAD ARTICLE |
INDUSTRY INTRODUCTION July 22, 2021WSJUber Freight acquires Transplace, a traditional broker and freight management firm for $2.25 billion and a huge premium price with a multiple of 22.5 times EBITDA. READ ARTICLE |
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UPS should bill after delivery to avoid invoicing shippers for manifested but not shipped parcelsSJC FORESIGHT: 18 Months |
PUBLISHED SOURCE March 2019Meeting with UPS executives at SJC/ShipMatrix offices |
INDUSTRY INTRODUCTION January 2021Communication with UPS executiveUPS has changed invoicing to be issued after delivery of the parcels which eliminates billing for manifest errors |
SJ predicted in an open letter to Fred Smith that he should spin-off Freight for huge shareholder value creation
READ ARTICLEFedEx mgmt. and BOD are conducting an assessment of the role of Freight in company’s portfolio structure and potential steps to further unlock sustainable shareholder value.
READ ARTICLE
SJ predicted that it will take more than being digital to disrupt the brokerage industry
READ ARTICLEConvoy (digital broker) says it will shut down operations, sell off technology amid market downturn
READ ARTICLE
SJ estimated diversion from Teamsters strike related threat was 5% of ADV of 18.67 million or 933,500 Freightwaves
READ ARTICLEUPS announced that Teamsters strike threat contributed to diversion of 932,000 ADV during Q2 of 2023. (see UPS earnings call transcript/presentation)
READ RELEASE
"Time for FedEx to operate and compete collectively" -Journal of Commerce
READ ARTICLEThru Drive, FDX expects to generate $4 billion of permanent cost reductions in FY 2025. (see press release below)
READ PRESS RELEASE
Brick and Mortar retailers can offer same/next day delivery for online orders if fulfilled from local stores
Ulta Beauty, Macys, Tillys, Best Buy, Nordstrom are now embracing fulfillment from local brick and mortar stores for faster delivery by being closer to the consumers
After Amazon started to promote next and same day free delivery to enhance its two day free delivery, SJC advised clients and presented at conferences that consumers prefer predictability of delivery over speed and would even opt for all deliveries to be made on limited days of a week instead of every day.
READ ARTICLE
Soon after Richard Smith’s appointment as CEO of FedEx Express on March 10, 2022, SJ forecasted that Raj Subramaniam would be appointed CEO of FedEx Corp. while remaining President with Fred Smith becoming Executive Chairman by June 28, 2022.
READ ARTICLERaj Subramaniam promoted to CEO and retain President title of FedEx Corp. and Fred Smith to become Executive Chairman as of June 1, 2022
Soon after John Smith’s appointment as CEO of FedEx Ground, SJ forecasted that Richard Smith would be appointed CEO of FedEx Express in 2022 ensuring Raj’s promotion to CEO of FedEx Corp. with Fred Smith becoming Executive Chairman.
Richard Smith promoted to President/CEO of FedEx Express.
Uber Freight acquires Transplace, a traditional broker and freight management firm for $2.25 billion and a huge premium price with a multiple of 22.5 times EBITDA.
READ ARTICLE
UPS has changed invoicing to be issued after delivery of the parcels which eliminates billing for manifest errors
Internet will enable consumers to purchase products directly from manufacturers across borders bypassing retailers.
READ ARTICLE“Manufacturers are going to figure out how to go directly to the consumers more and more”. Arthur L. Valdez, Jr. Executive Vice President, Target Corp.
READ ARTICLE
“USPS should implement peak period pricing for its parcel services” Bloomberg Radio Interview
LISTEN TO INTERVIEWUSPS will implement a time-limited price increase on all commercial domestic competitive package volume from Oct 18 thru Dec 27, 2020.
READ ARTICLE
FedEx names Richard Smith, Founder’s son, No. 2 at FedEx Express
READ ARTICLE
Transformation in the Retail, Logistics and Transportation Industries
READ REPORTReliance Industries via Jio will build Indian e commerce business by partnering with local Kirana store owners.
READ ARTICLE
Carriers reporting better yield in spite no change in tonnage but due to better discipline in billing for the proper attributes of the shipments
“Time for FedEx to operate and compete collectively” Journal of Commerce
READ ARTICLEFedEx Ground will start to transport and deliver day-definite residential Express shipments.
READ ARTICLE
JD has 65,000 delivery drivers in China for its e commerce business. According to Jindel, in JD, Amazon sees the kind of company it eventually wants to be.
READ ARTICLEAmazon to add 100,000 delivery vehicles and building up its delivery fleet to become a force in the shipping industry
READ ARTICLE
FedEx and UPS to offer deliveries on Sundays effective January 2020
READ ARTICLE
Smaller operators' share of Amazon's total volume will rise to about 40%, but major parcel and postal carriers will only see as much volume as they do today
READ ARTICLEOnline giant says it has to build out its own services to handle the surging number of online orders that UPS, FedEx and Postal Service can’t
READ ARTICLE
Number of straight trucks in use by LTL carriers is at record high
The increased cost of transportation to the retailers easily will be offset by reduced operating costs as expensive store operations are cut back.
READ ARTICLEWal-Mart will open fewer stores and deepen cost-cutting efforts to free up cash for e-commerce services.
READ ARTICLE
Parcel carriers should implement peak surcharges to support the network expansion required to handle the increase in volume during the holiday season.
READ ARTICLEUPS announces peak surcharges for all customers after announcing its plans to do so in February 2015
"Baggage fees have funded investment in technology and baggage-handling equipment."
READ ARTICLE
"In today’s world of e-commerce, two-day shipping is table stakes…it no longer makes sense to charge for it."
READ ARTICLE
"The new tech boom does not create jobs comparable to the amount of invested capital."
Having built-in scales on forklifts on the freight dock and integration of the data captured and enhanced their ability to reduce the waiver of weight to under 10 pounds
Parcel carriers should offer zone one pricing to capture store to door deliveries required by brick and mortar retailers to compete with Amazon.
UPS announced it offered zone 1 pricing to select shippers during peak 2015 season.
FetchPackage.com introduces customized delivery from a drop off point.
READ ARTICLE
Internet will enable consumers to purchase products directly from manufacturers across borders at much lower cost.
READ ARTICLEBorders matter less and less in E-Commerce: a consumer in Chicago bought a necklace from China at 1/3 total cost compared to local store.
READ ARTICLE
Parcel carriers should implement peak surcharges to support the network expansion required to handle the increase in volume during the holiday season.
READ ARTICLEUPS will implement peak season surcharges in 2015
Google may try to extend its reach into retail by offering same-day or next-day distribution services to online retailers to compete with Amazon.
READ ARTICLE
Velocity Express venture into regional parcel business is a risky strategy with negative implications.
Velocity is sold to Transforce/Dynamex after incurring huge losses
READ ARTICLE
Brick and Mortar retailers can offer same/next day delivery for online orders if fulfilled from local stores
Macy's, ToysRus, Walmart testing this concept in select markets
James Welch is the most suitable candidate to replace retiring YRCW CEO, Bill Zollars.
READ ARTICLE
Separating charges for check-in & carry-on bags from passengers fare will result in lower passenger fares.
Spirit Airlines passengers fares are lower than other airlines & even total fares with baggage fees included are lower.
FedEx will combine Freight and National LTL into one network to handle regional and long haul service and announce by Dec 2010.
FedEx announced merger of FedEx Freight and National LTL effective January 2011.
Spirit Airlines passengers charges $5 more for carry-on bags than for check-in bags.
Implementing a per-bag fee to all bags could help limit overall carry-on items.
Spirit Airlines announced plans to charge for carry-on bags that do not fit under the seat.
Consumer loyalty will shift from the manufacturer of the product to the provider/ enabler (Amazon).
READ ARTICLE"Amazon may be benefiting more than other e-commerce sites, as consumer habits shift towards spending more time at a smaller set of websites"
As airlines generate separate baggage fees, fliers will benefit from improved baggage service.
Mishandled baggage complaints drop by 21% in July 2009 versus July 2008.
YRC can enhance regional carriers' identity via re-branding as YRC Holland, Reddaway, and New Penn.
READ ARTICLEYRC Launches yrcregional.com for three regional affiliates and drops USF name.
There is a need for the industry to have one voice to protect interest with lawmakers & customers.
MCAA and NTLA unify under MCAA & announce joint fall meeting. "We create a stronger voice for the same-day delivery industry," says MCAA President Michael Gualtieri.
Changing the term from "Courier" to "Same-Day" will better portray industry's service and value.
Dynamex Presentation at the 2009 BB&T Conference
"YRC may integrate Yellow and Roadway networks into one longhaul operation branded as YRC National, and bring all regional operating units...under one operating company."
READ ARTICLEYRC brand name introduced for integrated Yellow/Roadway network
Airlines should provide the option to ship bags via parcel carriers to by-pass airport security and enhance airline profitability.
United Airlines has partnered with FedEx to offer baggage service for a fee.
READ ARTICLE
As passengers gain financially by leaving unnecessary items at home, check-in/security lines will move faster.
Complaints to TSA about problems at screening checkpoints or baggage damage have declined by 7% in June/July, versus complaints issued in 2007.
READ ARTICLE
Charges for bags will encourage passengers to be more judicious with items carried and thus fewer bags.
American Airlines reports customers checked 1 million fewer bags than in July of 2007
UPS will cooperate with Teamsters on unionization of its LTL workers to reach an early and favorable contract for its parcel operations.
READ ARTICLETeamsters has signed up 11,100 of 15,000 UPS Freight workers to join the union.
Airlines should un-bundle airfare with a charge for bags transported.
American Airlines introduces $15 fee for first checked bag
DHL should outsource last mile delivery of low density remote zip codes to USPS.
DHL announces partnership with USPS for last mile delivery as part of its restructuring plan.
Delta & Northwest merge (2008), United & Continental merge (2010), Southwest & Airtran merger (2011)
YRC will control the direction of the NMFA as if it was a YRC Freight Agreement.
READ ARTICLEYRC agreement with Teamsters in Dec 2007 and ABF acceptance of it in Jan 2008.
"On October 15, 2007, United Parcel Service, Inc. (“UPS”) announced that Michael L. Eskew will retire as UPS’s chief executive officer and chairman of the board effective January 1, 2008."
READ ARTICLE
A new 5-year contract could be agreed upon between UPS & Teamsters by August 28, 2007
READ ARTICLEAgreement reached between Teamsters & UPS on September 30, 2007
YRCW should combine Yellow & Roadway linehaul/terminals for operational cost savings.
YRC CEO comments at BB&T Conference regarding combining Yellow & Roadway linehaul/terminals
FedEx will expand its transportation services.
FedEx expands its LTL operation with Watkins acquisition.
UPS gets $100 million a year contract to fly USPS mail.
Competition for retail customers is intensifying.
FedEx acquires Kinko's for $2.4 billion, Dec. 2003; DHL launches a Preferred Program with 1,100 AMPC stores, Nov. 2004
UPS parcel rates will increase by larger amounts to offset higher labor costs of 2002 Teamster contract.
2003-2006 rates +4.7% vs. 4.1% per yr for 1999-2002. while Domestic Av. Rev/ Pkg. +3.8% vs. 2.5% per yr
Kozmo.com closes
Deutsche Post buys controlling interest in DHL International, Ltd.
Passenger airline service is guaranteed for on-time arrival.
Interview with KDKA-TV.
UPS Express & Ground Parcel bundling
