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B2B operating model used for B2C will lose ground to model designed for B2CSJC FORESIGHT: 16 Years |
PUBLISHED SOURCE February 1999"E-commerce’s Mixed Blessings", Traffic WorldREAD ARTICLE |
INDUSTRY INTRODUCTION 2015/2021Traffic World |
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Peak surcharges in place to support increased volumes for the holiday seasonSJC FORESIGHT: 1 Year |
PUBLISHED SOURCE December 31, 2013"A Christmas Wish: Solving the Delivery Debacle", JOCParcel carriers should implement peak surcharges to support the network expansion required to handle the increase in volume during the holiday season. READ ARTICLE |
INDUSTRY INTRODUCTION February 3, 2015UPS 4Q 2014 Earnings CallUPS will implement peak season surcharges in 2015 |
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Google competes with Amazon by offering same-day delivery servicesSJC FORESIGHT: 1 Year |
PUBLISHED SOURCE January 23, 2012"Amazon: Retailer, or Parcel Provider?", JOCGoogle 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 |
INDUSTRY INTRODUCTION March 28, 2013LA TimesGoogle testing same-day delivery service. READ ARTICLE |
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Velocity Express took costly risks leading to acquisitionSJC FORESIGHT: 5 Years |
PUBLISHED SOURCE October 2007NTLA Conference PresentationVelocity Express venture into regional parcel business is a risky strategy with negative implications. |
INDUSTRY INTRODUCTION February 2013"TransForce Acquires Velocity Express", JOCVelocity is sold to Transforce/Dynamex after incurring huge losses READ ARTICLE |
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Online orders can use same-day/next-day delivery if fulfilled locallySJC FORESIGHT: 12 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 October 2012Macy's, ToysRus, WalmartMacy's, ToysRus, Walmart testing this concept in select markets |
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James Welch appointed new YRC CEOSJC FORESIGHT: 17 Days |
PUBLISHED SOURCE July 4, 2011"Yes YRC Can Be Saved", JOCJames Welch is the most suitable candidate to replace retiring YRCW CEO, Bill Zollars. READ ARTICLE |
INDUSTRY INTRODUCTION July 21, 2011YRC WorldwideJames Welch Named CEO of YRC Worldwide READ ARTICLE |
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Carry-on baggage fees result in lower faresSJC FORESIGHT: 7 Years |
PUBLISHED SOURCE October 2003White Paper & Visit with members of U.S. CongressSeparating charges for check-in & carry-on bags from passengers fare will result in lower passenger fares. |
INDUSTRY INTRODUCTION October 2010Spirit AirlinesSpirit Airlines passengers fares are lower than other airlines & even total fares with baggage fees included are lower. |
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FedEx will merge Freight & National LTL into one networkSJC FORESIGHT: 1 Year |
PUBLISHED SOURCE April 2009Client PresentationsFedEx will combine Freight and National LTL into one network to handle regional and long haul service and announce by Dec 2010. |
INDUSTRY INTRODUCTION September 2010FedExFedEx announced merger of FedEx Freight and National LTL effective January 2011. |
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Airline fees for carry-on bags should be higher than for check-in bagsSJC FORESIGHT: 6 Years |
PUBLISHED SOURCE October 2003White Paper & Visit with members of U.S. Congress |
INDUSTRY INTRODUCTION August 2010Spirit AirlinesSpirit Airlines passengers charges $5 more for carry-on bags than for check-in bags. |
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Per-Bag fee limits carry-on baggageSJC FORESIGHT: 6 Years |
PUBLISHED SOURCE October 2003White Paper & Visit with members of U.S. CongressImplementing a per-bag fee to all bags could help limit overall carry-on items. |
INDUSTRY INTRODUCTION April 2010Spirit AirlinesSpirit Airlines announced plans to charge for carry-on bags that do not fit under the seat. |
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 ARTICLESJ 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 ARTICLESJ 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 RELEASEBrick 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 ARTICLESoon 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 ARTICLEUPS 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 ARTICLEFedEx names Richard Smith, Founder’s son, No. 2 at FedEx Express
READ ARTICLETransformation 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 ARTICLECarriers 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 ARTICLEJD 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 ARTICLEFedEx and UPS to offer deliveries on Sundays effective January 2020
READ ARTICLESmaller 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 ARTICLENumber 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 ARTICLEParcel 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 ARTICLEInternet 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 ARTICLEParcel 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 ARTICLEVelocity Express venture into regional parcel business is a risky strategy with negative implications.
Velocity is sold to Transforce/Dynamex after incurring huge losses
READ ARTICLEBrick 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 ARTICLESeparating 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 ARTICLEAs 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 ARTICLECharges 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