FedEx

Postal Service’s air cargo shift to UPS makes everyone a winner 

The U.S. Postal Service’s decision this week not to renew a contract with FedEx, worth more than $1.5 billion per year, for domestic air transport and award it to UPS after more than two decades actually benefits all three parties, according to industry analysts. 

At face value, the arrangement seems a blow for FedEx (NYSE: FDX), which will lose one its biggest customers when the existing contract expires on Sept. 29. And it raises questions about how UPS (NYSE: UPS) can make a decent profit...

https://www.freightwaves.com/news/postal-services-air-cargo-shift-to-ups-makes-everyone-a-winner

UPS wins air cargo contract with Postal Service, replaces FedEx

UPS will replace FedEx as the dominant provider of domestic air cargo for the U.S. Postal Service for the first time in more than 20 years. The express delivery giant on Monday announced that the Postal Service has awarded it a “significant” contract to move the majority of the mail agency’s air cargo in the United States.

The contract will take effect on Sept. 30 and calls for a 5.5-year minimum base term, according to the Postal Service. FedEx’s (NYSE: FDX) contract with the U.S. Postal...

https://www.freightwaves.com/news/ups-wins-air-cargo-contract-with-postal-service-replaces-fedex

FedEx initiates targeted layoffs; UPS sheds workers at Ontario airport 

FedEx Corp. is laying off an undisclosed number of workers across the organization, despite posting stronger-than-expected quarterly results last week, as the company strives to hit targets for right-sizing the company. Meanwhile, parcel delivery rival UPS (NYSE: UPS) will eliminate more than 300 positions at its regional air hub in Ontario, California, because of slower volume.

In an unrelated move, FedEx Supply Chain Solutions said it plans to release more than 300 workers at a Georgia...

https://www.freightwaves.com/news/fedex-initiates-targeted-layoffs-ups-shed-workers-at-ontario-airport

FedEx deactivates 17 more aircraft as cost controls pay off

FedEx has parked 17 more freighter aircraft since November and relinquished options to buy seven Boeing 767 cargo jets, part of a multiyear cost initiative that helped the parcel titan to better-than-expected operating profit in the third quarter despite lower revenue.

Besides being cautious with aircraft utilization and investments, the Express unit expects to increase savings and yields by turning a portion of the fleet into an extension of the company’s large U.S. and European...

https://www.freightwaves.com/news/fedex-deactivates-17-more-aircraft-as-cost-controls-pay-off

FedEx posts strong quarterly results

FedEx Corp. late Thursday reported adjusted earnings of $3.86 per diluted share in its fiscal 2024 third quarter, well above analysts’ estimates of $3.45 per share, sending shares up sharply in after-hours trading.

The company (NYSE: FDX) said cost cuts and efficiency improvements offset continued macroeconomic weakness. FedEx Express, the company’s air and international unit posted improved operating results despite lower revenue. FedEx Ground’s operating results increased due to lower...

https://www.freightwaves.com/news/fedex-posts-strong-quarterly-results

Parcel carriers still operating according to 1980s narrative

By Satish Jindel
The views expressed here are solely those of the author and do not necessarily represent the views of FreightWaves or its affiliates.

In many respects, the parcel market of 2024 still looks very much like that of 40 years ago when RPS broke into a practical monopoly of UPS. While transit time is faster for ground service, the service offerings, operational network and technology have largely remained unchanged.

For example, the transit time commitments for overnight express...

https://www.freightwaves.com/news/parcel-carriers-still-operating-according-to-1980s-narrative

FedEx pilots take harder line as contract dispute drags on

The board that sets the strategic direction for the pilots’ union at FedEx Express is projecting a united front after last week’s acrimonious debate over ending federal mediation of contract talks. The effort suggests there is more agreement than meets the eye and that aggressive steps are necessary to counter the company’s alleged intransigence. 

Despite strong membership divisions, there appears to be greater unity within the Air Line Pilots Association’s (ALPA) Master Executive Council as a...

https://www.freightwaves.com/news/fedex-pilots-take-harder-line-as-contract-dispute-drags-on

Power struggle within FedEx pilots union upsets contract talks

In a surprise maneuver last week, a rebel group of FedEx Express pilots forced union leadership to break off contract negotiations by requesting that federal authorities release the parties from mediation before the company could even respond to its latest counteroffer.

The petition to the National Mediation Board (NMB) went against advice from Air Line Pilots Association staff and the union’s governing body at FedEx’s airline, exposing the extent of union infighting that has continued since a...

https://www.freightwaves.com/news/power-struggle-within-fedex-pilots-union-upsets-contract-talks

FedEx pilots seek release from federally mediated contract talks

The union representing some 5,800 pilots at FedEx Express has asked the National Mediation Board to be officially released from mediation for the purpose of being able to go on strike against the company to achieve a new contract.

Air Line Pilots Association (ALPA) announced Friday that it asked the federal agency to declare an impasse in contract negotiations and move the process to binding arbitration. The request is designed to clear the way for a potential strike against the company in a...

https://www.freightwaves.com/news/fedex-pilots-seek-release-from-federally-mediated-contract-talks

How FedEx could win by losing its Postal Service business

FedEx would benefit from the partial, or complete, loss of its huge contract with the U.S. Postal Service because it would force the parcel delivery giant to downsize a bloated and expensive air transport network, which could help revive profitability, said Brandon Oglenski, who covers the company for Barclays Bank.

FedEx Express (NYSE: FDX) and UPS (NYSE: UPS) move similar quantities of domestic and international express packages, but because FedEx has a much bigger airline, it chases...

https://www.freightwaves.com/news/how-fedex-could-win-by-losing-its-postal-service-business

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