FedEx cuts forecast as air freight weakness hits profit

FedEx and UPS increase their shipping rates every year from 3 to 7% no matter what, may be they should revise their rates to allow people to ship more often. The USPS is becoming more and more relevant in the field with their flat rates and no fuel surcharges. FedEx is taking their customers for granted and they do not realize the impact of the economy on the consumer. They are a strong player, delivering great service but they should calibrate their rates to be in tune with the economy. An express letter from Boston To CA should not cost near $40.00 to ship! Volume is being shifted to TNT and USPS. FedEx needs to wake up, Fred can you hear me?

It seems it is all about the yield. FedEx may realize a higher yield by keeping rates high and parking inefficient aircraft. It would do no good to fly gas guzzling, maintenance intensive, half empty airplanes just to squeeze a few more packages into the system.

It is not FedEx’s responsibility to manage the economy of the United States, but rather make profits for its share holders. FedEx will do this with excellent service and maintaining its image as the best in the express business. Quality business will recognize that and use the services of FedEx for a long time to come.

Day late and a dollar short- the Express market has been diminishing since the invention of the fax machine. Here comes another ‘one time charge-off” in the multi-million dollar range…
The Freight segment has undergone massive management turnover during the last two quarters.
The only thing keeping FedEx above water is the labor-free Ground segment, outperforming all expectations..