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chrisp390
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5X And FX This Holiday Season

Wed Nov 26, 2014 9:39 pm

This holiday season ecommerce sales will be up 15-20% over last year, something that should send record volumes of packages through 5X and FX. I notice however that despite the fast growth in ecommerce FX and 5X have kept their aircraft fleet counts fairly flat over the past few years, 5X with no new aircraft orders and FX with orders to replace older frames. So my question is how do they handle this year over year increase in packages without expanding their fleet?
 
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LOWS
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RE: 5X And FX This Holiday Season

Wed Nov 26, 2014 9:45 pm

Presumably, they are able to expand their trucking capacity as needed. I have seen FedEx trucks in the US with three(!) trailers.
 
teva
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RE: 5X And FX This Holiday Season

Thu Nov 27, 2014 12:33 am

Quoting LOWS (Reply 1):
Presumably, they are able to expand their trucking capacity as needed.

that's one part of the answer.
another part is an increased use of the bellies of passenger flights
they can use some stored aircraft too.
and of course, for one month, they lease aircraft from other operators, such as Atlas
Ecoute les orgues, Elles jouent pour toi...C'est le requiem pour un con
 
mcoatc
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RE: 5X And FX This Holiday Season

Thu Nov 27, 2014 1:30 am

Quoting chrisp390 (Thread starter):
So my question is how do they handle this year over year increase in packages without expanding their fleet?

Ironically, I asked myself the same question just a few minutes ago as I watched FX land, and I was about to start the same thread.

Quoting LOWS (Reply 1):
Presumably, they are able to expand their trucking capacity as needed. I have seen FedEx trucks in the US with three(!) trailers.


Unfortunately, trucks do not help with time-sensitive air shipments, especially now that so many items from Amazon come with free 2 day shipping.

Quoting teva (Reply 2):
and of course, for one month, they lease aircraft from other operators, such as Atlas

This is more what I was wondering. So many of the "surge" operators that 5X leases in are no longer in business, and the few that are still around can only supply so many airplanes. If memory serves correct, UPS had to apologize last year due to many items not being delivered on time. Seeing that World, Evergreen, and Centurion/Skylease are no longer in business, it seems like the options are a bit limited.
 
lhpdx
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RE: 5X And FX This Holiday Season

Thu Nov 27, 2014 1:56 am

UPS 747 and several 767 at PDX this evening...Fedex the usual 3 Md-11 so far.........
 
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tb727
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RE: 5X And FX This Holiday Season

Thu Nov 27, 2014 1:59 am

I do know they are asking for some charter work on routes from other smaller freight companies. A few small operators weren't invited to the party last year and we all know about the mess 5X had. By spring they had already asked for everything available in the 727/737 size for peak. I'm glad I am not not doing it this year, it used to be fun to do but it's always one crappy weather night for it to become a complete clusterbleep.
Too lazy to work, too scared to steal!
 
32andBelow
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RE: 5X And FX This Holiday Season

Thu Nov 27, 2014 2:25 am

Most freighters only fly one turn per day. Do they increase during the holidays?
 
UA444
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RE: 5X And FX This Holiday Season

Thu Nov 27, 2014 3:40 am

If they had to, I'm sure FX could slow or stop DC-10 retirements if they had the need and use the new 767s as growth a/c.
 
DiamondFlyer
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RE: 5X And FX This Holiday Season

Thu Nov 27, 2014 3:58 am

Quoting mcoatc (Reply 3):
Unfortunately, trucks do not help with time-sensitive air shipments, especially now that so many items from Amazon come with free 2 day shipping.

Actually, they do. And now that Amazon has added so many distribution centers, the odds of being able to use ground to meet the 2 day commitment, is even easier. They do add lift though, when needed, I know last year UPS sent Atlas and Centurion to PHX quite a bit.

-DiamondFlyer
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HPRamper
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RE: 5X And FX This Holiday Season

Thu Nov 27, 2014 4:10 am

Quoting 32andBelow (Reply 6):
Most freighters only fly one turn per day. Do they increase during the holidays?

Most FX and 5X aircraft turn twice per day. I'm really not sure where this quite common impression of one turn a day or one bank a day comes from but it's not been the case in many many years.
 
chrisp390
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RE: 5X And FX This Holiday Season

Thu Nov 27, 2014 7:50 am

Amazon may have increased their warehouse number to allow for more 2 day delivery by ground but the overall ecommerce industry as a whole seems to be growing significantly. Why would FX and 5X not use this as an opportunity to expand their fleet and bring more of the work in house?
 
PanHAM
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RE: 5X And FX This Holiday Season

Thu Nov 27, 2014 7:57 am

There is FX and there is FedexGround which are 2 Independent operations.

FX air may still use trucking on City pairs that have high volumes but short distances but that is not so common on overnight shipments in the US as it is in Europe.

On a 2 day product that's another Story.
Was Erlauben Erdogan!!!
 
blueflyer
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RE: 5X And FX This Holiday Season

Thu Nov 27, 2014 8:18 am

Quoting chrisp390 (Reply 11):
Why would FX and 5X not use this as an opportunity to expand their fleet and bring more of the work in house?

For one thing, it doesn't make sense financially for FedEx and UPS to have enough aircraft in-house to cover the peak Christmas demand if a significant number of these aircraft will sit idle the remaining 11 months of the year. They have the fleet they need for these 11 months. For the 12th month, they increase the number of turns per aircraft, they fill each aircraft to maximum volume, and they charter additional lift.

For another, shipping by air is but one piece of the business for FedEx and UPS. They both offer a complete supply-chain solution that includes fulfillment warehouses located in several cities around the world, allowing shippers to rely more on cheaper-to-operate trucks than planes.

In that line of business, they actually compete with Amazon. Amazon does third-party fulfillment out of their own warehouses too, so whenever Amazon opens a new warehouse to be closer to their customers, perhaps 100 other businesses have a new warehouse closer to their customers too!

The recent drop of oil notwithstanding, planes are much more expensive to operate than trucks and warehouses. The time definite shipping industry is focusing its efforts on flying freight as little as possible. E-commerce sale growth of 15% to 20% will not translate into a similar increase in the number of packages shipped by air.
 
wjcandee
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RE: 5X And FX This Holiday Season

Thu Nov 27, 2014 8:40 am

Quoting mcoatc (Reply 3):
Unfortunately, trucks do not help with time-sensitive air shipments, especially now that so many items from Amazon come with free 2 day shipping.

FIrst, the two have plenty of lift, except for the last few days when charter fills it out fine.

The issue last year was sorting and weather delays at the start of the rush period, which UPS never dug out of, combined with inadequate space to park during Irops, combined with a decision not to deliver on Christmas day. There were minimal issues at FedEx; although there is anecdotal stuff in some markets, really the issue was almost-entirely UPS.

This year, Amazon has cut its volumes to FedEx and UPS by something like 75%. In major markets, they now have their own line-haul between centers, and their own service that hauls from the centers to the Post Office, which does the last mile. I got a Next Day package that way last week. The Postal Service has stepped up, and is doing great for them, anecdotes from unreasonable folks to the contrary. More than 80 percent of my Amazon is coming by USPS. Rarely, a drop-shipped item will come from the manufacturer by UPS or FedEx or FedEx Ground. Similarly, WalMart is moving almost everything through FedEx Ground when possible, and FedEx Express in the rare instance when it's necessary. About half of their ground shipments are coming by FedEx Smartpost, which has really stepped up its operation, which gives the last mile to the mailman. Finally, a lot of E-Commerce folks are using services like NewGistics for as much as possible, which again does the line-haul to its own sorting centers and between those centers, then dispatches shipments from there to post offices. NewGistics uses trucks leased from Ryder and staffed by Ryder-employee drivers, running a proprietary line-haul network managed by Ryder -- i.e. outsourced to an expert company, and very, very scalable. I think these three trends this year should take a lot of load off of the FedEx/UPS networks, giving them room to take the extra business coming from the overall growth in E-Commerce.

In short, there is a lot of e-commerce delivery that's moving in unlabelled trucks for Amazon, Walmart and customers of NewGistics. That should help a lot this year.

[Edited 2014-11-27 00:43:04]

[Edited 2014-11-27 00:44:03]
 
wjcandee
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RE: 5X And FX This Holiday Season

Thu Nov 27, 2014 8:44 am

Quoting blueflyer (Reply 13):
For one thing, it doesn't make sense financially for FedEx and UPS to have enough aircraft in-house to cover the peak Christmas demand if a significant number of these aircraft will sit idle the remaining 11 months of the year. They have the fleet they need for these 11 months. For the 12th month, they increase the number of turns per aircraft, they fill each aircraft to maximum volume, and they charter additional lift.

FedEx also has certain older, less-efficient aircraft that mostly sit around, but get ramped up for the rush season.

[Edited 2014-11-27 00:45:30]
 
md11sdf
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RE: 5X And FX This Holiday Season

Fri Nov 28, 2014 9:21 pm

I have been hanging around the airport, here in Louisville (KSDF) for many years at Christmas time.
I have pictures and video of Flying Tigers 747's, smoking DC-8's from a number of Cargo Carriers from the late 1980's to last year. Over time, the Carriers UPS would use for their "Extra Sections" were regulars but, one by one have had financial problems and went out of business. The only ones from "the original group" that are still around are Kalitta, Southern Air (Transport) and ATI.

Evergreen International......GONE!
Gemini Air Cargo......GONE!
Arrow Air.......GONE!
Fine Air......GONE!
Emery Worldwide......GONE!
Tower Air Cargo......GONE!
World Airways.....GONE!

That's a WHOLE lot of "lift" that is no-longer available. Last year, we had Centurian air Cargo/SkyLease here, but I read that they too are having difficulties and may close their doors. So, this busy Christmas Season, WHO will we be seeing in Louisville to carry the extra volume? I can't wait to find out!!
LOUISVILLE KENTUCKY: Where your camera looks just like a stinger missile to the Airport Police!!
 
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fxramper
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RE: 5X And FX This Holiday Season

Fri Nov 28, 2014 9:43 pm

Came home on a 77F FX today. EWR is doing fine as is all other FX hubs. The ramp up will start first week of December so not often visted ramps will see up gauged a/c. Also, we kill 5X on air cargo, so whatever. Happy Holidays.


  
 
DiamondFlyer
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RE: 5X And FX This Holiday Season

Fri Nov 28, 2014 10:01 pm

Quoting fxramper (Reply 16):
Also, we kill 5X on air cargo, so whatever

If you "kill" them on air cargo, explain the operations in SDF.

-DiamondFlyer
From my cold, dead hands
 
HPRamper
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RE: 5X And FX This Holiday Season

Fri Nov 28, 2014 10:25 pm

Quoting DiamondFlyer (Reply 17):
If you "kill" them on air cargo, explain the operations in SDF.

FX is far and away the larger cargo airline. The SDF Worldhub is impressive in its own right but MEM hub for FX is much larger.

UPS is first and foremost a shipping company that also has an airline. FedEx is the other way around.
 
DiamondFlyer
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RE: 5X And FX This Holiday Season

Fri Nov 28, 2014 10:40 pm

Quoting HPRamper (Reply 18):
FX is far and away the larger cargo airline. The SDF Worldhub is impressive in its own right but MEM hub for FX is much larger.

I agree, but to say kill, would imply that FX is shutting down 5X and that simply isn't/won't happen.

-DiamondFlyer
From my cold, dead hands
 
blueflyer
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RE: 5X And FX This Holiday Season

Fri Nov 28, 2014 10:41 pm

Quoting DiamondFlyer (Reply 17):
If you "kill" them on air cargo, explain the operations in SDF.

The UPS Air fleet is less than half the size of FedEx Express'. UPS relies more on subcontractors than FedEx, but that doesn't change the overall result in term of air operations.

The difference comes almost entirely from the domestic market. Outside the US, there isn't that much difference between the two companies when it comes to their air network, and they cancel each other out on a market-to-market basis.
 
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fxramper
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RE: 5X And FX This Holiday Season

Fri Nov 28, 2014 10:55 pm

Quoting DiamondFlyer (Reply 17):
If you "kill" them on air cargo, explain the operations in SDF.

Serious?

I was speaking overall. Their air 'hub' is SDF. Why would you try and pull this card? Do you know nothing of air cargo?

Oh wow, ups beats FX at Louisville in the air. 4 other FX hubs in the US do more packages that ups domestic or international.

Wake up CNN.  
 
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tb727
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RE: 5X And FX This Holiday Season

Sat Nov 29, 2014 1:14 am

Quoting fxramper (Reply 21):
I was speaking overall. Their air 'hub' is SDF. Why would you try and pull this card? Do you know nothing of air cargo?

Having flown freight for both out of all the big domestic hubs and having no dog in the fight, I do have to say FX's flight ops was significantly more impressive even though, yeah, SDF's "Worldport" was a little better laid out.

Like you kinda said, it's always been explained to me that FX was an airline with a trucking company and 5X was a trucking company with an airline.
Too lazy to work, too scared to steal!
 
DiamondFlyer
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RE: 5X And FX This Holiday Season

Sat Nov 29, 2014 1:19 am

Quoting fxramper (Reply 21):
Serious?

I was speaking overall. Their air 'hub' is SDF. Why would you try and pull this card? Do you know nothing of air cargo?

No, just pointing out pretentious it is a FedEx employee would speak like that. Everyone knows FX has a bigger network in the air, no one denies it. But to suggest that FX literally, kills, 5X, is a laughable suggestion.

But hey, what do I know, I only work for a contract freight company.

-DiamondFlyer
From my cold, dead hands
 
JohnJ
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RE: 5X And FX This Holiday Season

Sat Nov 29, 2014 1:31 am

Back to the regularly scheduled broadcast, I see a Kalitta 747 came into Memphis tonight from O'Hare. It's a pretty safe bet that has something to do with FX and the holiday rush - though interestingly, UPS has a small hub at MEM that has seen their 744s in the past.
 
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fxramper
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RE: 5X And FX This Holiday Season

Sat Nov 29, 2014 1:38 am

Quoting DiamondFlyer (Reply 23):
No, just pointing out pretentious it is a FedEx employee would speak like that. Everyone knows FX has a bigger network in the air, no one denies it. But to suggest that FX literally, kills, 5X, is a laughable suggestion.

In the air, FX destroys ups. They have taken market share away for like 16 quarters in a row despite slowing down their a/c order. So again, as stated in the previous posts, the air to freight war, FX is killing it. This is an aviation website and we discuss aviation and airplane related matters not movements on trucks. I've worked for both companies by the way.
 
HPRamper
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RE: 5X And FX This Holiday Season

Sat Nov 29, 2014 4:21 am

Quoting tb727 (Reply 22):
Having flown freight for both out of all the big domestic hubs and having no dog in the fight, I do have to say FX's flight ops was significantly more impressive even though, yeah, SDF's "Worldport" was a little better laid out.

The Worldport at SDF was more designed for the aircraft UPS is using now. The growth at UPS over the past couple of decades has largely been on the ground, domestically, so SDF has been able to handle volumes as UPS has routed freight through places like RFD, ONT, PHL and even CAE. The FedEx hub at MEM has had to adjust to colossal changes in aircraft size and wingspan which is no small feat - 727 to 757, the addition of the 777 and now 767.

Quoting DiamondFlyer (Reply 23):
But to suggest that FX literally, kills, 5X, is a laughable suggestion.

It was a figure of speech. UPS isn't going out of business. However, it's fairly common knowledge that FX is making a lot of very correct moves right now and is performing better in a number of categories.
 
PITrules
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RE: 5X And FX This Holiday Season

Sat Nov 29, 2014 8:12 am

Quoting fxramper (Reply 16):
Also, we kill 5X on air cargo

And 5X "kills" FX on profit margin and absolute profit.

Quoting fxramper (Reply 25):
In the air, FX destroys ups

Not really. While FX keeps more of their volume in house (hence the larger airline) UPS uses more airline belly freight and contractors. Its just a different model and does not mean FX is destroying 5X in the air. Especially in Europe where there is no comparison between 5X and FX.

Quoting tb727 (Reply 22):
I do have to say FX's flight ops was significantly more impressive even though, yeah, SDF's "Worldport" was a little better laid out.

My first time through MEM I must say I was just not impressed with the facilities. More aircraft movements than SDF, sure. But It seems like just a bunch of hodgepodge additions to remote ramps and the sort building. I was shocked to see the main sort buildings don't even have walls. Contrast that to the UPS SDF facility which has 88 aircraft nose-to-building positions and, unlike MEM, is placed efficiently between the parallel runways.

Quoting HPRamper (Reply 26):

The Worldport at SDF was more designed for the aircraft UPS is using now. The growth at UPS over the past couple of decades has largely been on the ground, domestically

This is just not true. Over the past couple decades UPS has grown substantially more in the air than on the ground, and substantially more internationally than domestically.

[Edited 2014-11-29 00:44:29]
FLYi
 
wjcandee
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RE: 5X And FX This Holiday Season

Sat Nov 29, 2014 12:43 pm

Quoting md11sdf (Reply 15):
So, this busy Christmas Season, WHO will we be seeing in Louisville to carry the extra volume? I can't wait to find out!!

Well, as DHL continues to screw its most-efficient air services provider, ATSG, that company's carriers have worked diligently to find wet and dry lessees and ad-hoc business for their 48 767s and 8 757s. (Four of those 757s are ATI combis, which are well-utilized and increasingly-utilized by the US military.) The CEO of ATSG has said that all its available aircraft are fully-committed during the holiday season, so I expect that you will see ATI and ABX 767s, and perhaps some 757s, operating for UPS and perhaps for FedEx. DHL uses about a third of the ATSG aircraft, and others are on wet and dry leases elsewhere, so it will be interesting to see how many aircraft will be on UPS/FedEx assignments, but it's at least 5 and probably closer to 10. ATI used to fly DC8s in the UPS holiday mix, but those are all parked now.

Atlas is operating 767s these days, so perhaps you will see some Atlas 767s employed, as well as what will certainly be some of their 747s for UPS.

Kalitta Air is obviously going to be in the mix with 747s, and in years past we have seen some Kalitta Charter (Doug Kalitta's airline) 727s used.

You left Murray Air off the list. They operated DC8s for UPS during the holiday season. They are now National Airlines, and have a couple of 757s and 3 remaining 747s. Perhaps we will see some of them...

You did mention Southern, which operates some 737 (4) and 777 (4) freighters for DHL. I assume those are fully-committed for the holiday, even though their web site seems to suggest that they are available for ad-hoc charter. (The snazzy Southern web site calls he 737-400 the "bestselling air freighter in the history of aviation". Um...uh...No. Laughable, actually, but I'm sure that AEI is happy that it finally found a few customers for its conversion...) They still have three 747-400 freighters, having parked all their 747-200s. Cargo 360 merged with these guys a few years ago. Perhaps we will see one or more Southern 747s in the UPS holiday network.
 
blueflyer
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RE: 5X And FX This Holiday Season

Sat Nov 29, 2014 3:47 pm

Quoting wjcandee (Reply 28):
Atlas is operating 767s these days, so perhaps you will see some Atlas 767s employed, as well as what will certainly be some of their 747s for UPS.

I thought all of Atlas' 767 freighters were owned by and operated for DHL?
 
Allee
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RE: 5X And FX This Holiday Season

Sat Nov 29, 2014 4:00 pm

DHL owns the 5 767-200F that Atlas currently operates. In 1Q 2015, N784AX, 785AX, 786AX and 790AX go to Atlas as well.

There are now 5 Southern Air 737-400s operating for DHL. Cincinnati-Austin started up last week. Additional 734s for DHL are arriving in 2015.
 
SELMER40
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RE: 5X And FX This Holiday Season

Sat Nov 29, 2014 4:28 pm

Quoting chrisp390 (Thread starter):
...how do they handle this year over year increase..

I'm surprised that no one is talking about the B767-300F(WL) FedEx has leased (were with LAN Cargo). N68079 is flying now, N68078 ready to fly and N68077 coming soon. http://flightaware.com/live/flight/N68079 Flightaware has a current picture.
Teaching this old dog a new trick
 
blueflyer
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RE: 5X And FX This Holiday Season

Sat Nov 29, 2014 4:41 pm

Quoting SELMER40 (Reply 31):
I'm surprised that no one is talking about the B767-300F(WL) FedEx has leased (were with LAN Cargo).

They're on three-year leases. Not additional seasonal lift, although I'm sure it'll help right away.
 
DiamondFlyer
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RE: 5X And FX This Holiday Season

Sat Nov 29, 2014 5:29 pm

Quoting Allee (Reply 30):
Cincinnati-Austin started up last week

They also fly CVG-PHL and CVG-STL-MCI, with the 737, if I remember right.

-DiamondFlyer
From my cold, dead hands
 
HPRamper
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RE: 5X And FX This Holiday Season

Sat Nov 29, 2014 5:33 pm

Quoting PITrules (Reply 27):
This is just not true. Over the past couple decades UPS has grown substantially more in the air than on the ground, and substantially more internationally than domestically.

You misread, although my wording was vague. What I meant was that domestically, the majority of UPS growth has been on the ground. I would add that If you lump FedEx together into one company including FedEx Ground, the vast majority of their domestic expansion has been on the ground as well. However, as FedEx Express is a standalone company and their only one with aircraft I'm only referring to them in this thread.
 
Allee
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RE: 5X And FX This Holiday Season

Sat Nov 29, 2014 6:12 pm

Quoting DiamondFlyer (Reply 33):

And CVG-ROC-BDL (CVG-JFK-BDL on Mondays)
 
jetblueguy22
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RE: 5X And FX This Holiday Season

Sat Nov 29, 2014 9:46 pm

A lot of the changes have been delivery wise. 5X has increased it's delivery capacity to a large degree this year. Plus like others have mentioned most of the air shipments sent by companies like Amazon are 2 day shipments. That allows capacity to be planned a lot better. UPS is set up to be able to carry a lot of it's shipments via semi truck as well. Next days are a big part of the business. But 2 days are the bread and butter. If one hub is full we can send it to a different one and still have it trucked in on time.

Quoting fxramper (Reply 16):
Also, we kill 5X on air cargo, so whatever. Happy Holidays.

You may kill us fleet wise. But I guarantee our ability to transport stuff over short distances is unmatched. I have a friend that overnighted something to MSP from GFK on FX. Went to Memphis and up to MSP. 5X? We put in a feeder and truck it to MSP. Heck of a lot cheaper.

Quoting HPRamper (Reply 18):
UPS is first and foremost a shipping company that also has an airline. FedEx is the other way around.

I never really understood this until I started working for UPS. It's amazing how much volume we can truck vs fly.

I know at my small center we are already starting to see an increase on the air side. Monday is the unofficial Christmas season kick off. Volume traditionally explodes on Cyber Monday. Get ready boys and girls, the peak freight season is almost in full swing  .
Pat
Look at sweatpants guy. This is a 90 million dollar aircraft, not a Tallahassee strip club
 
wrenchon727
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RE: 5X And FX This Holiday Season

Sat Nov 29, 2014 9:55 pm

FDX is going to turn more flights this year and have less aircraft layover. Probably fling more usps (amazon) day freight. I usually have a layover or two , this is the first peak in a while were I don't have a layover starting Tuesday.
 
chrisp390
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RE: 5X And FX This Holiday Season

Sun Nov 30, 2014 12:18 am

Any idea if FX and 5X hedge their fuel or will be paying the current prices?
 
wjcandee
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RE: 5X And FX This Holiday Season

Sun Nov 30, 2014 12:54 am

Quoting wrenchon727 (Reply 37):
Probably fling more usps (amazon) day freight.

There will be a ton of Everyman-sending-Priority-Mail-stuff-to-Grandma on FX's day runs, but very little Amazon. Amazon, in major markets, is going its own line-haul between distribution centers and then from distribution center to the USPS DDU. If it's coming via USPS, all the USPS is going to do is the last mile, as opposed to the early days of Amazon where they just sent everything Priority Mail.
 
HPRamper
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RE: 5X And FX This Holiday Season

Sun Nov 30, 2014 2:08 am

Quoting wjcandee (Reply 39):
There will be a ton of Everyman-sending-Priority-Mail-stuff-to-Grandma on FX's day runs, but very little Amazon. Amazon, in major markets, is going its own line-haul between distribution centers and then from distribution center to the USPS DDU. If it's coming via USPS, all the USPS is going to do is the last mile, as opposed to the early days of Amazon where they just sent everything Priority Mail.

At SEA, Amazon is the biggest shipper for FX overnight and 2-day, dwarfing anyone else and it's not close. This week we're talking 7-9 53-foot trailers daily bulk loaded full. Roughly double what it was two weeks ago, and will be increasing in the coming weeks. The idea behind the distribution centers is to minimize using shippers like FX for anywhere they can get overnight on truck. SEA FX doesn't send really anything Amazon closer than California or Montana. Everything in the Northwest I surmise Amazon is moving themselves and using the USPS for delivery. This system is I'm sure repeated in many regions.
 
chrisp390
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RE: 5X And FX This Holiday Season

Sun Nov 30, 2014 3:18 am

Quoting HPRamper (Reply 40):

Where are most of their packages fromSeattle destined for?
 
wjcandee
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RE: 5X And FX This Holiday Season

Sun Nov 30, 2014 4:13 am

Quoting HPRamper (Reply 40):
The idea behind the distribution centers is to minimize using shippers like FX for anywhere they can get overnight on truck. SEA FX doesn't send really anything Amazon closer than California or Montana.

You're right. I am a terrible example because I am in NYC, and most of the stuff I want, other than stuff being drop-shipped from the manufacturer, is available in one of several warehouses (Delaware, Indiana, New Jersey, etc.) within less-than-12-hours' driving distance for Amazon's line-haul. Heck, they did a Next Day delivery to me using the line-haul-and-USPS system the other day, and it was in my hands by 11am. (That's a big benefit for me of the USPS last-mile delivery. FedEx and UPS typically deliver residential Amazon in the afternoon in NYC and Long Island (or 6pm for UPS). USPS gets it to us in the morning, usually.) For those with fewer distribution centers clustered nearby, or less-encompassing centers, some airlift is going to be necessary.

The Amazon that has disappeared is the UPS Ground and FedEx Ground stuff...
 
HPRamper
Posts: 5133
Joined: Sat May 14, 2005 4:22 am

RE: 5X And FX This Holiday Season

Sun Nov 30, 2014 5:57 am

Quoting chrisp390 (Reply 41):
Where are most of their packages fromSeattle destined for?

All over the country. Amazon itself serves thousands of companies, so the companies based in any certain region will have their items shipped from a nearby distribution center. Seattle has massive distribution centers naturally, considering Amazon is based here, but in addition to shipping tons of Amazon freight out, it also arrives by aircraft as well from distribution centers elsewhere.
 
MKIAZ
Posts: 282
Joined: Thu May 01, 2014 5:24 am

RE: 5X And FX This Holiday Season

Sun Nov 30, 2014 7:13 am

Amazon (and most of the other large e-commerce players) have been investing heavily in new fulfilment centres over the past few years.

The reason for this is basically to avoid air shipping costs.

Amazon also has extremely advanced algorithms for determining where items go. So unless you are ordering an item that they are nearly out of stock on, it is very very likely that it will ship via some ground method.

And when an item does need to go air, it is usually shipped from a FC near MEM (or SDF). This is so it can be brought via truck to MEM and only need to travel the leg to the destination via plane. This is no doubt cheaper for amazon (and FX) than shipping an item from say BOS to MIA that needs to fly BOS-MEM-MIA.
 
wjcandee
Posts: 9988
Joined: Mon Jun 05, 2000 12:50 am

RE: 5X And FX This Holiday Season

Sun Nov 30, 2014 10:12 am

Quoting HPRamper (Reply 40):
At SEA, Amazon is the biggest shipper for FX overnight and 2-day, dwarfing anyone else and it's not close.

And for what it's worth, WalMart, which continues to grow rapidly in the online space, seems over the last year to have shifted almost everything to FedEx Express and FedEx Home Delivery/FedEx Smartpost. It is extremely convenient, and saves a lot of money, for a Manhattanite like me to order basics (everything from cold medicine to cereal to paper towel to drain opener to peanut butter to coffee) from Walmart online. It comes quickly, it costs a heck of a lot less than in any store in the City, there is much, much more selection than stores in the City, and there's no transportation cost involved, which there would be if I had to go get it. A lot of that used to come by UPS. Now, it's almost all coming by the two FedEx companies, with Home Delivery giving way to Smartpost in a lot of circumstances. And Smartpost has really upped their game, although they are not as consistent at moving their stuff through their center and to the Post Office as Amazon Fulfillment Services's in-house network has become. Smartpost stuff still occasionally disappears into the ether for a day or two while being "in transit" from Edison, NJ to Manhattan or Long Island, then magically reappears. I assume that it's sitting in a trailer that has been pulled away from the loading dock (and thus "departed"), but hasn't been hauled away from the facility.

I'm looking forward to seeing a lot of WalMart moving on FedEx Express during the last couple of weeks of the season, because you guys really didn't have any significant issues last year, and certainly got it done for our family.
 
lhcvg
Posts: 1255
Joined: Mon May 25, 2009 2:53 pm

RE: 5X And FX This Holiday Season

Mon Dec 01, 2014 12:08 am

Quoting DiamondFlyer (Reply 8):
Quoting mcoatc (Reply 3):Unfortunately, trucks do not help with time-sensitive air shipments, especially now that so many items from Amazon come with free 2 day shipping.
Actually, they do. And now that Amazon has added so many distribution centers, the odds of being able to use ground to meet the 2 day commitment, is even easier. They do add lift though, when needed, I know last year UPS sent Atlas and Centurion to PHX quite a bit.

To echo that, if you're in Cincinnati, to my knowledge everything UPS via air gets trucked up from SDF with NO air service whatsoever direct to the Cincinnati market. I think that makes perfect sense for them with the massive Worldport just a hundred-odd miles down the road, and I would submit that is a perfect synergy between trucks and air to move express packages.
 
bw50505
Posts: 472
Joined: Fri Apr 20, 2012 2:53 am

RE: 5X And FX This Holiday Season

Mon Dec 01, 2014 12:22 am

FedEx has a Kalitta 742 on MEM-HNL today. It was one of two CKS 742 that arrived in MEM for the cargo ramp up, what route is the other to be used on?
 
wjcandee
Posts: 9988
Joined: Mon Jun 05, 2000 12:50 am

RE: 5X And FX This Holiday Season

Mon Dec 01, 2014 1:30 am

Quoting bw50505 (Reply 47):
FedEx has a Kalitta 742 on MEM-HNL today. It was one of two CKS 742 that arrived in MEM for the cargo ramp up, what route is the other to be used on?

Today it's SJU.
 
DiamondFlyer
Posts: 3461
Joined: Wed Oct 29, 2008 11:50 pm

RE: 5X And FX This Holiday Season

Mon Dec 01, 2014 1:42 am

Quoting LHCVG (Reply 46):

To echo that, if you're in Cincinnati, to my knowledge everything UPS via air gets trucked up from SDF with NO air service whatsoever direct to the Cincinnati market.

Even BNA, has no UPS air service, other than a small, token feeder flight everynight inbound to SDF. Doesn't make sense to fly something that short.

-DiamondFlyer
From my cold, dead hands

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