That's what I'm getting at. Just because the current contract expires in '08, does not mean that USPS will discontinue using FedEx for these services.
It's almost guaranteed that the contract will be renewed, or will evolve into something else, of even higher benefit to FedEx and USPS.
I, too have heard, that USPS is very pleased with not only the level of service, but that they also realize that no one else, including bigbrown, can provide the range of service and postal friendly procedures that FedEx can.
IMO, the risk of losing this business segment for FedEX will diminish to almost nothing, if it hasn't already, and the volume and type of services FedEx handles for them will only increase.
We haven't heard anything yet. Fedex will begin a nationwide program of reducing hours throughout it's ramp location. Consolidation of jobs and hours has begun. At our location with this program over 2000 hours per month have been cut so far. If you haven't seen it at your location, watch out. It's been such a success here they're taking it nationwide.
Know this, especially investors. If Fedex did not have the Postal business layoffs would have been company wide. It's the Post Office that saved our ass, the company does not deny this and has been upfront with the frontline employees. These cuts are in preparation for when this business is gone.
" Consolidation of jobs and hours has begun." That's been happening for some time.Some parts of the country have a hiring freeze and they don't replace due to attrition.I wouldn't call that a "layoff." I would call this a "layoff." http://biz.yahoo.com/fool/030210/1044885240_2.html "If you're overcome with a fear of flying, imagine a fear of not flying. Over the weekend, parcel delivery specialist UPS (NYSE: UPS - News) announced it will lay off 100 pilots over the next few months. The company already gave 19 pilots their 30-day notice and will let another 81 go before September." BTW,I heard that UPS is doing a rotating month long layoff with their drivers.I don't have a link to support this,just some scuttlebutt off the street. "It's the Post Office that saved our ass, the company does not deny this and has been upfront with the frontline employees. These cuts are in preparation for when this business is gone." That contract is a 7 year deal,expiration date 2008. http://money.cnn.com/2001/01/10/deals/fedex/index.htm
"Under the two seven-year agreements, FedEx Express, a subsidiary of Memphis, Tenn.-based FedEx, will transport postal service express shipments by air beginning in late August. That deal is expected to bring in $6.3 billion in revenue for FedEx over the seven years.
Separately, FedEx Express will have the option to place a self-service drop box in every postal service location. The company will test this service beginning in February before placing more than 10,000 drop boxes nationwide over the next 18 months, the company said. FedEx expects to bring in $900 million in drop-box revenue."