With the growth these carriers are showing, they just cannot continue to send everything through a hub. Industry experts say that will pressure the market s main domestic air carriers, Emery Worldwide and BAX Global, to structure their networks more efficiently and add more cost-saving surface transport. But those carriers deride the limits on the FedEx service the freight has to be palletized or unitized by the shipper and there are minimum charges and say they suggest FedEx will only build on its existing customer base. They re telling the customer they re only going to take the Utopia-type freight. I m not sure you can say they re a serious contender for heavy freight.
Freight comes in all types of sizes and shapes.
If you re only going to take one kind of freight, then the customer is going to have to make decisions about whether to break up his freight, Piazza said. But Asmus claims new freight customers will give FedEx a new audience for its foundation express business, and he suggests they may get a bundled pricing offer. These are the traditional freight shippers who we couldn t approach before. We always offer them the full portfolio of services, he said. The limits, he said, will allow FedEx to handle the freight more efficiently.