UPS vs FedEx-Comparing The Major Shipping Companies

UPS drivers are union employees. Their compensation and working conditions are determined by a collective bargaining agreement between UPS management and the Teamsters union.

FedEx Express drivers are non-union employees whose compensation and working conditions are determined by FedEx management. FedEx drivers are divided into three categories: FedEx Express, FedEx Ground, and FedEx Home Delivery (a division of FedEx Ground).

FedEx Ground drivers are independent contractors whose compensation is based on packages delivered and picked up. FedEx Home Delivery drivers are also independent contractors whose compensation is based on packages delivered; they do not make pick-ups.

 

With regards to the independent contractors, FedEx pays them based on production. They give them a check for the gross amount and it’s up to the driver to withhold his own taxes and fund his own retirement. The driver owns the vehicle and must make the loan payments, and pay for maintenance of the vehicle. He must pay for the insurance and the gas to operate the vehicle.

If the independent contractor wants to take a vacation, or a sick day, he must find his own replacement (usually from a temp agency). Also, an independent contractor can own more than one route; in this case he finds a subcontractor, who he pays a day rate, to drive that route.

There is some debate whether the independent contractor model is valid. The driver owns the vehicle but can only contract with FedEx. The vehicle and uniform have the FedEx logo, and the driver must use the FedEx tracking device for delivery confirmation. In essence, some would say the driver is independent in name only.

UPS Driver vs FedEx Drivers: One Driver In One Truck vs Three Drivers in Three Trucks

 

 

A UPS driver will deliver packages to both business and residential customers. He will deliver air packages that move by airplane and ground packages that move by tractor-trailer rigs. One driver in one truck delivers both air and ground packages to business and residential customers. In addition, a UPS driver will also pick up both air and ground packages. One Driver-One Truck.

FedEx Express drivers only deliver packages that move by airplane. They deliver to both business and residential customers. They only pick up packages that will ship by airplane. FedEx Ground drivers only deliver packages that are moved by tractor-trailer rigs. They only deliver to business customers. They only pick up packages that will ship by tractor-trailer rigs. FedEx Home Delivery drivers only deliver ground packages to residential customers. They do not make pick-ups. cek ongkir indah cargo logistik

With FedEx you get three different drivers in three different trucks delivering three different types of packages (air, ground business, ground residential).

UPS and FedEx: Response To 9/11 Attacks

 

Nowhere is the difference in business models more evident than in the aftermath of the September 11 terrorist attacks. After the attack the Federal Aviation Administration (FAA) grounded all airlines for a few days. UPS off-loaded the air packages from their planes and rerouted them through their ground system and got them delivered. The FedEx air packages just sat in their planes until the FAA lifted the ban.

FedEx couldn’t reroute their air packages because FedEx Express and FedEx Ground operate as two seperate companies. FedEx Express drivers are company employees who get paid an hourly wage. FedEx Ground and Home Delivery drivers are independent contractors who get paid per package.

Additionally, FedEx Express, FedEx Ground, and FedEx Home Delivery have their own seperate sorting facilities located apart from each other. There is no cohesiveness of operations like UPS.

UPS vs FedEx: What The Difference Means To Shippers

 

If you’re a shipper, UPS will pick up your packages, both air and ground, everyday at the same time by one driver. If you have too many packages to fit in the truck, another UPS driver from a neighboring route will be sent to finish the pick-up.

If you ship FedEx, you will need two pick-up times: one for air packages and one for ground packages. Two different drivers will come to your business at two different times. If the FedEx Ground driver can’t fit all your packages in his truck, then you’ll have to wait until the next business day for the rest of the packages to be picked up.

UPS vs FedEx: Letterbox Differences

 

UPS and FedEx letterboxes dot the landscape at industrial parks, commercial centers, and office buildings. The UPS letterboxes can take both air and ground letters and small packages. The FedEx letterboxes only take air letters and small packages, not ground.

UPS and FedEx are the major shipping companies for global commerce. Both are very efficient in moving goods from point A to point B. However different their operations and business models are, they both serve their customers successfully.

 

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