New Prices for smoother cash flow

2:59 AM |



Understanding the two terms individually, ground freight refers to transportation of parcels and cargos through land from the point of origin to the destination point. Logistics on the other hand includes the management and control of the resources or goods being transported in order to ensure safe, quick and timely deliveries to the final consumer. If not to the final consumer, as it may not be possible due to water bodies or large distances, trucks or trains make deliveries to air or sea ports where the bulk is then transported. Ground freight shipping requires an average transit time of three to 10 days, depending on the pickup and delivery locations The main reason it has gained dominance over air or ship transport is affordability and easy transportation particularly in developing countries where the infrastructure may not be fully developed.
FedEx, the leading name in ground freight logistics has decided on a price change for FedEx ground offerings. Over the last three years FedEx Ground has improved transit times for more than half of the shipping lanes they serve, from one city to another. This has led to sooner delivery of parcels, improved customer satisfaction and has allowed it to gain a leading edge over others. Also to improve its credit position, FedEx ground services collect money at the time of delivery, providing service to customers without extending the credit period and keeping its cash flow position smooth. However, it was experiencing difficulties when it had to align payments between all three segments of FedEx express. Thus it introduced dimensional weight pricing on shipment of 3 feet ounce or more which is defined as “a common industry practice that sets the transportation price based on package volume–the amount of space a package occupies in relation to its actual weight.” Thus it organizes the operation for FedEx express. 
The companies in competition with each other in the ground and freight logistics under NEC and those quoted on the stock exchange include a list of 21 companies among which is Union Pacific Corporation. Union Pacific Corporation (UPC) owns transportation companies. Its principal operating company, Union Pacific Railroad Company, links 23 states in the western 66% of the country. It has the highest annual revenue recorded of 21,963.00 with a price to earning ratio set at 19.54 and annual net income of 4,388.00. The next in line is C.H. Robinson Worldwide, Inc. with an annual revenue of 12,752.08, price to earnings ratio set at 22.21 and annual net income of 415.90. With these two companies tied up in bottle neck competition, the latter has a higher P/E ratio which attracts investment from the potential shareholders, though its annual revenue is lower but its shares are worth a higher resale value at the stock market. For more information on financial trends among the best competing with each other, visit Bidnessetc.com.

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