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Non-Tech : The UPS Strike- Opportunity of the year?
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To: stockvalinvestor who wrote (15)8/15/1997 1:09:00 AM
From: Rubble   of 25
 
< FedEx is not taking on any new customers so it doesnt benefit them that much. >

FedEx may be turning down new accounts, but their volume is still up almost 50%. The rationale for turning away new customers is that there is a limit to the volume FedEx can handle, and they should reward the businesses that had been using FedEx before the strike. If businesses felt that they can easily switch over to FedEx whenever UPS can't deliver their packages, they'd have less incentive to use FedEx when things with UPS are rosy. If however the need for a contingency plan is instilled in companies, they'll probably want to open accounts with FedEx even after the Teamster dispute is resolved. Still it would be in FedEx' best interest to sign up new businesses now for 1 year+ contracts. Then at least FedEx could start to increase machinery and personnel without worrying about as huge a drop in business once the dispute is settled.
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