Allen Webb 0

FedEx TNT Merger Will Limit Consumer's Choice

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FedEx TNT Merger Will Reduce Competition and Feeds into FedEx UPS Monopoly in the U.S Merger Will Limit Choice and Result in Rate Hikes for Consumers

FedEx and TNT announced an agreement to merge and were fast to highlight that the merger will be great for business, economy and job growth here in the U.S and overseas.

The joined press release revealed that FedEx will be acquiring TNT and like any other merger they made multiple promises from service improvements to job growth. But you have to look beyond the empty promises and review the consequences that this merger will have here in the U.S and abroad:

Limited Competition:
Consumers in the U.S will have one less choice when it comes to shipping their packages. This limited choice will feed into the current UPS and FedEx monopoly that often translate to higher prices and full control of the marketplace. This merger will eliminate the choice of TNT as a carrier, they will be absorbed by the giant money machine of FedEx that is known to raise their rates every year and squeeze customers. TNT in the other hand is a great choice, because their rates are often 30 to 50% cheaper that FedEx rates, they are often the under-dog but a great choice for small businesses and consumers with low budgets.

Job Loss:
Like any other merger, this acquisition will sooner or later translate into lay-offs of TNT workers, hub consolidations and loss of jobs. To maintain profitability, FedEx will not allow duplication of Routes, Hubs or Management Staff. They will consolidate teams, hubs and fleet in search for maximum profits. TNT staff will more likely be reduced and downsized in order to minimize cost.

Rate Hikes:
When competition is limited, consumers will be at the mercy of the carriers and pay whatever the asking price is. It is: supply and Demand economy. TNT is a growing competitor that is giving small businesses and consumers a choice beside UPS and FedEx. This merger will eliminate this choice and give FedEx and UPS full control of shipping rates. This will often translate in rate hikes and price fixing.

We ask that you look beyond the glamorous Press Releases and do your due diligence on behalf of your country and your moral conscience. We know that you may find it hard to stand up to the giant FedEx Lobbying power. Ask the tough questions, do what the European Union did to block the previous TNT merger with UPS: They saw the real consequences on their economy in job losses, price fixing and limited competition. Simply put this merger is not good for us here in the US; it should be scrutinized and stopped.

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