The longer the economy continues the way it is, the more the customer will used to ground transportation, said Ron Lee, president of TransGroup Worldwide Logistics, largelydomestic Seattlebased forwarder. can offer greater varieties of shipping options and our sales force is better trained and better at crossselling. FedEx has rolled out the extension to miles only piecemeal, however, because it requires earlier dropoff times and the company is trying to be careful to not cannibalizing its premiumpriced express services.

We are looking at radical changes that will not be reversed, said this logistics executive. Weve seen the move to ground services and, yes, we do believe it is permanent shift, one that will hold true in recovery, said John Fellows, chairman and chief executive of DHL in the Americas. The longhaul LTL truckers are actually showing dramatic declines. The shipments certainly dont show up in reports from the countrys largest longhaul LTL carriers.

domestic market, surface operators are sending new and more aggressive message to air specialists they plan to keep the shipments. Yellow Freight reported just percent gain in its LTL shipments in the No. We would prefer to use air freight, but weve become pretty good at putting freight on trucks, he said. Robinson. Ground distances are increasing, said Satish Jindel, head of the Pittsburghbased SJ Consulting. LTL unit in the country, Frederick Smith, chairman of FedEx Corp., insisted in recent conference call with analysts.

Ground is being guaranteed and with better service you have certainty for ground delivery. FedEx Freight, the combination of the old American Freightways and Viking Freight regional truckers that have been incorporated into the FedEx fold, threw its weight behind the shift in with FedEx Freight Next Day Plus. Airborne Express, for instance, recently expanded its Ground Delivery Service and the American unit of DHL Worldwide Express is also plotting buildup of its own ground service.

Broughton says the air shipping will come back to airlines should first look at where the shipments have gone, says one industry observer. Ground distances are increasing, said Satish Jindel, head of the Pittsburghbased SJ Consulting. It is complementary and not competitive in any way. FedEx also says its expanding new Home Delivery unit of FedEx Ground, the former RPS, also is on track to make profit in the fiscal year, which starts in less than year.