$1 looks to be working out....

[lugnut1]

Looks like that $1 is working out for FedX.
A couple of key points….
Analysts sees mid-single-digit volume growth in the company's Express and Ground segments, which account for more than 80 percent of revenue. Analysts are keen to see, however, if consumers -- amid signs the economic rebound is stalling -- are opting for less expensive delivery options.
Memphis, Tennessee-based FedEx this month raised its quarterly dividend by one penny to 13 cents per share.
The freight segment likely will return to profitability after combining its FedEx Freight and FedEx National LTL (less-than-truckload) operations, the company has said.
"We consider shares of FedEx to be undervalued," he said, pegging a $112 per share target versus Tuesday's $89.13 close

 

[layoutshooter]

Looks like that $1 is working out for FedX.
A couple of key points….
Analysts sees mid-single-digit volume growth in the company's Express and Ground segments, which account for more than 80 percent of revenue. Analysts are keen to see, however, if consumers -- amid signs the economic rebound is stalling -- are opting for less expensive delivery options.
Memphis, Tennessee-based FedEx this month raised its quarterly dividend by one penny to 13 cents per share.
The freight segment likely will return to profitability after combining its FedEx Freight and FedEx National LTL (less-than-truckload) operations, the company has said.
"We consider shares of FedEx to be undervalued," he said, pegging a $112 per share target versus Tuesday's $89.13 close

Yeah, for them, not us. It is driving our rates down to a point where I would be better off going broke. I would make more. As stated before, carriers are in business for themselves and the shareholders, not us. We have to find away to look out for ourselves in spite of what they do.

 

[Moot]

...I would be better off going broke. I would make more.

You could then be eligible for all sorts of wonderful government programs.

 

[nightcreacher]

Who ever said the carrier was out for the owner opp.THey jkust dont know how to treat a partner,and thats what you are.They find the freight,you haul it,and after all expenses,you are suppose to make a living.What they are doing is fine for the fleet owners,if you ran 20 trucks and each made only 100 bucks a week afetr expenses,you would be making a great living,but if your only truck makes 100 bucks,see you in the poor house

 

[osumike33]

Fedex - all huge companies - are looking out for the stock holders first, second and third; employees, contracters are at the bottom of that list. I know there are tons of threads about the $1.00 flat rate...just curious if that is just for cv's, if it is plus a fsc, and if straight trucks & tractors have a similar flat rate?

Looks like that $1 is working out for FedX.
A couple of key points….
Analysts sees mid-single-digit volume growth in the company's Express and Ground segments, which account for more than 80 percent of revenue. Analysts are keen to see, however, if consumers -- amid signs the economic rebound is stalling -- are opting for less expensive delivery options.
Memphis, Tennessee-based FedEx this month raised its quarterly dividend by one penny to 13 cents per share.
The freight segment likely will return to profitability after combining its FedEx Freight and FedEx National LTL (less-than-truckload) operations, the company has said.
"We consider shares of FedEx to be undervalued," he said, pegging a $112 per share target versus Tuesday's $89.13 close

 

[ATeam]

Fedex - all huge companies - are looking out for the stock holders first,...

Let's think about that a little deeper. The theory is that a corporation exists to benefit its owners, i.e. the shareholders, but something seems to have shifted in that regard.

Executives at big banks are paying themselves obscene bonuses that in no way benefit the shareholders. In many other industry sectors, if not all others, the focus is so much on quarterly results that executives hardly dare think long term any more. They manage quarter to quarter, not so much to benefit shareholders, but to produce numbers that will keep them off the hot seat when earnings season rolls around.

 

[osumike33]

Suppose we're off subject, but often times those huge bonuses are in the form of shares, too...and the stockholders, either directly or indirectly, keep the CEO's in their position. Bottom line is that drivers/employees are at the very bottom of the food chain, and less and less is making it's way down. Trickle down? More like being peed on from above....if people at the bottom (or middle) have no money to buy things, things don't get made or sold and it's a vicious cycle..one that one party doesn't seem to appreciate or care about.

Let's think about that a little deeper. The theory is that a corporation exists to benefit its owners, i.e. the shareholders, but something seems to have shifted in that regard.

Executives at big banks are paying themselves obscene bonuses that in no way benefit the shareholders. In many other industry sectors, if not all others, the focus is so much on quarterly results that executives hardly dare think long term any more. They manage quarter to quarter, not so much to benefit shareholders, but to produce numbers that will keep them off the hot seat when earnings season rolls around.

 

[greg334]

Not to pee on anyone here but it was explained to me a while back that FedEx isn't obligated to one single contractor for any reason - because they are contractors.

What this means is that ... yes ... they are looking out for themselves, they will compensate the CEO and others within the company but if they need you, they will offer you the amount of money they feel they can afford to pay you and nothing beyond that. By bringing up what the company's management makes or how they are increasing their profits seems to be a bit silly because they are under no obligation to even offer you work.

I have in the past week been ripped about my comments and I have explained not just in PM, emails but also in person that I am honest and open about how I operate so others don't make the same mistakes I did. ONE of those mistakes was my thinking that the company is my partner, or my employer or my provider - making me nothing but a slave to that company.

One of the issues I see is that the veterans, many who are complaining may not have an exit strategy in their 'business plans' or if they do, then it may be a case that it is outdated or simply enough that they expect to get the same somewhere else or afraid to make the move.

A lot of people built their business plan predicated on the notion that this will last forever or that one company is the only one for them.

In all honesty, I learned one important thing - the shipper isn't looking for the best looking truck or the truck with the uniformed people in it but one that can haul the freight for a reasonable amount of money and get it there safely. WITH the advent of CSA, they are more confident with the cheap looking truck that cost $15k as they are with the $200k that has the fancy stripes and chrome on it to get the job done.

NO longer does FedEx service their customer's exclusively and in many times in the past they didn't have "qualified" white glove personal take care of that all important white glove load, even high value loads. They learned it was impossible to be all they can be to all the customers and may now getting their 'divisions' harmonized to make more efficient money while reaching out to the outside to cover what they can't. A lot like the US postal service coming to the conclusion that UPS and FedEx who were their competition, both can provide a service to them at a reduced cost.

There is this idea that we have a divide with the quality of people who work for many companies, FedEx included, with newbies and not newbies. This divide is something of a joke because a lot of quality people are newbies while a lot of 'vets' are sloppy idiots when it comes to customer service. I read somewhere about securing loads which was really interesting because the other day I pulled into a rest area while a team with a placard hazmat load was doing a "load inspection". When I looked in the box as the wife was climbing out of the box with the grill and the propane bottle, I notice there wasn't a strap in sight or a load bar out of its holder which showed me a lack of professionalism and a huge liability for the company. I've seen them before a few years back so they were not newbies. So if FedEx is running flat rate, it may be they could attract people who are willing to live with what we used to get (which was a fraction of what others used to get before us) and do it in such a way that the quality of service is the same or in some cases better.

 

[Steady Eddie]

Looks like that $1 is working out for FedX.
A couple of key points….
Analysts sees mid-single-digit volume growth in the company's Express and Ground segments, which account for more than 80 percent of revenue. Analysts are keen to see, however, if consumers -- amid signs the economic rebound is stalling -- are opting for less expensive delivery options.
Memphis, Tennessee-based FedEx this month raised its quarterly dividend by one penny to 13 cents per share.
The freight segment likely will return to profitability after combining its FedEx Freight and FedEx National LTL (less-than-truckload) operations, the company has said.
"We consider shares of FedEx to be undervalued," he said, pegging a $112 per share target versus Tuesday's $89.13 close

I doubt if the flat has has anything to do with the above. FECC is so far down in this mix, that this flat rate has no effect on the over all percentages.

 

[layoutshooter]

Some newbies are good right from the start. Some are not. Some seasoned expediters are good, some are not.

Not all trucks are the same. A data logger does not a TVAL truck make. Neither does recorded maintenance logs only.

There is just more to it. Maybe customers are not looking for certain services any more, most are. I have not run into many who did not need the full range of service that trucks similar to mine can provide. That is because of the type of customer we tend to provide service for.

The needs still exists. FedEx will decide how to meet that need.

The solution may or may not look the same as it does now. That is THEIR business. Mine is to make it here, with FDCC if possible, or where ever else I can.

OR, hit the lottery. I just need a ticket.

 

[osumike33]

My original question was just if the $1 flat rate applied to cv's or if they went to a similar flat rate for all their equipment, and is it graduated up due to the size of the equipment? Curious as to what, if any, affect it will have on rates in general, since they're such a large company. Or is it just a small blip that only affects those that drive for them?

Some newbies are good right from the start. Some are not. Some seasoned expediters are good, some are not.

Not all trucks are the same. A data logger does not a TVAL truck make. Neither does recorded maintenance logs only.

There is just more to it. Maybe customers are not looking for certain services any more, most are. I have not run into many who did not need the full range of service that trucks similar to mine can provide. That is because of the type of customer we tend to provide service for.

The needs still exists. FedEx will decide how to meet that need.

The solution may or may not look the same as it does now. That is THEIR business. Mine is to make it here, with FDCC if possible, or where ever else I can.

OR, hit the lottery. I just need a ticket.

 

[jjoerger]

The $1 flat rate is for C and D trucks. $1 plus FSC all miles.
CV's get $.85 + FSC for loaded miles.
C, D and E trucks can either be percentage based or flat rate based.