I would like to respond on behalf of Con-Way NOW in an effort to clarify some of the information that has been presented (this is an excerpt from an upcoming newsletter as written by Michelle Potter, President).
Yes, there have been some some contract changes as it pertains to rates and fuel. Here are the facts and reasons for the changes:
As fuel prices rose, so did our phone volumes. We heard and understood our O/O's pain and as a result worked diligently to reach out to our customer base in an attempt to secure competitive fuel surcharge structures. It’s simple to argue that if the customer won’t concede to the rate structure we desire, that we just shouldn’t do business with them, but it’s not realistic. Removing just one volume customer from our network of customers can collapse the entire balance we’re always striving to achieve.
So here lies the challenge. We’re all too frequently focused on living and dying per shipment rather than focusing on the big picture. As a result we discriminate against our customers in load selections and cause the domino effect. As a means to alleviate that issue, we’ve implemented the mileage based fuel structure for our van and straight truck fleet. No longer will it require inquiries about how much is going to be paid per load for fuel as it’s the same rule across the board and all customers are on an equal playing field. The fuel matrix that was designed was very well considered and analyzed and took into consideration fuel pay that occurred during 2005. We ensured that average MPG’s were taken into consideration (vans 13MPG & straights 10MPG), as well as what the standard fuel operating expenses were for our fleet prior to fuel prices escalating. Also understand that there are many instances where we are not paid from the customer the fuel that we pay out. Will they find that on some loads they would have done better on the old program? Yes. Will they find that on some loads they will do better on the new program? Yes. Remember that the objective is to simplify and provide clarity to their fuel pay while ensuring that on every load their pay will be compensatory to their costs.
The final change is the pay structure change for D teams to $1.21. There is a high demand from our customer base for shipments requiring D teams. We belive that this rate changes will position ourselves to effectively recruit and retain for this very important niche that often times warrants supporting two separate incomes as opposed to the ideal single family income and to further financially support the teams currently in our fleet.
Hope this helps clarify some of the questions on this thread. For our current O/O - if you need further clarification pls contact recruiting or safety.
Lori Blaney
Director Recruiting/Safety
Con-Way NOW
800-950-7670 X3247
[email protected]
