done with FedEx Custom Critical

jjoerger

Veteran Expediter
Owner/Operator
US Army
Steve,
I'm wonder if the flat rate program is comparable to other carriers' flat rate program.

The flat rate program is a sliding scale based on number of miles dispatched in a calender month. I believe it is all miles paid starting at $.90 a mile and going up to $1.25 plus FSC, currently $.4833.
So a solo can make $1.38 to $1.73 for all miles.
The three I have talked with all said they can hit the magic number to get the max pay. I believe it is 8000 miles for a solo.
 

greg334

Veteran Expediter
Thanks for the explanation, I have a clear picture of it now but how does it compare to other carriers who run tractors and their rates?
 

jjoerger

Veteran Expediter
Owner/Operator
US Army
According to Schneider's web site they pay $.90 plus FSC for all carrier directed miles, loaded and empty. Plus free Qualcomm.
 

nightcreacher

Veteran Expediter
Greg,Im looking at a company that is offering percentage contract.They say the fleet average loaded and empty miles is .97 all miles,plus 59cpm fsc,and they pay fsc on all dispatched miles.Solos can run between 2500 and 3000 miles a week,teams 6000 to 7000 if the wish to run that hard.Think I'm going to look into this farther.I can lease a truck from them,it does look good.
 

ATeam

Senior Member
Retired Expediter
Greg,Im looking at a company that is offering percentage contract.They say the fleet average loaded and empty miles is .97 all miles,plus 59cpm fsc,and they pay fsc on all dispatched miles.Solos can run between 2500 and 3000 miles a week,teams 6000 to 7000 if the wish to run that hard.Think I'm going to look into this farther.I can lease a truck from them,it does look good.

After the numerous warnings posted by drivers here and elsewhere against leasing a truck from a carrier that also dispatches your freight, that deal looks good to you?

Don't forget how common it is in arrangements like this for the freight to strangly slow in the final months of the lease when the drivers need money to complete the lease and gain ownership of the truck, instead of letting the truck go back to the carrier and leaving the driver with bad credit.
 

davekc

Senior Moderator
Staff member
Fleet Owner
Have to go with Phil's thinking on this. It is a rarity that these lease purchases work out. Doesn't mean one wont, but the odds are usually not in the drivers favor.
 

LDB

Veteran Expediter
Retired Expediter
I agree with the others on the lease from the carrier plan as a general rule. I have a suspicion Steve has the discipline to "put away for a rainy day" during the early years to supplement near the end if need be. Overall though it isn't a good idea.
 

x06col

Veteran Expediter
Charter Member
Retired Expediter
US Army
We have been with FDCC for 6 years. Speedlimters were mandated for White Glove to service ON and QC when those two Canadian provinces passed their laws. EOBR's will soon be a federal mandate. I have yet to receive a mandate to join SmartWay.

Six years, circa 04-05 depending on how ya do the math. I experienced Roberts sell off to a couple of principals prior to the fedup brand, each time the downward spiral for contractors became more steep.......until they (IMO) run enuff of us good ones away and became their nemisis. Too many good ones left with a better servicing idea for this business and look at the smorgusbord of equipment availability today. Tis truly a dynamic thing, depends on how quickly your bs meter pegs out.
 

Deville

Not a Member
Please keep in mind that they are not the only carrier that engages in that practice. They won't pay their own that higher rate for fear it will start higher requests for loads from their own contractors. Been that way for quite some time. It can be beneficial depending on what side of the curve you are on.

I was heading towards Manhattan yesterday, on the opposite side of the road was a Tractor pulling a FDCC trailer.The Tractor was an outside carrier. I could not get the entire name of the carrier, but he was NOT an FDCC contractor & he was local.
 

davekc

Senior Moderator
Staff member
Fleet Owner
It wouldn't be uncommon for them or UPS to use a outside source, especially on the east coast. Just the same a lot of broker loads come out over there as well.
Over in the Fed forum they are talking about critical loads going on flat raters or company trucks. That has been going on for awhile but is a little different than the brokers. Some couldn't see it then with their pom-poms in the way, but it is still there. Just becomes more noticeable if their freight slows.
Can't buy new trailers and have company drivers sitting around.
Just how that business model works.
On a side note, Landstar is a good outfit. Always have had a great relationship with them as a outside broker with their agents.
 
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Monty

Expert Expediter
May I ask, why do you love Landstar? What about it exactly do you love?

I love the fact I alone determine how successful I am .... there is no badgering to take freight that is not profitable.

An agent calls me ... ask's if I want XX load, it pays XX and is XX miles .. has to be there at XX ... do you want it, and can you deliver on time. It matters not if it's going 50 miles or 2,000.

Landstar does NOT use the Qualcomm to track your progress, rather the agents say, "If you encounter problems, let me know, otherwise I'll talk to you when you arrive."

My pay is there each Wed, without fail, and the rate will be EXACTLY as it was qouted, unelss they add something, as they will with this current load.

Fuel surcharges are paid at 100%, as are all accessorial charges, (like hauling away pallets .. sorry, devil made me do it!) :eek:

Wheter I make it or not is entirely my decision, the fact that I do NOT work the entire month of Janurary is no problem to them. (Janurary is reserved for Aruba!)

And with my wife retiring this December, I imagine there will be more blank spaces on my duty roster!

Also, for a Sprinter van, these are the mileage rates I have for the last few runs, and that is net, to the truck ...

1.29
1.43
1.33
1.34
1.44
1.30
1.38
1.26
1.37
1.96
1.28

That's all I have stored in the Qualcomm ....

Yes, I do like Landstar ....
 

ATeam

Senior Member
Retired Expediter
I love the fact I alone determine how successful I am .... there is no badgering to take freight that is not profitable.

Thank you for your response. For newbies and others who are interested in a comparison, my response is below.

I am a little confused by your statement that "I alone determine how successful I am...." I have seen and talked to Landstar drivers who were sitting longer than they were happy with, just like drivers with other carriers. If I alone could determine how successful I was with Landstar, I would determine that $500,000 a year in gross revenue would be about right, maybe a little more.

I know that is not your meaning. Could you explain further what your meaning is?

As far as no badgering goes, Diane and I have been irritated at times at FDCC by repeated load offers that we repeatedly turned down but did not feel badgered. The difference is that we felt no pressure whatsoever to say yes to a load offer that we did not want. We feel disrespected when our first answer is not accepted, but not badgered to take the load. The difference may be lost on some but it is an important difference.

However, if you say no to a load at Landstar and that is the end of it, that is a significant quality of life difference that indicates a level of respect that Landstar contractors (BCO's) are given and FDCC contractors are not.

However, however, I am not unfamiliar with some Landstar agents and they tell me that if a driver says no to loads too often (whatever too often means), it is a simple adjustment for the agents to write that driver off as a waste of time and simply stop calling. At FDCC, if a truck is in service and able to make the pick up, offers will be sent to it no matter what the agent or dispatcher thinks of the driver.

An agent calls me ... ask's if I want XX load, it pays XX and is XX miles .. has to be there at XX ... do you want it, and can you deliver on time. It matters not if it's going 50 miles or 2,000.

The process is essentially the same at FDCC, except the offer comes by an automated phone call or over the Qualcomm. It will be assumed that you can deliver it on time if you accept the load.

Landstar does NOT use the Qualcomm to track your progress, rather the agents say, "If you encounter problems, let me know, otherwise I'll talk to you when you arrive."

That is different than FDCC where trucks are tracked every minute of every day whether they are under load or not; and with electronic logging now built into every Qualcomm unit, the level of detail in the tracking is greater than ever.

When under load, the ability to track the truck is given to the customer which is part of the service and an incentive to use FDCC for customers who value that feature. Paper logs are out. Vehicle location and hours of service tracking have become one.

My pay is there each Wed, without fail, and the rate will be EXACTLY as it was qouted, unelss they add something, as they will with this current load.

So too with FDCC, except the day of the week is different.

Fuel surcharges are paid at 100%, as are all accessorial charges, (like hauling away pallets .. sorry, devil made me do it!) :eek:

So too at FDCC, except before 100% of the fuel surcharge is paid, the fuel surcharge money that is collected from all customers is somehow pooled and manipulated in a way that I do not fully understand.

It was explained to me once when a new fuel surcharge system was implemented but I did not pay attention because I did not feel the need to know. It did not matter to me then, and it does not matter to me now what the fuel surcharge is or how it is calculated. Diane and I accept and decline loads based on what the total pay per mile is for all miles driven (loaded and deadhead).

They could pay $1.90 per mile in fuel surcharge and $0.10 per mile for the freight tariff; or they could pay $0.10 per mile fuel surcharge and $1.90 a mile for the freight tariff. Either way it is $2.00 a mile total pay for the load and that is the number we will focus on when considering an offer.

Wheter I make it or not is entirely my decision, the fact that I do NOT work the entire month of Janurary is no problem to them. (Janurary is reserved for Aruba!)

And with my wife retiring this December, I imagine there will be more blank spaces on my duty roster!

Diane and I spent all of January and the first half of February this year out of service on vacation in Florida. No one at our carrier cared. We went back in service in mid-February and hauled freight as if we had not been out of service at all.

Also, for a Sprinter van, these are the mileage rates I have for the last few runs, and that is net, to the truck ...

We are in a different kind of truck so a pay comparison would be apples to oranges.

Thank you again for your reply. Very interesting and helpful.

You did not say anything about the Landstar agents who not only dispatch freight but also own trucks, and knowing of lucrative loads, dispatch that freight to the trucks they own before even thinking about dispatching it to an ordinary BCO.

While similar practices are becoming evident at FDCC with their company owned trailers and the tractors that are paid a flat rate to pull them (see badger's comments in item 2, post 46 above), it seems little different from what goes on at Landstar and has been permitted and known for years.
 
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greg334

Veteran Expediter
I am a little confused by your statement that "I alone determine how successful I am...." I have seen and talked to Landstar drivers who were sitting longer than they were happy with, just like drivers with other carriers. If I alone could determine how successful I was with Landstar, I would determine that $500,000 a year in gross revenue would be about right, maybe a little more.

I know that is not your meaning. Could you explain further what your meaning is?

Phil, without a doubt you missed the point completely. When he said "I alone determine how successful I am ..." it has nothing to do with the revenue but the freedom you and others seem to not have. Yesterday I had 12 offers but turned down everyone because I have something to do this week and if this was FedEx, I would fear termination of my lease (WHICH they still do) but I don't with Landstar.

IF someone is sitting with Landstar, it isn't because there is a lack of work but rather because they are not using the system well enough to get work to move the truck.

As far as no badgering goes, Diane and I have been irritated at times at FDCC by repeated load offers that we repeatedly turned down but did not feel badgered. The difference is that we felt no pressure whatsoever to say yes to a load offer that we did not want. We feel disrespected when our first answer is not accepted, but not badgered to take the load. The difference may be lost on some but it is an important difference.

Well practical experience is FedEx will hound and threaten. IF you don't take a load, it is or else for some of those contractors. It hasn't changed at all and with the dispatch system, it is even more of an issue.

I can see the trade off of integrity with some contractors who justify the harassment by revenue produced.

However, if you say no to a load at Landstar and that is the end of it, that is a significant quality of life difference that indicates a level of respect that Landstar contractors (BCO's) are given and FDCC contractors are not.

I think you get the picture.

However, however, I am not unfamiliar with some Landstar agents and they tell me that if a driver says no to loads too often (whatever too often means), it is a simple adjustment for the agents to write that driver off as a waste of time and simply stop calling.

Yep and some agents are a**holes and it only take one refusal. BUT there are agents who look at you as part of them and will call you or some even will work to find you something just for asking.

ON THE OTHER HAND a smart LS BCO will have a do not haul list for those agents who tend to not be the best for that BCO. I have one and you would be surprised who and why I have some on that list.

At FDCC, if a truck is in service and able to make the pick up, offers will be sent to it no matter what the agent or dispatcher thinks of the driver.

Not true Phil, there are reasons why the system won't send all the trucks 'who qualify' an offer.

The process is essentially the same at FDCC, except the offer comes by an automated phone call or over the Qualcomm. It will be assumed that you can deliver it on time if you accept the load.

Not really. The difference is that an agent is dealing with one truck and most of the time it is a phone call. There are times when offers come over the Qualcomm but sometimes those are blanket offers to the fleet.

That is different than FDCC where trucks are tracked every minute of every day whether they are under load or not; and with electronic logging now built into every Qualcomm unit, the level of detail in the tracking is greater than ever.

When under load, the ability to track the truck is given to the customer which is part of the service and an incentive to use FDCC for customers who value that feature. Paper logs are out. Vehicle location and hours of service tracking have become one.

Actually my customer can track me, and so can most if they are told how. There is no difference between the systems but LS is a bigger customer than FedEx for Qualcomm.
 

highway star

Veteran Expediter
Owner/Operator
Yesterday I had 12 offers but turned down everyone because I have something to do this week and if this was FedEx, I would fear termination of my lease (WHICH they still do) but I don't with Landstar.

If you need a week off, why wouldn't you go out of service and just not get offers?
 

Monty

Expert Expediter
re: Turning down loads ...

A lot of our, (Landstar Express America), freight, (like everyone's), comes from bid boards ... and I will refuse it if going somwhere such a Milford, Ut ... where I know I can not get freight.

The half dozen, or so, agents I actully work with on a regular basis, all know I will NOT refuse an in-house load, no matter the pay or destination. I will protect in-house freight at any cost. Luckily all our in-house freight is high revenue.

And, yes, agents are in the business to book, and dispatch freight. I am in the business of hauling it. We work well together. There is no ill feelings if I dont want to take a bid load to Utah.

Matter of fact, last time I was in Laredo, I authorized one of them to bid me a load to Milwaukke at .95 cents .. and lost it! They know I will not haul below that, so I drove to San Antonio to get loaded. And no, there was no compensation. The decision to deadhead was mine alone.

As to the Qualcomm, remember I am in a B van, I do not do logs, so there is no reason to "track" me .... matter of fact, unless there is some communication between me and Landstar, location is only updated automatically once an hour.

Personally, I know of no Landstar agent that own's trucks in Express America, they may, but I can't be worried even if they do. My concern is MY van, not theirs. While at Jones/HotShot Express I knew of several agents that had fleets running, and they gave me freight freely, often times to the detrement of their own trucks.

An agent based company, Landstar, Jones, Mercer, etc is as close to being "independent" as you will ever be.

Remember, I was at Roberts during the changover to Roadway Services, and saw the battles between Dave Hodge and Jim Snyder ... and though I have no knowledge of what FCC does now, a penalty of refusing a load meant going to the bottom of the list. And foreign trucks had seniority, hence if I was home in Dayton and finlly made it to the top, because they had finally gotten all the foreign trucks out of the express center, shame on me if I refused a load no matter the reason!
 

ATeam

Senior Member
Retired Expediter
... and though I have no knowledge of what FCC does now, a penalty of refusing a load meant going to the bottom of the list. And foreign trucks had seniority, hence if I was home in Dayton and finlly made it to the top, because they had finally gotten all the foreign trucks out of the express center, shame on me if I refused a load no matter the reason!

Those two practices, while real at the time, were abandoned long ago.
 

Dreamer

Administrator Emeritus
Charter Member
re: Turning down loads ...

A lot of our, (Landstar Express America), freight, (like everyone's), comes from bid boards ... and I will refuse it if going somwhere such a Milford, Ut ... where I know I can not get freight.

The half dozen, or so, agents I actully work with on a regular basis, all know I will NOT refuse an in-house load, no matter the pay or destination. I will protect in-house freight at any cost. Luckily all our in-house freight is high revenue.

And, yes, agents are in the business to book, and dispatch freight. I am in the business of hauling it. We work well together. There is no ill feelings if I dont want to take a bid load to Utah.

Matter of fact, last time I was in Laredo, I authorized one of them to bid me a load to Milwaukke at .95 cents .. and lost it! They know I will not haul below that, so I drove to San Antonio to get loaded. And no, there was no compensation. The decision to deadhead was mine alone.

As to the Qualcomm, remember I am in a B van, I do not do logs, so there is no reason to "track" me .... matter of fact, unless there is some communication between me and Landstar, location is only updated automatically once an hour.

Personally, I know of no Landstar agent that own's trucks in Express America, they may, but I can't be worried even if they do. My concern is MY van, not theirs. While at Jones/HotShot Express I knew of several agents that had fleets running, and they gave me freight freely, often times to the detrement of their own trucks.

An agent based company, Landstar, Jones, Mercer, etc is as close to being "independent" as you will ever be.

Remember, I was at Roberts during the changover to Roadway Services, and saw the battles between Dave Hodge and Jim Snyder ... and though I have no knowledge of what FCC does now, a penalty of refusing a load meant going to the bottom of the list. And foreign trucks had seniority, hence if I was home in Dayton and finlly made it to the top, because they had finally gotten all the foreign trucks out of the express center, shame on me if I refused a load no matter the reason!

Notanewbie,
Just finally dawned on me who you are , duh! LoL. Glad to have you here Monty!


Dale



Posted with my Droid EO Forum App
 

greg334

Veteran Expediter
If you need a week off, why wouldn't you go out of service and just not get offers?

Because the way the system works, for me to accept my regular load that I get every week, I have to be in service which means I get calls all the time. The hassle came when I would go back into service and had to wait a few hours for my status to up date for the agent to send me the info.
 
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