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Express-1 losing Ford Account

simon says

simon says

Veteran Expediter
Charter Member
I came across this quite by accident- trying to find some real time information about the decline in truck transport volumes over the fall period (late 3rd qtr. to present). Apparently Express-1 announced this on Nov. 19.

"US premium transport service provider Express-1 Expedited is to lose its primary contract for dedicated services, involving the delivery of parts for Ford, from March 2, 2009. Read more
http://www.transportintelligence.com/content/industry-sectors/automotive/"

Not sure why, since I cannot access the entire article unless I fill out the form, blah, blah...
but I am certain this is not good news...at least for Express-1 or the possibly the industry as a whole.
What I did find was a piece in 'Logistics Management' that the ATA (American Trucking Assoc.) announced truck volumes down 3% in Oct. from .9% in August, and 1.9% in September. I really want to see the Nov. figures- I would not be surprised if they were up to at least 5%...Just a comment for those interested...that new career is coming faster than anticipated.
 
Jack_Berry

Jack_Berry

Moderator Emeritus
it is the dedicated group losing an account not the expedited group. see story below.

Express-1 Expedited Solutions, Inc. (AMEX:XPO) today announced that its operating subsidiary, Express-1 Dedicated has been informed that its primary contract for dedicated services would cease effective March 2, 2009.

The contract covers service to Ford Motor Company, is administered through Schneider Logistics and was initially awarded to the Company in May of 2003. The Express-1 Dedicated team consistently performed at a superior level for service, as evidenced by the multiple awards presented by the contract customer for outstanding service.

At this time, the Company is in the preliminary stages of analyzing the impact of this loss of business on the Express-1 Dedicated business unit and its employees. The Company is hopeful that all employees will be retained by the new service provider and is working with a transition team to facilitate a smooth transition for all parties. As of October 31, 2008, the Company employed 35 full-time and 3 part-time non-union employees in its Express-1 Dedicated business unit.

Dedicated services have been provided on a daily basis with multiple pick-ups at Ford’s high velocity parts distribution center in Evansville, Indiana with nightly unattended deliveries throughout the region to local Ford Dealerships. The dedicated contract portion of business represents approximately ninety percent (90%) of the business volume within the Express-1 Dedicated business unit as measured in revenue. On a prospective basis, the contract called for approximately $3.8 million in revenue for the 2009 service year.

While the Company is still evaluating whether it will remain viable to continue stand-alone operations in Evansville after this transition, its management team currently anticipates shutdown costs associated with this cessation to be minimal since the employees and building lease are anticipated to be transitioned to the new contract provider.

Commenting on the loss of business, the Company’s CEO, Mike Welch, stated, “We are all obviously disappointed with the news that the contract business has been awarded to another service provider. Brian Glaser and his team have managed this operation in an exemplary manner over the past five years, winning numerous awards and recognition from the contract customer for their excellent customer service. While we are all saddened by the news, we are encouraged that the loss was due to economic considerations and not to the service levels of our operations. At this time, our focus is on how to assist in the successful transition of our employees to the new contract provider and in successfully completing our commitment to service through the transition date.

With the loss of this contract business, our reliance on the automotive sector will continue to decline. At the present time, we anticipate automotive related accounts, including domestic and foreign manufacturers, will represent less than fifteen percent of Consolidated Express-1 Expedited Solutions revenue, after the expiration of this contract.”


on another subject, the local farm and const. manufacturer in town has turned its 30 million dollar yearly expediting program over to company who handles that kind of frt. could be nlm but my contact did not know the name.
 
Moot

Moot

Veteran Expediter
Owner/Operator
Simmon, this is old stuff and irrelevant. Its the end of the world and we don't have time to rehash this crap. Get with the program before we are all dead. The end is near.
 
davekc

davekc

Senior Moderator
Staff member
Fleet Owner
Anyone hates to lose business and it will likely effect everything they do regardless of whether it is the expedite division or not.
However, I hardly think it would be the end or demise of E-1.
Is pretty much old news though.
 
simon says

simon says

Veteran Expediter
Charter Member
No problem... I never made any editorial comment, other than it cannot be good news for the industry. The most severe downturn in 26 years, and some act like it is not happening...The above post concerning vans is more to the point, instead of some these ridiculous comments that are not serious. I drive a straight, and I wonder if it will be profitable. P.S. this comment not posted at anyone in particular!
 
OntarioVanMan

OntarioVanMan

Retired Expediter
Owner/Operator
Maybe constant was the wrong word choice....considering I DH less and I take "almost" twice as much time off now compared to 8 years ago...and manage the Approx. the same yearly income...I figure I am up or holding even...sorry I didn't get into the details previously.

Who pead in your Cheerios to-day?:rolleyes:
 
P

pjjjjj

Veteran Expediter
Not to be negative.. but how would that translate into getting better? Will the 2 operations remain separate? Or will E1 OOs now have to compete with company trucks?
 
OntarioVanMan

OntarioVanMan

Retired Expediter
Owner/Operator
pjjjjj said:
Not to be negative.. but how would that translate into getting better? Will the 2 operations remain separate? Or will E1 OOs now have to compete with company trucks?
Click to expand...

We have 2 company trucks and one sprinter....ole fart drivers, on call , part timers....they will go out to local customers and bring back the freight to cross dock with an on route expedite truck for the rest of the journey...better then losing the whole load??

Additional we have a couple customers in the immediate area that will call in a1-10 truck order that picks on Thursday or Friday that delivers Monday....the company truck will bring them back to the warehouse and the appropriate trucks called in thru the weekend...
 
Last edited:
P

pjjjjj

Veteran Expediter
OntarioVanMan said:
We have 2 company trucks and one sprinter....ole fart drivers, on call , part timers....they will go out to local customers and bring back the freight to cross dock with an on route expedite truck for the rest of the journey...better then losing the whole load??

Additional we have a couple customers in the immediate area that will call in a1-10 truck order that picks on Thursday or Friday that delivers Monday....the company truck will bring them back to the warehouse and the appropriate trucks called in thru the weekend...
Click to expand...

Ok, but what now? They've bought the assets of an asset based company, so won't that mean there are many company trucks to share the wealth? Or will the 2 ops remain separate?
 
OntarioVanMan

OntarioVanMan

Retired Expediter
Owner/Operator
I believe they will be assimulated(Borg)..its good news for others as there will be one less expedite carrier to bid against!
 
Turtle

Turtle

Administrator
Staff member
Retired Expediter
The trucks at First Class are all owner/operators, same as at E-1.

Uhm, from the press release...
"They use the same operating system and the same model of owner operators as ours, so we foresee a very smooth transition." - Jeffy Curry, President of Express-1
 
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