FDX

[alwaysbroke]

I was wondering when and if FDXCC will change the DH rate for D'units? With fuel sticking around $2.75 a gallon you would think with there record profits they could raise the DH rate a bit. It seems that 50% of all loads are discounted as well. I for one have refused more loads in 06' than i ever have due to low DH pay or discount rates. The contractor turnover is at an all time high, when will they realize if they would pay us 2006 rates that we would accept most frieght offered and overall moral would be better. I dont here many good comments about them anymore. They are becoming one of the worst paying companys out there all miles considered.At least JB,SWIFT,and all the others dont require much DH from last drop and close to if not more per mile w/surcharge than FDXCC. Oh well let the rich get richer and the poor get poorer seems to be the bottom line here...go ahead and give me your pumped up and most likely exagerated comments I can take it.

 

[x06col]

You are right.

 

[davekc]

I think alot of your complaints are issues with many companies. I don't want to get into a bash Fedex campaign, but change will only come when they start losing money. Remember that the owner operators loss is not necessarily their loss. I am sure Fedex in particular is feeling alot of pressure from competitors.
Even their WG division is under alot of pressure from Landstar and Panther. Until recently, they never really had a major threat from competitors. Both companies (Landstar & Panther) have deep pockets and are certainly making major investments and significant inroads into Fedex's stronghold.
It was bound to happen and now you are just starting to see the results of it. The other factor on business to business freight is soon to launch as well. UPS is just starting to roll out their expediting division. They have made it clear they are pursuing Fedex customers first for that one stop shop approach.
On the upside, Fedex will remain competitive and their stock is doing well. Will that translate into profitable O/O's? Only time will tell.




Davekc
owner
21 years
PantherII
EO moderator

 

[TeamDrivers2]

Rumor ??

I've been told several times that FEDCC is less than 2% of the Corps total number. I'd think maybe there might not be alot [or desire] to invest in a division with numbers that low. Wer'e kicking sum serious behinds out here , but , i'm talking with alot of tenured drivers who are seeing their worst times ever. Just dosn't seem to be any balance out here. Wer'e running around like crazy....and folks been sitting for days??.

 

[davekc]

My drivers have said they see alot of Fedex trucks sitting. But, that goes partially to the posters concerns. If some are running, then it becomes at what kind of rates. The poster said 50 percent of his runs are discounted. That would be a concern. The older ones may be sitting or boycotting that kind of freight because they know there is no profit in it. It is only a matter of time before discounted freight causes one problems. This probably goes hand in hand with the Fedex post on backhauls.




Davekc
owner
21 years
PantherII
EO moderator

 

[terryandrene]

I think you'd be surprised to know that FedEx Custom Critical accounts for .0083 percent, and growing, of corporate total revenue.

 

[Jack Jackson]

The contractor turnover is at an all time high, when will they
>realize if they would pay us 2006 rates that we would accept
>most frieght offered and overall moral would be better. I
>dont here many good comments about them anymore. They are
>becoming one of the worst paying companys out there all
>miles considered.At least JB,SWIFT,and all the others dont
>require much DH from last drop and close to if not more per
>mile w/surcharge than FDXCC.

If you are comparing JB Hunt and Swift( Truck Load Carriers) with The largest expedite Company in North America, you probably don't have any money or brains left anyway. Maybe you would be better off at Panther II were their marketing plan is " Find FedEx Custom Criticals customers and cut the rate". Good Luck

 

[Peace2All]

I used to work for them years ago. Your handle sort of speaks of what they did to me. In order to make money in this industry it is important for Owner/Operators to learn to say no to cheap freight. You cannot run on .50/mile. No, I am not talking just deadhead I am saying the load paid .50 a mile with deadhead. Are you crazy to accept a load like that? Yes. Because an owner/operator never recoups this. His or her time is not being paid for nor is he being paid the industry's average loaded pay per mile. Say what you will. I think people that say, "yes" to every load are a detriment to people trying to make a living. Where there are "Yes Men/Women" there is cheap freight and it will continue to pay crappy. This is why most cannot pay their taxes or for health care. Are you not worth more than this? What is wrong with this picture?

Just my opinion but the only reason you should accept a load like this is to get your truck in a better strategic position.

 

[greg334]

I am really puzzled by alwaysbroke’s comments.

Please explain to me how can FedEx CC limit the DH miles when they are not driving your truck and don’t have a clue where the next customer will come from?

I see it this way, if they could have a crystal ball and see where the runs are, they would own the market. There would not be a truck sitting anywhere and we would be millionaires in a matter of a few years. Come on, lets be real.

As for receiving DH pay, well what can I say – refuse the runs, either someone will get the run or they will come back to you with a better offer.

 

[davekc]

I think he is saying that they should raise the pay on DH, or don't have alot of DH on a discounted load. Not much profit in running these kinds of loads with any consistency, regardless of the company.
As to whether Panther Elite is cutting the rate on Fedex WG glove loads?
I would imagine they and others are. Apparently that approach is working.
I don't know why some would think Fedex has a lock on WG customers?





Davekc
owner
21 years
PantherII
EO moderator

 

[greg334]

ohhhh..... thanks

Well FedEx has the brand name, except UPS isn't far behind as you know and Panther I think is not far behind of UPS. The funny thing is I think we will see a lot more of contracted freight with more compeition.

 

[RichM]

Perhaps I missed something, when and how did UPS decide to get into the expedite market? Is it truly expedite,single express shipment straight through from pu to del or is it another one of the ltl carrier types saying we can do expedite.

 

[davekc]

Well FedEx has the brand name, except UPS isn't far behind as you know and Panther I think is not far behind of UPS. The funny thing is I think we will see a lot more of contracted freight with more compeition
=========================================
You are correct. Contracted freight will drop the rates based on past events. I concur that UPS is the biggest threat because they have the customer base already. Panther has Fenway behind them and don't discount Landstar. They are running alot of WG loads with reefers that they weren't doing last year.
What does that mean? More WG loads but ran at lower rates. Pretty much like any business, the more people that are in it, the cheaper the overall rate. Not sure on all, but a majority of our temp control loads have been former Fedex customers. Just sign of the times.





Davekc
owner
21 years
PantherII
EO moderator

 

[ACE]

RichM,

UPS does expedite straight thru just like FDXCC or any other expedite carrier. The reason I Know this we have carried some loads for them.

 

[Moot]

Does UPS Expedite have a fleet of O/O and vehicles or are they acting as a 3PL and using other carriers.

 

[davekc]

Like Ace we have hauled some of their loads. They use a combination of company and O/O trucks. I believe they just started the O/O part about six months ago when they bought Emery freight.
Certainly will be a player in the years to come.
Most of their current loads are business to business and WG type loads. They do very little with the cheap NLM auto freight.
Here is their link.
http://www.ups-scs.com/transportation/expedite_surface.html






Davekc
owner
21 years
PantherII
EO moderator

 

[greg334]

I have talked to two UPS expediters, they also do courier work going overseas. Both of these UPSers talked about their trips to Europe.

 

[Tennesseahawk]

I haven't seen any of their trucks, so I don't have proof of the o/o part of the business. This leads me to believe they're brokering loads. Of course, I can see this changing very quickly. So far, we've pulled two loads for them. Both to TX.

 

[davekc]

Alot of their O/O trucks still have Emery on them.
You are correct in that they do broker loads, and usually at pretty decent rates.






Davekc
owner
21 years
PantherII
EO moderator

 

[simon says]

Sorry- just have to ask: When did Jack Welsh become an expert on what makes people expert in business? He sure wouldn't have made my "quotable" business expert...

I believe UPS only brokers loads at this point. I know they are talking about adding their own division, but I suspect they will evaluate that very carefully as the market is already overcrowded. If most reputable expedite co's. want to keep theri O/O's, they must keep them profitable to be in this business! At least enough of them, to prevent continuous turnover...
I would say that UPS is way too involved with O'Nite Trans. right now to even consider starting up their own expedite co. I was hauling O'Nite expedite freight all the time, but mostly that is mistake stuff... See you all on the road next week- frame almost done.

Original question: DH rates (LEAM O/O's would ask what is that?) are too low, still at year 2000 levels and unlikely to change until companies get more competitive, to the point they are raised to entice more drivers. Note that most companies hover at the $1.10-1.20 base rate before FSC and around .20 cents per mile. Just depends how much freight they have and whether they have to rely on NLM s... or not. I know in my case, the issue has been raised, but no increase yet.