FECC Rates

[skittles]

I'm sure that somewhere in the archives there is a post about people commenting about noticing that they have seen changes in rates, but **** if I can find them (have no patience in searching because it can take several hours), I'll just have to be (more than likely) repetitive in asking this question.

Have those of you driving for FECC noticed that the load offer has not changed in the past year although the fsc has gone up? I keep a log of all the loads we have accepted. When the load offer comes across the qualcomm, we get the fsc, tolls, and pay of the load. Since we are a reefer/TVAL truck, we get load offers for the same customers. I have noticed that the load offer that we received a year ago have not changed in the price, but the fsc has gone up dramatically.

Mike and I are on a 40/60 percentage with the owners. This means we are making less than we were a year ago.

My understanding was that the fsc was in addition to what the charges were to a customer. Obviously FECC is cutting their rates to the customer to adjust for the fsc which is bs.

Any thoughts/comments? In my opinion, I think that perhaps FECC thinks we're a bunch of idiots that haven't put two and two together and I'm not sure who I need to contact to discuss this situation. I thought we had people (Terry/Renee) on the FECC drivers board to speak up for us.

Cynthia/Mike

PS, Mike misses all of you and truly regrets not being able to participate, but keeps posting his photos on the net!

 

[nightcreacher]

Cynthyia,i also keep records of all my loads,as long as im not doing one of the discounted customers,my rates do show an increase,but there a alot of customers that get a big discount. The Pfizer loads I do have increased,thanks to the surcharge,and LG loads have increased,but i have also seen customers whos rates havent changed,meaning the base pay is less.For me to accept a load,I have to be able to do it with the advance on it,I send 60% of every load home after the 1st load of the week,that load I send 55%.If the advance wont take care of all my expenses,including saving money for any unforseen problems,I dont do the load,no matter what the gross pay is.That the system i use to determine if I do the load or not.I'm not going into my bank account to operate my truck,thats what happened at Con-Way when i was there for the 3 years of exile,and i'm still trying get my head back out of the water.

 

[fastrod]

You need to call Virginia right away and get a new pair of rose colored glasses because the ones you have now do not appear to be working properly. You are starting to see the cold hard facts about Fedex and they should not be visable through properly working glasses. I do not think that Fedex believes you are idiots, they know that if you do not take these loads they can find someone who will. You are also correct that the fsc is in addition to the base rate charged to the customer and Fedex is possibly cutting the rate to stay competitive with the other carriers and not lose accounts. It might work better for you to flip that split and take the 60% and buy fuel.

 

[EASYTRADER]

FECC has a page on the contractor web where you pull yyour load averages up and see what you've earned for two years.

comapred to last year my pper mile break down is UP by 10 cents however my per mile fuel cost is up by about 15 to 20 cents which puts me upside down earnings wise comapred with last year.

So I suspect they did raise their base rate but kept all their active accounts the same and that they
do cut the rate to make up for the FSC.

You do what you have to do to keep your customer especially if you aren't out actively selling to find new customers.

anyway this year hasn't picked up yet so those numbers may change rapidly come june like they did last year.

But the trend looks to me that we will gross about 10 percent higher this year but NET about
5 percent less.

So far this year our deadhead is up about 7 percent which may account for some of the difference. While our accept ratio is DOWN 10 percent.

as more trucks come back in service our acceppt ratio goes up because there will be less offers to turn down.

Anyway aske again in august and we see how the trend is moving

 

[greg334]

I wonder if you are a WG truck?

There is a difference if you are WG.

Some cases rates have stayed the same, but the FSC increasing means nothing. Rates should be increasing, not stagnate and without the FSC added in. The FSC only compensates for the increase in fuel prices.

The driver’s council?

Seriously, you think they represent anybody?

When I asked about who they were, I got “well… we don’t like to give that information out”, so I call the phantom council.

 

[Tennesseahawk]

Greg... could you imagine that in Washington?

"Could you tell me who represents my district?"

"Well... we don't like to give that information out."

 

[terryandrene]

Skittles:

I'll address your last comment first because it is an issue that begs clarification. You are correct in stating that Rene' and I have participated in the FedEx Custom Critical Contractor Council. Our participation has greatly benefited our understanding of the carrier's management, staff, policies and programs. We trust that the FCC management, and by extension the rest of the fleet, has reaped an equal benefit from our experiences and comments and those of our fellow Council members. The membership and activities of the Council is not widely publicized because the members of the FCC Contractor Council are not chosen, to "speak for" the other fleet members nor to be representatives of other Owner/Operators, but because they are believed to be representative of a cross section of their fellow Independent Contractors.

The purpose of the Contractor Council meetings is to review current and future FCC operations, programs, policies and procedures and discuss their impact on the fleet of leased vehicles and their owners and drivers. These informal meetings are a free exchange of ideas where we are urged to speak candidly about our relationship with FCC and to present issues that would lend to the improvement of the Contractor, Customer and Carrier business environment. We also are periodically be asked to test, evaluate and critique products and procedures being considered by FCC.

The Council members have no influence whatsoever on the freight rates. We were, however, instrumental in the manner in which the load offers combine the freight rate, tolls, and FSC figures. As you may recall, a couple of years ago, our run offers were devoid of the toll and FSC figures so we had to call to get the true revenue figures. Now that they combine all the figures, and we are all used to the appearance of the offer, it seems as though the freight rate is increasing but the increase has been mostly in the FSC and not the freight rates.

I can't speak to the T-VAL rates but I can make a guess why, if at all, the rates are not improving. A couple of years ago, our carrier was the "go to" carrier for the transport of expedited temperature validated freight. It is a lucrative segment of our business so it's only natural that other carriers would enter the ring and develop similar services. With competition comes freight rate variations and the changes are generally downward. That's just one cargo van operator's opinion.

 

[TeamCaffee]

I looked at our ppm and this is slowly coming up but not as fast as our expenses have. Times are tight every where not just in trucking, we are tightening our belt and plan to ride this out. We have confidence in our carrier as they are actively pursuing new customers and new areas of revenue. The FedEx Custom Critical Driver Council is made of drivers and fleet owners who have the same concerns as everyone else. If you are unhappy where you are start doing research on other companies and see how their rates compare to FedEx Custom Critical if you find a company that fits you better give them a try.

 

[nightcreacher]

ok my breakdown:for the first 4 months this year,thats 'til now.
have hauled 7 less loads,
my overall mileage is 11 cpm better,
ive run 3000 less miles,
my load accept is almost 9% worse,
my overall pay is practically the same,
I have had more time off this year. I dont feel they are lowering our pay to equal out the surcharge.There are many other expediters now compared to years ago.To compete for freight in the industry,since almost all the companies all offer on time service,the only way to compete is rates.Oh and by the way,my bottom line is almost the same,but Ive done things to try and save my expenses

 

[ATeam]

My analysis of freight rates and fuel surcharges is not as sophistocated or detaled as some others. While the information could be extracted from our records, Diane and I have never paid close attention the load pay details (surcharge, base pay, accessorials, tolls, etc.). We look at the total pay for each offered load and make our accept/decline decision based on that.

If the run pays enough money per mile to pay our costs per mile plus a reasonable profit, we take the load. With fuel prices and other costs now rising at a rapid rate, our cost per mile has also risen. Accordingly, we raised the minimum price a load must pay for us to accept it.

We have the freedom to set our minimum rate without consulting anyone. We can change our rate instantly and at will. Our carrier is not as nimble. The rates a carrier charges a customer are are sometimes contractually set for a specific period of time. Competition is a factor, as is carrier overhead, shipper demands, new regulations, and many other pieces of the puzzle.

Skyrocketing fuel prices are whipsawing truckers, carriers, shippers, and end-use customers more than usual these days. New decions are being made ranging from airlines cutting flights, to package companies upping their surcharges, to people quitting part time jobs because they cannot afford to drive to them, to expediters deadheading home less often, to shippers changing their methods, etc., etc., etc.

It will take time for the new reality of sky high fuel prices to work its way through the economy. I expect to see increased volitility in things like rates, surcharges, acceptance percentages, shipping methods, fleet sizes, pay schedules and more before things settle into a new normal.

I see it less about a carrier (any carrier) being more fair or unfair than a year ago, and more about carriers and contractors finding their way forward through the fuel-price and recessionary fog.

In our one-truck expedite business, I do not believe the year ahead will be as busy or lucrative as the year behind. I'm not looking to our carrier to fix that. I am confident that as Diane and I ride out the storm with our carrier, weak expediters will drop out, eventually making the services we provide more valuable.

I could be wrong about this. One never knows. I expect to have some time to think about it, as fuel prices continue to rise, the recession proceeds, and Diane and I sit in RV parks, watching other expediters drive by with unprofitable loads.

In the uncertain times that lie ahead, Diane and I will be as available, professional and reliable as ever, but we will not work for free.

 

[Bruno]

The money for us has been the same or better. FUEL is The REAL problem. I was watching a show with Mrs. Clinton on it and she was talking about Oil prices are killing the US dollar and so on. I'm going to vote for her if she makes it. Made better money when Bill and her was in the White House and oil was at $21.00 a barrel.