There are going to be potential negative implications from the Fedex cc's move to lower linehaul rates for their cargo vans. Assuming that the Fedex cc is actually going to lower their customer rates in order to become more competitive with other carriers (and not just saying that they are going to do such and pocket the money) the overall rate stanbdards in the expediting industry will surly dwindle.
Also, If fedex is switching to a flat rate, will they still require owner operators to have new vans? How can you afford to pay for a new van every three years if you are running for reduced rates? Maybe Fedex will get more lenient on their arbitrary vehicle age requirements?
For many years, Roberts Express, Fedex, and Landstar have been maintaining a higher level of pay for their owner operators in Cargo vans. I have always been a champion of these three companies for setting the standard higher while the other expediting companies (insert company name here) have been duking it out and driving down the rates. Well, now that the "good companies" are joining in on the rate wars, a new and potentially dangerous precedent will be set.
Also, when Fedex lowers van rates in order to retain their current customer base, the spirit of competition will just allow other outside carriers to come in and compete with them on their own turf. So, as soon as Fedex's regular customers find out that price is relative to "on time service" they risk losing their long-time accounts to outside competition. From what I understand, some Fedex customers do not even know that there are other Expedite carriers out there. So, once these so called customers find out about other carriers (insert company name here) the bidding wars will drive the prices down even more.
Look people, we are not truck drivers, we are not LTL carriers, we provide a very critical role in keeping companies going. Why in the hell are our carriers trying to lover the rates down to the point where we will not even be able to get our vehicles serviced? This is complete crap and someone has got to put an end to it. Why would any of us accept loads just to stay in service and keep ourselves busy? In the expediting business we are supposed to work smarter, not harder! If rates continue to drop the way that they have been lately, we all just might as well become regular truck drivers.
All I can see coming from this move by Fedex is that companies are going to price themselves out of the market. They are not going to be able to retain drivers and customers will get used to "double dipping" and "non-exclusive" use. This in turn will cause our traditional expedite customer base to expect us to work for lower rates while they demand on time service. Well, if you want your loads to be delivered on time "and run me to the point where I can't even stop to take a **** because the freight is hot" you better pay me for my dedication and service.
Aslo, look at the way in which Fedex is implimenting these changes on their cargo van drivers. As I recall, it wasn't very long ago when the fed switched over to a fixed weekly fuel surcharge surcharge. Let me put it to you this way; Fedex is pulling the old boil a frog trick. They are introducing the contract changes in systematic stages, kind of like putting a frog in warm water and then slowly increasing the heat until the frog is boiled alive. By the time the water gets too hot, the frog is too lazy to jump out of the pot. Don't let yourselves be pushed into this new contract Fedex drivers! You need to fight this tooth and nail.
This is bad for all of us! You Fedex drivers should turn down every load that they offer you under the new contract. It's not just you Fedex guys who will be impacted by this; it is the rest of us as well. Why don't our companies get together and agree to stop the bidding wars? Why can't we as drivers get together and tell the shippers and "NLM" that we are not going to be their slaves anymore. We need to do something about this other than ****, whine, and moan on this forum? Any suggestions would be appreciated!
Also, If fedex is switching to a flat rate, will they still require owner operators to have new vans? How can you afford to pay for a new van every three years if you are running for reduced rates? Maybe Fedex will get more lenient on their arbitrary vehicle age requirements?
For many years, Roberts Express, Fedex, and Landstar have been maintaining a higher level of pay for their owner operators in Cargo vans. I have always been a champion of these three companies for setting the standard higher while the other expediting companies (insert company name here) have been duking it out and driving down the rates. Well, now that the "good companies" are joining in on the rate wars, a new and potentially dangerous precedent will be set.
Also, when Fedex lowers van rates in order to retain their current customer base, the spirit of competition will just allow other outside carriers to come in and compete with them on their own turf. So, as soon as Fedex's regular customers find out that price is relative to "on time service" they risk losing their long-time accounts to outside competition. From what I understand, some Fedex customers do not even know that there are other Expedite carriers out there. So, once these so called customers find out about other carriers (insert company name here) the bidding wars will drive the prices down even more.
Look people, we are not truck drivers, we are not LTL carriers, we provide a very critical role in keeping companies going. Why in the hell are our carriers trying to lover the rates down to the point where we will not even be able to get our vehicles serviced? This is complete crap and someone has got to put an end to it. Why would any of us accept loads just to stay in service and keep ourselves busy? In the expediting business we are supposed to work smarter, not harder! If rates continue to drop the way that they have been lately, we all just might as well become regular truck drivers.
All I can see coming from this move by Fedex is that companies are going to price themselves out of the market. They are not going to be able to retain drivers and customers will get used to "double dipping" and "non-exclusive" use. This in turn will cause our traditional expedite customer base to expect us to work for lower rates while they demand on time service. Well, if you want your loads to be delivered on time "and run me to the point where I can't even stop to take a **** because the freight is hot" you better pay me for my dedication and service.
Aslo, look at the way in which Fedex is implimenting these changes on their cargo van drivers. As I recall, it wasn't very long ago when the fed switched over to a fixed weekly fuel surcharge surcharge. Let me put it to you this way; Fedex is pulling the old boil a frog trick. They are introducing the contract changes in systematic stages, kind of like putting a frog in warm water and then slowly increasing the heat until the frog is boiled alive. By the time the water gets too hot, the frog is too lazy to jump out of the pot. Don't let yourselves be pushed into this new contract Fedex drivers! You need to fight this tooth and nail.
This is bad for all of us! You Fedex drivers should turn down every load that they offer you under the new contract. It's not just you Fedex guys who will be impacted by this; it is the rest of us as well. Why don't our companies get together and agree to stop the bidding wars? Why can't we as drivers get together and tell the shippers and "NLM" that we are not going to be their slaves anymore. We need to do something about this other than ****, whine, and moan on this forum? Any suggestions would be appreciated!
Last edited:
