FedEx Changes Deadhead pay and FSC

[guest]

>Hmmmmm........sounds something like what Con-Way did just
>before they sold the NOW out to Panther


>HMMMMMM........ rumor has it, Panther is not done buying
>up other Expedite companies, or divisions of other carriers,
>such as hmmmmmmmmmm........FECC?????
>
>But really.....HMMMMMMMM???????????
>
>Coincidence........HMMMMMMMM????????????
>
>Sorry I think I have something stuck in my
>throat.......HMMMMMMMMM????!!!!!!!!!!!

As Far as Panther Buying FedEx Custom Critical it will NEVER Happen.
FedEx has a long term lease on the building that was just built in Green, Ohio. 2nd The City of Green gave FedEx such a Great deal on Taxes thats why they moved from Akron, Ohio to Green, Ohio.

They City of Akron Tried to make all kinds of deals with FedEx not to move. So there is a big commitment from FedEx to the City of Green.
I know FedEx will do the right thing and take a 2nd look at this and talk to there owners about this.

The busy time of the year is here and lets go moves some loads.

Drive safe

Dave Mayfield
FEDExCC/Roberts Express O/O Since 3/1/1995
C1847,C2045,D3397,D5047

 

[davekc]

I would never say never. There are several that would have a interest in CC.
The building in Akron would be retained by Fedex but used for the LTL division. They are already occupy the top floor.
Fedex has already indicated that they are looking to raise additional revenues for their United Postal Service program which they just signed.
I always look at this stuff as "never say never"







Davekc
owner
22 years
PantherII
EO moderator

 

[RichM]

You know the world is full of people who said "This will never happen and then it does". From what I have been reading it looks like units will take a hit. Could be Panther is putting pressure and overall trips are down but lets try to keep the revenue up with smoke screens to our so called independent contractors. The next 6 months should tell a lot.

 

[davekc]

Without a doubt carriers are feeling increased pressure. You are right, competition between large carriers as well as smaller companies hauling for less because their overhead is much less.
Fedex had been the largest but they are dropping on their total expedited rates in order to remain competitive.
No real secret as drivers are continuing to see it.
Runs completed a year ago pay considerably less in alot of instances compared to last year. I believe member bernie48 put a post up about that.
They ran the same run for the same customer several times with the same weight and delivery location and it consistently dropped. The competition affects all the carriers. Very few have raised rates over the last several years.






Davekc
owner
22 years
PantherII
EO moderator

 

[targuard86]

FCC just raised rates for their standard tarriff customers.

I have no idea how many of their customers actually pay the standard tarriff as opposed to contracted rates.

Maybe its just been luck but my trucks have gotten some very good paying runs this past week. I know the FSC is not in place yet but I think the rate increase has already taken effect.

 

[ATeam]

I'm doing our evaluation now (number crunching) and will have more to share later. For now, just a couple points:

1. I am delighted by and proud of FedEx Custom Critical's toll reimbursement package. It passes tolls paid by a particular truck on a particular run on to the shipper. Hardly a month goes by where trucking publications do not report on a new state or local toll initiatiave of some sort. Toll roads are the way of the future. It is good to see FedEx Custom Critical get ahead of the game and charge their customers accordingly.

This is no small thing. With its toll compensation package, FedEx Custom Critical is taking a stand that I hope will be part of a trucking industry sea change in toll-payment responsibility. While the FedEx toll package is not yet fully developed, it gives me a sense of relief to know that shippers will pay the tolls associated with their freight, and not the drivers.

High praise to FedEx for taking this stand!

2. FedEx is changing four components of it's compensation package, deadhead, tolls, fuel surcharges and tarriffs. It matters not how one or two play out, it matters how they all blend together and what the end result is. It will take some time to determine that because it will take time to see what the new tarriffs are.

3. Still happy FedEx campers here. Not worried about the changes. If they are so bad that contractors leave in significant numbers, FedEx will change them for the better. It costs money to change carriers. You lose time and deadhead miles to the new carrier in the transition.

4. Diane and I plan to stay put, even if the deal is bad, (again, my analysis is pending, the deal may not be bad for our one-truck CR business at all). If the deal is bad, it will be cheaper to run with less pay and wait for FedEx to correct its mistakes than to lose a week of pay (more or less) plus deadhead miles changing carriers and lose poductivity as we learn the new system.

 

[greg334]

Good for you Phil, I find your analyses give some of us hope.

 

[LDB]

I appreciate the optimism on behalf of FedEx. Since I don’t run for them I have no actual numbers to compare, only observations based on the talk and information shared so far. It sounds as if there is a small to moderate gain in d/h compensation, a small to moderate gain in tolls, a large to extra large loss in fsc and an unknown change in tariffs. At this point it would seem in the income account the debits outweigh the credits, which isn’t a good thing. Hopefully it will all work out for the best for the contractors but it appears this is another case of the company ignoring what’s best for the contractors. At this point I see nothing to be excited about and certainly nothing to praise the company for.

Leo Bricker, 73's K5LDB, OOIDA 677319
Owner, Panther trucks 5507, 5508, 5509
Highway Watch Participant, Truckerbuddy
EO Forum Moderator
----------
Support the entire Constitution, not just the parts you like.

 

[guest]

Well, it's done and over with.

Drive safe

Dave Mayfield
FEDExCC/Roberts Express O/O Since 3/1/1995
C1847,C2045,D3397,D5047

 

[D Team Brothers]

Fedex O/O, but a newbie. I truely appreciate EO for many reasons, but this is a great example. Here we have many (even non Fedex) expressing their opinions about these changes. As a newbie I certainly benefit from comments from both the experienced and novices. As to the changes I need to wait and see for a start. BUT, I just looked at six random runs that I did and my calculations of the new fsc apposed to what I was paid for these, and I ended up MINUS $346. I hope I am proven wrong, if not this change has to change again!

 

[Coco]

Just an observation.......I guess FDCC is already using their new paid toll routing. It is amazing how many non-toll shortcuts they have found on a trip from Madison WI to Philly. A route that was always toll after toll. It will be interesting to see how many more miles will be driven on 2 and 4 lane roads to avoid collecting a toll from the customer, not to mention the extra time it wll take. I can't wait to see the route from NYC to DC.

 

[C5BILL]

What sticks in my crawl is when someone tries to stick it to me and then tries to make me think it was my idea or in my best interest.

Be honest with me and I'll support you all the way.

 

[guest]

After Spending most of this week talking to FedEx driver's and Owner's. I went to FedEx and talked to Rick Franks about the FSC program because I was upet about it. I wasn't looking at the big picture and the one thing that goes with this new program. A RATE INCREASE!!

I spent An hour on the phone with FEDEX about the new Rates.

Here is the loaded miles that one of my wifes trucks are on.

3132 loaded miles. They where 354 miles from the pickup

I did it the old way and the new way. What FedEx has forgot to show everyone is the Rate inrease with the new Base charge's. After talking with Dispach and getting the new Rates and Doing it both ways the Truck would get $442.00 more in the base Charge's and $71.15 more on the Total pay on the load. I hope this Helps.

So this will work out in the long Run for everyone. Yea your FSC has went down, but you base charges have went up to off set your bottom line. I will take 71.15 more on Each load if FedEx want to give that to me. I have already signed my new lease and will be dropping it off at FedEx tomorrow.

Have a great day.



Drive safe

Dave Mayfield
FEDExCC/Roberts Express O/O Since 3/1/1995
C1847,C2045,D3397,D5047

 

[D Team Brothers]

Question for Mr. Mayfield; In your example am I correct in believing that if that truck had a team in it, working for and O/O with a 60/40 split with team getting FSC the end result for the team would be:
They get reduced FSC (probably large with that number of miles) and the $71. increase in overall load pay needs to be split 60/40? If I am correct the team still loses big time. The FSC will be under $700. but will cost well over $1,000. for all those miles. Again, just trying to learn and you are one of those whose advise I respect.

 

[ATeam]

Thank you, Mr. Mayfield for your rate information. That rate piece was missing from the deadhead, fuel and tolls information FedEx posted on its Extranet (contractor web site). I had a feeling things might go that way and until I have the chance to crunch actual numbers relative to our truck, the jury remains out. But it is encouraging to hear the news you shared. Thanks again.

 

[TeamCaffee]

Dave thanks for posting that. We also have our hopes up that all will work out for the best!!

 

[dhalltoyo]

Why change?

Why would a carrier reduce the FSC, knowing contractors would complain, and then increase the rate?

Personally, I believe it really comes down to marketing personnel who waffle when selling service to shippers.

Properly presented you can sell value; regardless of the FSC.

 

[nightcreacher]

i have taken all my loads,and only surcharge i have problem with is the discounted freight,i am not getting 58% of surcharge now,and never have,its alway 100% of what they charge the customer
i have had many conversations with fed ex brass,discounted loads will pay more,not sure of the regular tarrif,not til it happens,but fed ex pass port might be in the future,as tractor owner,can always haul cars
nightcreacher
ooida 263839
fed ex cc since 1984
steve gilbert
E6613

 

[jackdixon_2000]

As for drivers working for owners and doing the 60/40 split. If the base rates increase and fuel surcharges decrease you simply have to arrange for a higher percentage split to offset the difference.

 

[guest]

>Question for Mr. Mayfield; In your example am I correct in
>believing that if that truck had a team in it, working for
>and O/O with a 60/40 split with team getting FSC the end
>result for the team would be:
>They get reduced FSC (probably large with that number of
>miles) and the $71. increase in overall load pay needs to be
>split 60/40? If I am correct the team still loses big time.
>The FSC will be under $700. but will cost well over $1,000.
>for all those miles. Again, just trying to learn and you are
>one of those whose advise I respect.

Nope I don't Advise FedEx on anything I'm just an Owner.

But back to the FSC,Lets say you take a 1000 mile load under the rates we are at right now. FedEx charges the customer about $2.50 per mile.

So lets do the math here.

So lets say we are on a 1000 mile load with a 354 mile deadhead.


1000 miles X $2.50 per mile = $2500.00 X 58% = $1450.00
19% Fuel surcharge + $ 475.00
254 miles in deadhead pay + $ 50.80
Total $1975.60 for the load

The new way.

1000 miles X 2.90 per mile = $2900.00 X 58 % = $1682.00
.21 per loaded mile for the fuel Surcharge = $ 210.00
.21 per a mile FSC for all deadhead miles = $ 74.34
.21 per mile for deadhead miles afer 50 = $ 63.94
Total = $2030.28 for the load

Plus all your tolls are paid on your loaded miles.

The Differnce is 55.28 plus the cost of your tolls.

That's a $1.51 for all loaded and empty miles.

Plus now loads that have a return load that is not over 400 miles don't get 50% off on the return load.

Owners who pay fuel and tolls will have to look at the % they pay there drivers so it still works out the same. It's redoing the number's that's all.

I hope this helps


Drive safe

Dave Mayfield
FEDExCC/Roberts Express O/O Since 3/1/1995
C1847,C2045,D3397,D5047