FedEx Changes Deadhead pay and FSC

guest · Aug 22, 2006

>Dave,
>
>I feel we should get 100% FSC they charge the customer
>because we are paying the fuel not FedEx.
>
>I'm not trying to be a smart arse, I am merely dropping my
>.02 into the mush pot.......................
>
>If my guess is correct, some customers will not only refuse
>to pay any fsc, but some of those same customers will only
>pay the lowest possible rate.
>
>In both cases, if Fedex refuses the load for FSC, there will
>be 2 dozen other carriers that are not only willing, but
>able to jump all over that same load for a discount rate.
>
>This is reality.
>
>So my question is this: If you were to get 100% of FSC all
>the time; would you take (not refuse) 100% of zero - along
>with 100% of a fair fsc?
>
>Just curious and thanks in advance.

There are some customers that do pay the FSC and so that Don't But I perfer to get paid the Fuel surcharge that is being charged. I don't like a Flat rate plan at all. Panther pays a better FSC than this. With the high cost of fuel we should have a choice. Not be forced into a program that I don't want.

Drive safe

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

03cobra · Aug 23, 2006

Just a little side note.

Most of this info on here, posted by those who think they know what they are talking about..... is incorrect.

jackdixon_2000 · Aug 23, 2006

I really don't see what all the excitement is about. On the loads with high fuel surcharge you may loose but on the other hand you benefit on the low or no surcharge accounts and d/h.

My understanding is that the FS is designed to keep our fuel cost in the dollar and some change, range. If I get a .20 a mile FS for almost all dispatched miles, my truck getting 10 mpg works out to $2 a gallon FS and with fuel running at $3.15 a gallon out here in Calif that currently works out to about $1.15 a gallon cost for my fuel.

Now, I must admit that I have litle knowledge of the comming changes but if the above scenario is correct I don't have a problem with it.
The FS is doing what it was designed to do

In fact for west coast trucks and trucks that run the fringe areas like Florida and the deep south etc this will be benifical.

03cobra · Aug 23, 2006

Thank you Jack!

TeamCaffee · Aug 23, 2006

Everything about this is on the extranet including a copy of the new lease appendix. For those of us that will not be home before we have to have all this sent in you can down load the lease, read it, sign it and send the lease back in. The site explains everything in pretty good detail and if you need more information call contractor relations.

davekc · Aug 23, 2006

I don't know the details of this plan but if you take a period of time, say 30 days, you should have your answer.
Take the current FSC and spread it over the total miles for a month and then replace with your current numbers.
Seems like alot of it will depend on how much DHing your doing.
The other thought is, is it a way of forcing repositioning?
What happens if you don't like their reposition? It may move one to a undesirable location for the sake of having coverage. Not necessarily the area that would be more productive.
Not being critical either way, just more of a question or observation.

Davekc
owner
22 years
PantherII
EO moderator

guest · Aug 23, 2006

Good I deal DaveK, I will let you know. I was wrong on the Tolls you get paid 60% of what E unit tolls that are routed by the QC. All deadhead tolls are on you. With the cost of tolls being paid now on all loaded shipments I Guess it will work out in the long run. I was
Just told .20 a mile FSC and was like,(no Way) Every time I would call in to have someone Explain it to me they said they wasn't sure on how to Explain it, That I need to wait and get it in the mail.

Drive safe

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

jackdixon_2000 · Aug 23, 2006

As far as repositioning. We are authorized to stay or go anywhere we want. We only get DH pay, though if we go to the suggested layover express center designated by DVA.

Say I deliver in Nashville and DVA wants me to go to Memphis. I get DH pay to Memphis, or I can just stay in Nashville if I like, or go to Huntsville or Knoxville or any other express center I like. I just don't get paid to go.

In the old days we had to go to our designated express center or be penalized by being unauthorized and stay at the bottom of the list at that particular express center unless you could get planning to authorize you. But you had to wait until regular business hours to talk to them. So if you delivered in the early evening you had to wait until the next morning to talk to them and not acrue you're dwell time until then.

Kenneth Dick · Aug 23, 2006

FLEET OWNER FEDEXCC 9YRS JUST RAN FIGURES FOR LAST MONTH ON FLEET, WILL REC. 11% LESS ON GROSS WITH NEW AND "IMPROVED" PAY SCALE. WITH THE EXCEPTION OF TOLL ASSIT. IF WE CHOOSE NOT TO SIGN NEW AGREEMENT THEN WE WILL REC ONLY 58% OF THE FUEL SURCHARGE THAT FEDEX IS CHARGING THE CUSTOMER. PAY CUT ANY WAY YOU FIG. IT

C5BILL · Aug 23, 2006

It's my understanding if you don't sign, you get your run percentage and zero FSC. I personally would prefer an option to go either way depending upon my business model.

guest · Aug 23, 2006

After looking everything over and Rereading things again. I think It's going to be okay. There paying D and C units 60% of what a E-unit would have to pay in tolls and your getting a FSC that can go up or down because based on the price of Fuel. And then your Getting a FSC on ALL deadhead miles to your next Express Center that DVA send you too plus .20 a mile after 50 miles to your next Express center. It works about the same in the long run because my Wifes 3 trucks together has been paying have been over 1500.00 a month in tolls.

Drive safe

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

Kenneth Dick · Aug 23, 2006

FLEET OWNER FEDEXCC 9YRS contractor relations told us that we could go with the new pay scale or stay with the old except that we would get only 58% of the fuel charge instead of 100 % that we now rec. All I am saying that everyone should run their own numbers. With our trucks, we would be down on rev. Dave, what will it cost you to d/h into long Island ?? How much in tolls over what you will be getting back ?? Just asking, want to make sure how you understand this.

guest · Aug 23, 2006

I think your right on that one. There's so many what if's. I would rather keep it the way it is. I have had a lot of phone calls today about this, and one owner told me that he was going to pull all of his trucks if this happens. Hey I'm just the little guy around here. What Can I do. I still think that since we pay 100% of the fuel we should get 100% of the fuel surcharge. I read on here that if we done want this program that we will only get 58% Of the FSC that is Charged to the customer.

I'm getting a lot of Calls from Owners and Driver's that I have met over the years saying that they may be leaving if this happens.

Drive safe

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

davekc · Aug 23, 2006

FLEET OWNER FEDEXCC 9YRS JUST RAN FIGURES FOR LAST MONTH ON FLEET, WILL REC. 11% LESS ON GROSS WITH NEW AND "IMPROVED" PAY SCALE. WITH THE EXCEPTION OF TOLL ASSIT. IF WE CHOOSE NOT TO SIGN NEW AGREEMENT THEN WE WILL REC ONLY 58% OF THE FUEL SURCHARGE THAT FEDEX IS CHARGING THE CUSTOMER. PAY CUT ANY WAY YOU FIG. IT
=======================================
I don't drive for Fedex but a eleven percent reduction is pretty significant. Just based on this thread it would appear it is a good plan if you do extensive deadheading. Which of course isn't too profitable in of itself. If the deadhead is of a smaller percentage, then you obviously lose money compared to your current situation.
Again, I don't have the facts other than what is posted here, several phone calls and emails.
I wasn't going to respond but I get annoyed when I see a company collecting 100 percent of the FSC and then wanting to only pay 58 percent of it to the driver. Sorry, but that is dead wrong if it is accurate information. It is nothing short of extortion to get people to accept something they may not want.
They should let you keep your existing deal which is what you agreed to, or provide the new option at the owners descretion of acceptance.

Davekc
owner
22 years
PantherII
EO moderator

kjack4181 · Aug 24, 2006

kjack I am a fleet owner with fedex cc for 20 years.I ran the numbers with the current lease and the new lease. I have 6 trucks and it would cut my bottom line by 91,000 a year. The toll pay is a farce. It is for loaded miles only and only if you run the route they send you.If you were in n.j. and they sent you to kennedy airport to p/u and routed you back across the g.w. you would get 7.20
You give up the $50 n.y.geographic fee to get that.Anyone who signs this new lease without a close look at what you are giving up is doomed at fedex cc.The new lease would result in a 11% decrease in my bottom line for the year.They know I cannot accept that so what is their motive.Another question, Why would a company that owns no power units take an 18.5% fuel surcharge if they do not buy fuel.Answer WINDFALL

kjack4181 · Aug 24, 2006

kjack I've been getting .20 per mile dh to p/u and to l/o after first 100 miles since 1986. It does not seem like a good deal to me to trade .20 for 50 miles for the fuel surcharge to me.

TeamCaffee · Aug 24, 2006

There are two things going on here Tolls & Fuel Surcharge,

Where people who spend only their time in New York City wont realize as much of a benefit as they have in the past few years with the New York service fee. The toll roads in PA and in OH and the rest of the country will now be reimbursed which has never been in the past. I view this as a big plus for the majority of the fleet.

The affective price of fuel at 1.20 per gallon of fuel does not seem fair to you what would be a fair price? Some of you have stated we are not going to get back 100% of fuel surcharge how do we know that? Is this just truck stop speculation? Or has someone received conformation on this from someone in FedEx CC?

We feel they are trying to spread out the fuel charge more equitably so we will take the longer deadhead.

guest · Aug 24, 2006

No Linda that is Fact.

Drive safe

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

Tweetie · Aug 24, 2006

FedEx CC O/O 22 years
We totaly agree with you. We also are O/O of 3 trucks and are going to take a hit just like all of us that are contractors with FedEx. We do not know what the solution is at this time. We know that there is a committy of O/O that is representing us at FedEx. They sit at these meetings and decuss what is in our best interest, but we believe they were all take a nap at this paticular meeting. And by the way this group of O/O are hand picked by FedEx cc management.