FedEx Custom Critical vs Panther Expedited

[gltasin]

I am looking at working for one of the two companies for independent contractors. I have read on some forums where some pay 40% and the company pays road tolls and fuel cost others pay 60% and the driver pays tolls and fuel. My question is how do you know who pays more per mile. Just based on the 40%, if Panther pays on average 1.20 a mile and FedEx pays 1.30, then I should go with FedEx. The question is how do I know who pays more per load on average?

Once we get into the 60% who pays more for fuel surcharge? Do I get to take the fuel cost out of my taxes if I pay them even though I do not own the truck? That alone could be the difference in a few thousand dollars a year off taxes. Where can I find this information, or who here works for these companies that can help me out?

I would hate to start working for one company then find I could have been making $200 a week more with the other.

 

[layoutshooter]

I am looking at working for one of the two companies for independent contractors. I have read on some forums where some pay 40% and the company pays road tolls and fuel cost others pay 60% and the driver pays tolls and fuel. My question is how do you know who pays more per mile. Just based on the 40%, if Panther pays on average 1.20 a mile and FedEx pays 1.30, then I should go with FedEx. The question is how do I know who pays more per load on average?

Once we get into the 60% who pays more for fuel surcharge? Do I get to take the fuel cost out of my taxes if I pay them even though I do not own the truck? That alone could be the difference in a few thousand dollars a year off taxes. Where can I find this information, or who here works for these companies that can help me out?

I would hate to start working for one company then find I could have been making $200 a week more with the other.

Good questions and welcome to the forums.

No one carrier has it over the other. They all have good points and bad ones. We tend to call them "warts" in here. You can make money with most carriers. It all boils down to what suits your needs the best and which warts you can live with.

Yes, you can take the cost of fuel off your taxes. The FSC is considered income. It has always been our opinion that you can do better with the 60%, buying your own fuel and getting 100% of the FSC.

Spend a few months reading the forums, go back in this section as far as you can. Also look in the FAQ section. There is a lot of this type of information in there.

Good luck, as all the questions you like!! Be sure to ask a few dumb ones too, we have not had anyone to make fun of for a while in here!!

Again, WELCOME!!

 

[gltasin]

A few months?? I hope to start working within the next few weeks. I have found most contracted companies want to pay the 40% to the driver 60% to the owner. I also have researched and found that Panther contracts some of the larger companies at $1.35 a mile. I have not found out the average per mile FedEx pays. I really need to work and cannot afford to wait a few months.
I looked into tractor trailers also. Teams make .28 to .37 cents a mile for the first year. The rates go up depending on the company after 6 months and then a year. Some start low and by the end of the year are around .36 others start at .36 but the training is longer, 6 weeks at $350 to $400 a week.
Point being, it looks as if expedited is the way to go. Per mile averages at .42 a mile and up. But how do you know what the average per mile pay is for FedEx to compare with Panther or any other carrier for that matter?

 

[davekc]

Agree with the others. Takes awhile to research what is the best fit for you.
Maybe a place to start and work your way backwards.
http://www.expeditersonline.com/for...forum/41822-1-20-mile-expedite-freight-2.html

 

[layoutshooter]

A few months?? I hope to start working within the next few weeks. I have found most contracted companies want to pay the 40% to the driver 60% to the owner. I also have researched and found that Panther contracts some of the larger companies at $1.35 a mile. I have not found out the average per mile FedEx pays. I really need to work and cannot afford to wait a few months.
I looked into tractor trailers also. Teams make .28 to .37 cents a mile for the first year. The rates go up depending on the company after 6 months and then a year. Some start low and by the end of the year are around .36 others start at .36 but the training is longer, 6 weeks at $350 to $400 a week.
Point being, it looks as if expedited is the way to go. Per mile averages at .42 a mile and up. But how do you know what the average per mile pay is for FedEx to compare with Panther or any other carrier for that matter?

FedEx does not pay by the mile, they pay on a % of the load.

Are you going to be a team? Do you have DOD clearances? Have you found an owner to drive for? Many owners pay a 60/40 split with the FSC going to the driver. Many do not.

There are no easy answers to that question. Teams can make more than solo's, generally speaking. White Glove rates can be higher and Tval trucks can earn more than most but have higher expenses. Some Panther trunks do better than some FedEx trucks and you will find the same the other way around.

In my humble opinion there no "one size fits all" answer to your questions and there is no one company that is head and shoulders above the rest. There are successful drivers working for just about every expediting company out there.

 

[greg334]

The question is how do I know who pays more per load on average?

You can't. Like Layout said, there really isn't a way to find out outside of getting into a truck and running with a company.

Once we get into the 60% who pays more for fuel surcharge?

Depends on what the contract you have with the owner.

Do I get to take the fuel cost out of my taxes if I pay them even though I do not own the truck?

What does your accountant say? DO you have one? How about Frank here on EO?

That alone could be the difference in a few thousand dollars a year off taxes.

True but it depends.

Where can I find this information, or who here works for these companies that can help me out?

You have two already, I'm not with those two but ...

I would hate to start working for one company then find I could have been making $200 a week more with the other.

That's really irrelevant, all because of what other factors involved may have an impact your bottom line.

 

[gltasin]

Are you going to be a team? Do you have DOD clearances? Have you found an owner to drive for? Many owners pay a 60/40 split with the FSC going to the driver. Many do not.

I am going with a team. I am getting the DOD clearances during orientation. I know it takes a few weeks for background checks. I am talking to owners now, this is how I have come up with the numbers I have gotten so far. Most owners that have contacted me are offering 40/60 split.

I understand the "to each his own" I just want to try and make the right decisions from the beginning, not find out that the grass wasn't just greener but there was also a pool.

 

[layoutshooter]

I am going with a team. I am getting the DOD clearances during orientation. I know it takes a few weeks for background checks. I am talking to owners now, this is how I have come up with the numbers I have gotten so far. Most owners that have contacted me are offering 40/60 split.

I understand the "to each his own" I just want to try and make the right decisions from the beginning, not find out that the grass wasn't just greener but there was also a pool.

It can take a few weeks to a year to get your clearances depending on your situation. It is only a "secret" clearance but many things go into getting it.

A team is the ONLY way to go, at least in my opinion.

Talk with more owners. There are many who do the 60/40 split. Ask the company you are in orientation with, they can often steer you to owners.

As to what company to go with, we are with FDCC and we do well with them. Again, they fit our needs at this point in time. Could that ever change? Of course it could. We have been with them since we started in this business 5 years ago and right now have no intention of changing but you never know what life will throw at you and who knows what will happen in the future.

One of the reasons I suggested that you spend a few months read this was it would give you a better idea on who is making what over a longer time frame. It does change.

I can tell you that there are trucks that do better than ours in FDCC and trucks that do worse. There trucks at other companies that do better and trucks that do worse. It really does boil down to choice and what you are willing to do to earn the money. With most of the reputable expediting companies if you are willing to work, stay out, don't turn down places like Canada, NYC or turn down hazmat you can earn a good living.

One thing is FOR SURE, 100% FOR SURE. This is NOT a get rich quick scheme. It is NOT a job, it is a business and a life style. It works for some, not others.

 

[Ragman]

Be sure to ask a few dumb ones too, we have not had anyone to make fun of for a while in here!!

Not true! We still make fun of OVM.

 

[pjjjjj]

A few months?? I hope to start working within the next few weeks. .......... I really need to work and cannot afford to wait a few months.

Your statements above kinda put up red flags for me..... this isn't the type of thing where it's like a job and you go to work and earn money, just like that..... there is a reason why the experienced say to start out with a good reserve.... if you can't afford to wait and learn right now before you start, that is all the more reason why you should save a lot more money before you jump into this, and do a lot more reading. There are all kinds of things that can come up and give you a negative cash flow at times, and especially when you're new and inexperienced.

 

[jjoerger]

When I first read the title to this post I thought it was about a competition. Maybe a cross country race or something.

Anyway, here is my opinon based on my experience.
When we first started we did the 40/60 split. No money out of our pocket into the fuel tanks to get started, no fuel costs to deadhead and the fuel for the APU was paid for too.
After we learned more about the business and had our feet wet we switched to a 60/40 split. Made a little more money.
We started out with little money in reserve and saved as much as we could. We bought our own truck after our first year and became owner operators.
Everything that we did worked for us, but everyones situation is different.
Good Luck

 

[greg334]

Pjjjj, there are a few flags. I won't get into it.

Layout, clearance shouldn't be sought after with new people at these companies just like W/G "invites", there should be a vetting process within the company to limit liabilities. I know there are "exceptions" to the rules but ... never mind ... anywho ... I understood from the process that finances are looked at hard now, bad credit report triggers a lot more issues to be investigated.

 

[nightcreacher]

Sounds like you have an A cdl or are just getting one.If so, there are other options than Custom Critical,and Panther.There is also much more to expediting than getting behind the wheel and driving a truck.You need to find some one you can drive with.The owner,not a driver for an owner.There are many variables to what your paycheck might be each week.

 

[gltasin]

I see all of your points. I guess if I am not mistaken, I need to go with one of the companies to gain experience. The question now is with everything that I need to learn about this business, wouldn't I do better starting off with a 40/60 split until I am out there and learn more then move to a company that does a 60/40 or just start with the 60/40 and read over this link again?

http://www.expeditersonline.com/for...4465-diesel-price-versus-cost-whose-20-a.html

My initial question was trying to decide what FedEx averages by the mile so that I could choose to go with them or Panther, now I see there is a lot more to it. I need to work for a company and build up a cushion, learn the ins and outs, keep up with all cost while I don't have to pay them so that I know what they are if I later decide to buy my own truck.

As far as security clearance goes, I use to build government office buildings, so it shouldn't take long to get my clearance. It only took me a week to get hazmat.

Thanks for all your help.

 

[Turtle]

...wouldn't I do better starting off with a 40/60 split until I am out there and learn more then move to a company that does a 60/40 or just start with the 60/40...

My initial question was trying to decide what FedEx averages by the mile so that I could choose to go with them or Panther, now I see there is a lot more to it.

Yeah, there's more to it. You keep talking about going with a company that offers 60/40 versus 40/60, but companies (carriers) like Panther and FedEx do not offer such splits at all, those splits are between, and strictly up to, the owner and the driver, not the carrier and the driver. When you sign on with a truck owner, any questions about money and how it's split is between you and the owner, the carrier has nothing to do with it, and will not get involved in any way.

When you own your own truck the most important thing is to find the right carrier, the one that is the best fit for you. When you sign on with an owner, it's far more important to find an owner that works best for you, regardless of which carrier they are leased with.

But the most important thing of all is to not confuse in any way the fleet owner with the carrier. Carriers deal with the drivers when dispatching loads, but for everything else they deal with the owner. You deal with the carrier for loads, but for everything else, including money, you deal with the fleet owner. So Panther versus FedEx doesn't matter much, at least not until you get some considerable experience with which to make intelligent decisions about the actual differences between the two, and before you can do that you have to fully understand the differences between a fleet owner and the carrier they are leased to.

 

[dabluzman1]

If you are so concerned about an extra 200/week ( I know that could be a lot depending on circumstance ) but in this industry thats a mini, an extra run something you take because it fits a time slot and allows you get back on the board for another run.
No guarantees out here, if you need that much assurance better off working at Mickey D.
What you make will largely be reflected by the effort YOU make.
Good Luck.

 

[gltasin]

I was trying to make an informed decision instead of jumping into something. I found a company that will pay 42/58. I am thinking of going with them while I get my feet wet. I am going to keep a notebook with me and write down everything I can for comparison and then after 6 months or so I may either swap for a company that does a 60/40 split if I see that benefits me more, stay where I am, or I may even get my own truck. I realize now that FedEx does not have a contract with companies for a straight cost per mile like Panther does, but I was just hoping to get a little feedback which I did. Again thanks.

 

[ebsprintin]

Here is something to try to test your commitment to this new venture. Track the locations thread for the current month. http://www.expeditersonline.com/forum/general-expediter-forum/41838-june-2010-locations.html Find when one of the members is in your area and send them a private message and see if they will meet you for a coffee. Sounds to me that you need a face to face conversation to get some of these very basic concepts down pat. On the one hand you say you are trying to make an informed decision and at the very same time you are telling us that you are in the process of making a very rash decision. If you don't have the time and money to make a thorough study of the subject, then you probably don't have the knowledge and money to give this a start. Maybe you can find an owner in your area to sit down with and get some tutoring. Or in just a few weeks there is going to be the expedite expo, and everyone will be there for that.

eb

 

[ConfusedMuse]

Wow someone else wants to enter this business. Every single time ( seems to me) that 'normal'business and i say that loosely takes a hit, people see the free wheeling, happy go lucky truck drivers driving down that lonesome, pot hole road that is filled with crazy 4 wheelers and say to themselves 'That's the life for me!" What people don't see is the long, sweaty hours, *****y dispatchers, shippers, consignees. Missed connections, break downs on the side of the road, food poisoning, dirty bathrooms, freight agents/companies trying to scam you, the driver, or the O/O out of every single last penny that should go to you, but, somehow ends up in their wallet, some companies hardly ever let you even get close to your home area, so you could spend some extra time at home, the list is endless of discomforts we live with day to day, some are amusing, alot are down right scary, etc,etc... These people come on here, and think again all I have to do is read, and sign on. Wish it were so easy. Take your time, read ever single topic on here that you can, ask,ask,ask, and ask again. If you need a job right this very second, DON"T get into this one. We've been doing it for 7 years, and Im the first to admit I don't know it all even yet. Some fleet owners are snakes others are saints, by the same token there are drivers that a both, too. It is virtually impossible to get it all right first time around.

 

[ATeam]

...What people don't see is the long, sweaty hours, *****y dispatchers, shippers, consignees. Missed connections, break downs on the side of the road, food poisoning, dirty bathrooms, freight agents/companies trying to scam you, the driver, or the O/O out of every single last penny that should go to you, but, somehow ends up in their wallet, some companies hardly ever let you even get close to your home area, so you could spend some extra time at home, the list is endless of discomforts we live with day to day, some are amusing, alot are down right scary, etc,etc...

Everything you say is true. It is also true that expediting has been and continues to be the easiest, most lucrative and most fun job Diane and I have ever had.