FedEx Freight Rolls Out Streamlined Operations

ATeam · Jan 31, 2011

Full story here

Posted here so expediters from all carriers can comment. The services named FedEx Freight Priority and FedEx Freight Economy are an interesting transportation industry development.

Expedite carrier FedEx Custom Critical is a component of FedEx Freight. FedEx Freight is one of several operating companies in the FedEx Corporation.

Ryan Henary is quoted in the article linked to above. I interviewed Mr. Henary in February, 2007, as part of a piece I then wrote about FedEx Expedited Freight Services. A lot has changed since then but the EFS story written four years ago is newly interesting in the context of recent developments.

It all strikes me not as an earth-shaking revolution that puts Custom Critical in peril, as some will no doubt suggest, but as part of the ongoing evolution that is always underway at FedEx.

Moot · Jan 31, 2011

ATeam said:
The services named FedEx Freight Priority and FedEx Freight Economy are an interesting transportation industry development.

Not really all that interesting considering the fact that most large LTL carriers have been offering standard and premium service for years. The only difference is the name attached to the service. Estes' premium service is called Gold Medal something or other. Vitran calls theirs Guaranteed ______. Years ago CF offered Day Saver Service.

Long haul LTL going intermodal? What a concept! Did FedEx also invent the wheel? What I did find interesting is that FedEx is finally combining national and regional into one unit.

jelliott · Feb 1, 2011

Not sure I see this having any near term effect on Custom Critical.

Lawrence · Feb 1, 2011

jelliott said:
Not sure I see this having any near term effect on Custom Critical.

I agree John. I also agree with Phil that FedEx is in a state of evolution. Wait...our company is in a state of evolution too!

nightcreacher · Feb 1, 2011

I did a fed ex intermodal load couple months ago,name on bills was fedex cc. Wander how many FDCC team tractors in Newak NJ or Trenton were put on a LG load rather than this load,that paid me $3500 to Laredo

davekc · Feb 1, 2011

nightcreacher said:
I did a fed ex intermodal load couple months ago,name on bills was fedex cc. Wander how many FDCC team tractors in Newak NJ or Trenton were put on a LG load rather than this load,that paid me $3500 to Laredo

They do broker a lot of stuff out that you think they would keep. I am assuming they broker the high dollar loads and keep their own trucks on the cheaper accounts that they can't broker but have volume.

layoutshooter · Feb 1, 2011

If they monkey around too much they are going to start to affect business in a negative way.

davekc · Feb 1, 2011

From a carrier prospective it makes sense to them because they cover more loads. Might not provide the same level of excitement for their contractors.

Bruno · Feb 1, 2011

davekc said:
From a carrier prospective it makes sense to them because they cover more loads. Might not provide the same level of excitement for their contractors.

I agree Dave. Things are diffrent in this business than 10 years ago.

layoutshooter · Feb 1, 2011

We shall see. It is up in the air right now. It could dilute service and lower quality if they are not careful.

Ragman · Feb 1, 2011

Bruno said:
Things are diffrent in this business than 10 years ago.

The same can be said for all businesses. I have to work twice as hard to make half as much now in mine.

Moot · Feb 1, 2011

layoutshooter said:
We shall see. It is up in the air right now. It could dilute service and lower quality if they are not careful.

No it is not up in the air. It is on the ground. LTL freight transported by truck and rail. Did you read the article? Full story here

This is not about Custom Critical. What FedEx is offering their LTL customers is what other major LTL carriers have been offering for years. Same with intermodal. Look at any train carrying pigs and containers. I would wager that at least 30% of the pigs are sporting a LTL carrier's markings. And probbly 30% or more of the domestic containers are loaded with major LTL carriers freight.

layoutshooter · Feb 1, 2011

Moot said:
No it is not up in the air. It is on the ground. LTL freight transported by truck and rail. Did you read the article? Full story here

This is not about Custom Critical. What FedEx is offering their LTL customers is what other major LTL carriers have been offering for years. Same with intermodal. Look at any train carrying pigs and containers. I would wager that at least 30% of the pigs are sporting a LTL carrier's markings. And probbly 30% or more of the domestic containers are loaded with major LTL carriers freight.

I will reserve comment for a month or so. I will just say that some things have not gone as well as they should have. It has made me "uncomfortable". Hopefully things will get worked out in a month or so.

Moot · Feb 1, 2011

Read the article. This really isn't about you! While Custom Critical is a force in the expedite market, in the grand corporate FedEx scheme of things your division is but a pimple on a flea's rear end. Probably not even a pimple because a pimple would cause irritation and get noticed! Check out last years annual report and see what Custom Critical's contribution to the corporate coffers was. You may need a microscope and working knowledge of footnotes and asterisks.

layoutshooter · Feb 1, 2011

I reserve further comment for a month. Nothing happens in a vacuum and neither has this. It has affected my operation and that is why I feel uncomfortable. I hope that this is better in a month. If not, I will decide then what I should do.