FedEx LTL Units Cut Fuel Surcharges

[dhalltoyo]

FedEx LTL Units Cut Fuel Surcharges

FedEx Corp.’s less-than-truckload FedEx Freight unit said Monday it will reduce its standard LTL fuel surcharge by 25%, effective immediately.

FedEx National LTL, FedEx Corp.’s long-haul LTL company formed from the former Watkins Freight Lines, also will reduce its LTL fuel surcharge to levels commensurate with FedEx Freight, the company said.

Fuel surcharges for both LTL companies are updated weekly, based on fuel prices published by the Department of Energy.

“FedEx Freight and FedEx National LTL are taking a leadership position in the industry by making changes to benefit our customers and the market as a whole,†said FedEx Freight Chief Executive Officer Doug Duncan.

“By significantly reducing our fuel surcharges, we offer immediate and long-term assistance to shippers who are facing both a challenging economy and volatile fuel prices,†he said in a statement.

Fuel surcharges at FedEx Express and FedEx Ground are not impacted by changes to the FedEx Freight and FedEx National LTL fuel surcharges, the company said.

FedEx Corp. is ranked No. 2 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.

Fuel surcharges at FedEx Express and FedEx Ground are not impacted by changes to the FedEx Freight and FedEx National LTL fuel surcharges, the company said.

I realize that it does not apply to FedEx Express and FedEx Ground (YET), but I do not even want to read anything abour FSC adjustments. Bean counters have a penchant for thinking what may reduce expense in a particular area can suddenly apply Carte Blanche across the board.

Considering the reduced rates and the ongoing rate wars, I am of the belief that FSC no longer be deemed a Fuel Surcharge, but in reality a Fuel Service Charge. What we can not get in rates should be offset by covering the cost of fuel to deliver the freight. Additionally, the Fuel Service Charge should adjust accordingly as fuel prices fluctuate.

The carrier can pass it along to the O/O via an addendum to the loaded mile rate or they can adjust the loaded mile rate to include the Fuel Service Charge.

 

[LDB]

So the saying now has to change to "say no to cheaper freight"?

Leo Bricker, 73's K5LDB, OOIDA Life Member 677319
Owner, Panther trucks 5508, 5509, 5641
Highway Watch Participant, Truckerbuddy
EO Forum Moderator
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Support the entire Constitution, not just the parts you like.

 

[dhalltoyo]

America's "JUST SAY NO" program to counter drug abuse has been a dismal failure. That is why I never had a "SAY NO TO CHEAP FREIGHT" sticker on the truck.

It is always easy to mouth the desires of one's heart, but it takes a little grit to get the job done.

When I normally see 20-30 cent FSC's and one comes across at 10 cents, I pass. Farouk and Gonzalez Trucking can carry that freight.

If I take that load, convincing myself that it will get me into a better area, and my truck is sporting a "SAY NO TO CHEAP FREIGHT" sticker, doesn't that make me a hypocrite?

All the bumper stickers in the world do not produce results.

I'd rather raise the awareness of the consumer rather than try to convince myself and other drivers that I am somehow proactive. Consumers are really the ones who are at the top of the rate chain.

If I were to have a bumper sticker, it would have to be:

IF YOU BOUGHT IT, A TRUCK BROUGHT IT.

 

[greg334]

I am sort of worried...

But....

I may be wrong about this, the LTL and National don't have contractor, aren't they all employees like Freight?

Someone correct me if I am wrong.

Express and CC are also contractors.

Maybe they are absorbing the cost to help keep the customers happy?

 

[RLENT]

Express drivers are not contractors - they are employees.

Ground and Home Delivery (a division of Ground) are contractors.

 

[x06col]

a FSC has always been a temporary shock absorber, to get the clown and clownettes of the world to tighten their belts. Seems nobody, (or very few) did. They think they actually belong to it (the surcharge) well.... hate to burst your bubble. I can't believe the number of typers on here that compute the FSC as the deciding factor for accepting a load. There are even people that rely on a FSC to make the truck payment, i'd imagine. We flat rate everything. Folks, if it don't pay, it just dont pay, so, leave er parked.

 

[jaminjim]

Xcol, most people I think decide on a run based on a few things, how much does it cost to run the load, and how much does it pay. Some people look at the cost and decide not to take a run that does not give them a profit. Or less profit than they made back in 2001. One way to help make the same profit is by the company charging an extra amount of money for the increased fuel costs. This was done in part because at the time no one knew if the fuel prices would come back down. So the Carriers did not raise the rate. I would think that you may have raised your rates in the last six years. or did you take a 15 cpm hit to your bottom line just for giggles?

 

[x06col]

jimbo, or, did you read the last line, or just get issed before you did???

 

[dhalltoyo]

Between 1976 and 1990 the paid air fare declined approximately 30% in inflation-adjusted terms. Passenger loads had risen, partly because airlines could now transfer larger aircraft to busier routes and replace them with smaller ones on shorter, low-traffic routes.

However, these benefits of deregulation have not been evenly distributed through the national air transportation network. Costs have fallen more dramatically on heavily trafficked, longer-distance routes than on shorter, lighter ones.

Exposure to competition led to heavy losses. Between 1978 and mid-2001 nine major carriers (including Eastern, Midway, Braniff, Pan Am, Continental, America West Airlines, and TWA) and over 100 smaller airlines had gone bankrupt or been liquidated—including most of the dozens of new airlines founded in deregulation's aftermath.


Ask yourself this question; "When did we start seeing FSC's?"

Air customers to pay for fuel January 21, 2000: 3:54 p.m. ET

With demand for seats still strong, most carriers announce fuel surcharges.

By Staff Writer Chris IsidoreNEW YORK (CNNfn) - Airlines are finding a source of relief for oil price shocks they've rarely tapped before: their passengers.

With oil prices hitting a post-Gulf War high Friday, three more carriers - US Airways, America West and Trans World Airlines - announced surcharges, charging customers $20 per round-trip ticket on virtually all domestic flights.
That meant that eight of the nine largest carriers in the country now had the charges, with only No. 7 Southwest Airlines (LUV), the Dallas-based discount carrier, holding off at this time.

FSC's had NOTHING to do with Oil Price Shocks. It had everyting to with ineffecient, unqualified and spineless executives who chose the path of least resistance when confronted with competition. Instead holding the line on fares, or raising them to offset the nominal increased cost of doing business, they whimped out and began adding FSC's to the cost of a ticket.

When we get some real business men back into the offices of corporate America, men who are not afraid to tell folks what it is going to cost to do business, then the FSC's can go away and rates can be adjusted accordingly.

PS. My decision to pass on low FSC's is simply to prick their consciousness when negotiating rates! I am not just going to sit around and complain. This is my way of trying to get something done.

 

[RichM]

Gregg I believe National LTL formerly known as Watkins uses drivers that are contractors.

 

[jaminjim]

X, sure I read the last line, and did not get "issed". Some won't do a run unless there is a 35cpm fsc, thats a little goofy. but not so goofy if there is a 5cpm fsc.