Flat rate???
- Thread starter aimeejos
- Start date
Daffyduck528
Expert Expediter
Am I crazy to think this won't work out to the point that they will go back to negotiable percentage rate? Today a number of runs were sent to the truck. Some were aight and some were super short. I am doing 2 short runs back to back because I was able to negotiate a good price for the runs. In June I will just decline them. If I have a second truck and each subsequent truck I'll tell them to decline them. Anyone that takes them regularly will not make their truck note/insurance/Qualcomm fees/etc so they will leave the business or FDCC at best. Even drivers in large fleets that take a few of these shorties a week will have tiny settlements. The owners might can take a little cut into the profit but the drivers won't be able to. I don't see this as a sustainable system. Am I alone in thinking this way?
I would think fedex would have considered this prior to making the switch but maybe they want to try it out. When they have 50 to 150 loads cancel in the first day and another in the second day because contractors won't take the little loads I think they'll change their minds. Idk.
I would think fedex would have considered this prior to making the switch but maybe they want to try it out. When they have 50 to 150 loads cancel in the first day and another in the second day because contractors won't take the little loads I think they'll change their minds. Idk.
zorry
Veteran Expediter
jamom123
Expert Expediter
I know it's suppose to be better than express-1 but im not sure about others ones. Either way it doesn't matter to me flat rate is not what i signed on to Fedex for this is being forced down our throats. I agree with Daffy people are not going to be willing to take these loads anymore. For some reason Fedex thinks they will but anybody that knows what they have to make will just decline it. For me running solo in S/T if i take a short load i may not get anything else that day. $175 and $250 aren't worth me moving my truck anyway.
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https://www.youtube.com/watch?v=kTcRRaXV-fg Who on First I Caught YA.
runrunner
Veteran Expediter
I agree,every load has to count,cause before you know it,the week is over.
They don't seem to understand that part. It is NOT only the per mile, it's totals for the day. I may take that $250 load in the afternoon IF I had already made $1500.00, better yet if it was taking me to a better area.
The loss of relocation is really hurting them. A load might pay $2.50 per mile, until you DH back to where you started to get to more freight, now it only pays $1.25
Daffyduck528
Expert Expediter
I agree. I won't completely stop running short loads but the criteria is a lot narrower. I'll run a short load if it's a really early pick up and drop off or it's a really late pickup and drop off if offered after 4-6pm. Also I will accept if it gets me out of bfe to a better spot. But, for example, a boston to conneticut run that used to pay $3-$4/mile will no longer be worth taking. I'll just stay in boston until they give me a load to Chicago or so. Especially considering the boston to conn run probably involves using a pallet jack/lift gate/manual labor that isn't worth the $5 extra of pay @ $.05/ mile extra. This is going to be very bad for FDCC. I'm not sure how they don't realize it.
Is the t-val fleet so big they can absorb all the surface loads that regular surface people will no longer be doing? Because now t-val will be the only ones that can negotiate and they will be the only ones to bid on really high end loads along with these really short loads.
jamom123
Expert Expediter
I think they know better than to mess with there W/G division. Like they said they had looked at some similar options for W/G but decided not to change their pay plan. Of course they decided not to mess with them. W/G is way too specialized, they know better. As for surface they probably have a surplus of trucks and think they can cut the pay and still get the loads delivered. So what if some people leave.
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Daffyduck528
Expert Expediter
I think I mis spoke, what I was thinking was the only way these short, surface loads will be covered is if the t-val people bid on them to do them. If all the surface trucks say no then who else will do the loads? I'm pretty sure fedex won't just decide to cancel these short loads so they'll ask the t-val fleet to cover them. And they'll charge w/g t-val rates.
jamom123
Expert Expediter
Or they will call one of us and see what it takes for us to do it.
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Daffyduck528
Expert Expediter
They said no negotiation after June 1. When we were flat rate the best they could offer us was to give us a <75 status. Which in the flat rate fleet does help but it wasn't any additional $$$...
jamom123
Expert Expediter
Well then they will find someone else to haul it. I don't think a T-Val truck will mess with it.
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Daffyduck528
Expert Expediter
Yeah probably. But that doesn't fix the problem they claim they have.
Over the years the ability to negotiate has come and gone. What it boils down to is, dispatchers have to exculate up the chain of command for upping the rate it takes to cover the load.
My advise is to not roll over dead if the $ do not make sense. Chances are they make no sense to anyone else.
ChanceMaster
Expert Expediter
Just to Chime in here, I'm assuming the dispatcher just wants the load covered ( their job ) They probably just want to end their shift and go home. They probably couldn't give a rats azz if the company makes money, or we make money... Just cover the load. They probably spend ( or waste) a great amount of time sending, sorting, renegotiating rates, etc. load opportunity s.
With THAT being said, I always try to be fair minded in my negotiations. You always hear trucker talk ie " I add $1,000.00 to any load picking up or delivering to NYC ( I've heard this more than once).
I can imagine the dispatchers get mighty tired of "pie in the sky" counter offers as well. In a perfect world every run would be $2.50 a mile all miles.
With THAT being said, I always try to be fair minded in my negotiations. You always hear trucker talk ie " I add $1,000.00 to any load picking up or delivering to NYC ( I've heard this more than once).
I can imagine the dispatchers get mighty tired of "pie in the sky" counter offers as well. In a perfect world every run would be $2.50 a mile all miles.
Daffyduck528
Expert Expediter
Agreed. And I don't think the dispatchers are happy about this either. I think they know this has the potential to make their job harder.
ChanceMaster
Expert Expediter
Just a wild guess : The herd will be thinned of those SE owners that continually sought high rates and will not accept the flat rate after comparing numbers from last year. The "New Herd" will have never had a taste of a premium rate, and will therefore just go along with the program and the premium brand of FXCC will suffer.
Good business sense first, followed by driving ability. Like Zorry has stated, You better get a good handle on your numbers.
Good business sense first, followed by driving ability. Like Zorry has stated, You better get a good handle on your numbers.
I joined FX the day after Labor Day 2008. There was only 1 orientation that week so everyone for the week was in one group. Even with a double group there were only about fifteen people. All but one team were nicely dressed, professional looking people. They looked top shelf like you (used to) anticipate FXCC people to be. Compared to other orientations, where the herd is 3 to 4 times as many people per group and 2 groups per week meaning about 8 times the throughput the FX orientation was a pleasant professional surprise.
I have no idea how many a typical orientation has now. I suspect more than before. I suspect no more than middle shelf. I suspect it's moving more and more to a new herd and eventually will be the same old "cattle" as every other brand. I'm afraid the FX brand is no longer a brand of significance. More's the pity.
I have no idea how many a typical orientation has now. I suspect more than before. I suspect no more than middle shelf. I suspect it's moving more and more to a new herd and eventually will be the same old "cattle" as every other brand. I'm afraid the FX brand is no longer a brand of significance. More's the pity.