Flat rate???

jjoerger · Mar 25, 2014

zorry said:
The .75 plus fsc is so you'll take long deadheads. You gonna goof on their plan ?

There is a minimum rate all miles that I need to operate my truck. When we did flat rate a few years ago we were paid $1.00 per mile plus FSC for all dispatched miles. DHPU, loaded and DHPL all paid the same. We discovered that it was not enough to maintain and operate our truck and earn a decent paycheck for ourselves.

iceroadtrucker · Mar 25, 2014

Flat rate could be good if the pay is right.

zorry · Mar 25, 2014

What tolls aren't they paying, other than DHL ? Are they paying bridges ? The GWB comes to mind.

zorry · Mar 25, 2014

iceroadtrucker said:
Flat rate could be good if the pay is right.

Is this pay right, in your opinion ?

Daffyduck528 · Mar 25, 2014

zorry said:
What tolls aren't they paying, other than DHL ? Are they paying bridges ? The GWB comes to mind.

Almost all tolls scares me. A JFK run can cost a ton in tolls. What if they decide not to pay that runs tolls and I can't ask for additional $ to help with that.

iceroadtrucker · Mar 25, 2014

I have not seen the PAY If they pay Bridges and that in addition to the run pay it will be a good thing same goes for the fuel. Time will tell.

zorry · Mar 25, 2014

Pay E Surface
All miles plus fsc. No free miles
1.00 unloaded
1.50 loaded
$75 extra for hazmat
$125 per trip for NYC/Canada
If miles add up to less than $350 thats what you get for a mini.
If miles add up to $350-$500 you get $500.
Most tolls paid.
No DHL paid.
fsc will drop about 10% on tractors.

No negotiating.

Whatcha think, Fonzy ?

zorry · Mar 25, 2014

Oh yeah, a nickel more for WG. I think the nickel will be loaded only, and you lose the liftgate fee.
WG fleet, DOD stays as is. All reefer stay as is.

jjoerger · Mar 25, 2014

zorry said:
Oh yeah, a nickel more for WG. I think the nickel will be loaded only, and you lose the liftgate fee.
WG fleet, DOD stays as is. All reefer stay as is.

For now!

jamom123 · Mar 25, 2014

zorry said:
Is this pay right, in your opinion ?

In my opinion this is nowhere near what I need to make all miles. I understand they don't want to pay as much for deadhead, but for me my wheels are still turning. I have a feeling this is going to be bad.

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zorry · Mar 25, 2014

jjoerger said:
For now!

Hey man, I feel your pain.

I don't want to share your pain.

Daffyduck528 · Mar 25, 2014

I have to go and look back at what we've done ytd. I looked back at my last 2 runs and so far it looks like I'll be taking a 10ish% pay cut. I hope that number doesn't increase as I look back further.

zorry · Mar 25, 2014

A buddy is in the shop on a $4000 repair.
Lives in Ca so has to upgrade by summer.

I suggested that he tell them he needs a RAISE,not a cut !

jamom123 · Mar 25, 2014

Daffyduck528 said:
I have to go and look back at what we've done ytd. I looked back at my last 2 runs and so far it looks like I'll be taking a 10ish% pay cut. I hope that number doesn't increase as I look back further.

Looking back at my books it looks like I will be taking a lot more than a 10% pay cut.

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Daffyduck528 · Mar 25, 2014

jamom123 said:
Looking back at my books it looks like I will be taking a lot more than a 10% pay cut.

Sent from my SCH-i705 using EO Forums mobile app

I'm trying to remain positive. I'm pretty sure my percentage will sky rocket. I'm not thrilled about this move and I'm in the midst of trying to build a new truck and this really clouds all decisions up to this point. This pay system only makes since for large fleets that can run on narrower margins.

dieseldiva · Mar 25, 2014

Glad we got out when we did, I don't know anyone that works for less pay than they did 12 years ago. Jason Frederick included.

TeamCaffee · Mar 26, 2014

Over all of years here at FedEx the Flat Rate plan has been discussed and this is something I have always opposed.

In the back of my mind I knew it was inevitable that there would finally not be a choice but for FXCC to take this path. Some of the counter offers drivers came up with or even offers that dispatch would raise a load pay to someday was going to come to an end.

We like our nice truck and sleeper but our nice truck and sleeper does not make any more per mile then the OEM truck sleeper combination. Our nice accommodations does not set the rate per mile that any company can ask for. Market sets the rates and we adjust to the market until there becomes a shortage and then supply and demand will come into play.

What we did when we were surface for many years was to get every qualification we could, over time we outfitted our truck as a White Glove truck to be available for more loads, and we tracked our loads so we knew the good areas for our qualifications.

With this new flat rate we would once again adjust how we do business. No longer would we take loads to the middle of no where without a plan to get back to a busy area.

I would ask a lot of questions to learn how the new toll assistance will work. If the tolls are not going to paid in full I would watch the toll roads as that quickly eats into profit.

I would watch where the loads picks up and delivers. How much does the load weigh? What is the terrain like? If the load is heavy and I am going to have to climb mountains and not end up in the best area is the load worth it? Hauling a heavy load and getting poor fuel mileage might not be the best decision.

The FSC did not change for straight trucks so getting 9 MPG and up is going to be imperative. FSC can increase the bottom line as fuel prices go up.

As a single truck owner we could live with this plan and to be able to have a pet in the vehicle it would be worth it to us.

I keep track of our miles on each load and I know the average PPM for all miles for the past ten years. We could make this work if we decide to once again add a pet to our truck and this is not out of the question in our future.

xlr81966 · Mar 26, 2014

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jamom123 · Mar 26, 2014

I'm wondering when Fedex is going to start paying my truck payment, insurance, tag etc. Basically i'm an employee now no longer a contractor. This takes most everything i enjoyed about expediting out. I love how when they send out a letter or video that they know where not going to like they always say we understand your going to do what is best for your business. They are exactly right the best thing for my business is to let my truck sit in the driveway.

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jjoerger · Mar 26, 2014

I wonder what dispatch will use to "entice us" to take a load that we have declined? We are only motivated by enough money to profitably run the load and return to an active freight area. No negotiations will tie the hands of the dispatchers.

I understand a lot of contractors were asking for ridiculous rates. We did a lot of WG loads and lift gate loads last year.
Our average rate was $1.54. We did a lot of deadheading to pick up and took loads to bad freight areas.

Our new average rate with 20% deadhead will be $1.46. We will no longer be able to deadhead long distances or take freight to slow areas. We will no longer be able to tell dispatch what we think is a fair rate for a particular load and would be willing to run it for.

Hopefully we will get "more miles" to make up for the loss in rate.