Hows the the new FedEx CC FSC program working for

ATeam

Senior Member
Retired Expediter
RE: Hows the the new FedEx CC FSC program working

Before the new program went into effect, we had a minumum rate per mile that was required for us to say yes to a FedEx load offer. After the new program, we have the same. While FedEx sliced the deadhead/tolls/tarriff/fuel surcharge pie differently, our approach remains the same. If the load does not meet our minimum, we do not take it (rare exceptions are made in certain circumstances).

We've been running just as hard and doing just as well under the new program as the old, actually a bit better, but I won't bank on that since we are so early into the new program.

Happy campers here!
 
G

guest

Guest
RE: Hows the the new FedEx CC FSC program working

20% lost or more is right. $1.13 per mile for a Haz Mat C load with 58% FSC is a lost in my book. And that is a load that one of our trucks did just to get moving again.

Drive Safe
David Mayfield
 

pelicn

Veteran Expediter
RE: Hows the the new FedEx CC FSC program working

The new pay plan isn't working for our owner. We did the calculations ourselves, because our owner shows us all the settlement sheets, and it isn't a pretty sight. In order to stay with our owner, looks like we'll be moving to a different company soon.
 

mrgoodtude

Not a Member
RE: Hows the the new FedEx CC FSC program working

Dave I think it stinks thus far but in all fairness to the Fed alot of variables changed at the same time they rolled out the program.
Fuel took a dive after the announcement as did the fuel surcharge.
Freight this year is not as plentiful as years past.
Changes in the industry such as buyouts, switch to LTL fortification leave some saying where's the beef?
Only time will tell but do you have an exit strategy?
Mike and Cyn
 

davekc

Senior Moderator
Staff member
Fleet Owner
RE: Hows the the new FedEx CC FSC program working

1.13 a mile for a hazmat load is more LTL freight rather than expedite.



Davekc
owner
22 years
PantherII
EO moderator
 

RonnieJ

Seasoned Expediter
RE: Hows the the new FedEx CC FSC program working

>I'm sure I just missed this - but - could someone post
>exactly what their new FSC program is that is not working
>out for the drivers?


I can't seem to figure it out either? It looks very confusing.
I am surprised no one has explained it.

Ronnie
 

greg334

Veteran Expediter
RE: Hows the the new FedEx CC FSC program working

Well seeing some don't work for FedEx or don't get a chance to read other threads, the issue is that we as owners are now faced with a flat rate for the FSC, which translates into not getting 100% of the fuel surcharge and less money for many who based their business model on 100%.

FedEx's position is that we will be paying $1.20/gallon with this new program (or something like that) but could have also given up access to the fuel isles at express, ground and freight for fuel at $1.25/gallon.

Yes it is true that many customers do not give a FSC, some are discounted because of contracts (which brings up another point that we were told that with the contracts coming to an end, FedEx will pursue more out of the contracts for us) it does not seem to be working the wy that they thought it would be.

There are a few other things, like the toll program but I'll let others explain.
 

RonnieJ

Seasoned Expediter
RE: Hows the the new FedEx CC FSC program working

Thanks for answering. But it is still not making sense.
Isn't holding back the fuel surcharge illegal? What do they do with whats left over? If all of that is true, I wonder if ooida knows. It sounds like stealing if you ask me.

Ronnie
 

pelicn

Veteran Expediter
RE: Hows the the new FedEx CC FSC program working

" 1.13 a mile for a hazmat load "

We were also offered load like that last week:(
 

greg334

Veteran Expediter
RE: Hows the the new FedEx CC FSC program working

>Thanks for answering. But it is still not making sense.
>Isn't holding back the fuel surcharge illegal? What do they
>do with whats left over? If all of that is true, I wonder if
>ooida knows. It sounds like stealing if you ask me.

Ronnie
No holding back FSC is not illegal.

What they hold back goes into the revenue of the company.

Yep OOIDA knows.
 

Bugsy Siegel

Seasoned Expediter
RE: Hows the the new FedEx CC FSC program working

Fedex keeping *any* of the FSC sounds like a ripoff for drivers. Tolls and such should have already been figured into the base rate as they don't change frequently.

Just my $.02
 

cowboyz

Expert Expediter
RE: Hows the the new FedEx CC FSC program working

Im kinda wondering the same thing, are people accepting it like it is? or is it a boiling furnice? It seems to have died down, is all well with contractors? or a new beginning for contractors?







You got to stand for something
Or you'll fall for anything!!
 
G

guest

Guest
RE: Hows the the new FedEx CC FSC program working

It hasn't died down about the FSC program. I think as long as the other company's use it as a selling point to try to pull driver's away from FedEx it will be talked about. We pay 100% of the FSC FEDEX don't and thier going to keep telling people that until FedEx pay's the O/O 100% again. It's a great way to get trucks not to come on with FedEx. I'm sorry to say.


Drive Safe
David Mayfield
O/O since 1/27/95
 

cowboyz

Expert Expediter
RE: Hows the the new FedEx CC FSC program working

Does this mean Fedex is getting rid of some contractors? More trucks than freight? If contractors leave, depending on the type of unit(s) they take with them, want this allow the compitition to pick up some of Fedex's customers? Im not real smart but I don't think this sounds just right, Where will the stock prices be when is all said and done. What will FECC do to get the business, and the loyal contractors back, That helped put Fedex where it is today. This is all like a big nightmare, who really wins in the end? Its a vicious cycle. I wonder what my part is in all of this??????










Just keeping my side of the street clean.
 
G

guest

Guest
RE: Hows the the new FedEx CC FSC program working

Well, I hope that this doesn't happeen, time will tell. When good contractors leave it has an effect everyone. When you lose trucks and the fleet gets smaller, then the customer calls and you don't have trucks to service them so they call someone else.

Drive Safe
David Mayfield
O/O since 1/27/95
 

ATeam

Senior Member
Retired Expediter
RE: Hows the the new FedEx CC FSC program working

cowboyz,

Would you be so kind as to introduce yourself and your expediting background to readers? I see you have less than 5 posts to your credit and seem preoccupied with stiring the FedEx pot; offering a lot of emotive questions but little else. Who are you in real life?
 

ATeam

Senior Member
Retired Expediter
RE: Hows the the new FedEx CC FSC program working

I posted the following a few days ago in another thread. It seem appropriate here too.

The new FedEx pay schedule went into effect September 18th. Because Diane and I are predispatched through Friday, October 20th (and if we assume no loads cancel), we can evaluate our first month under the new FedEx pay schedule with real numbers.
I looked at three 30-day periods; the current 30 days, September 18 to October 17, 2006 (new schedule); month ago 30 days, August 18 to September 17, 2006 (old schedule); and year-ago 30 days, September 18 to October 17, 2005 (old schedule).

In these three time periods, our run counts were about the same, miles (loaded and deadhead combined) are higher under the new schedule, gross revenue is higher under the new schedule, and the pay per mile is lower under the new schedule (owing more to deadhead decisions we made for personal reasons than anything else).

Regarding fuel, diesel was $3.15 a year ago (national average, 10/10/05), and $2.51 now (10/09/06). Thus, while fuel came down (and the surcharge with it), our revenue went up.

What conclusions can Diane and I draw from the numbers at this point?

None at all.

It is too early to tell from the numbers how the new schedule will affect us in the long run. Our decision to go out of service for a day to sleep, or to pass up a load so we can finish a family visit, or to deadhead a great distance for a load we would otherwise decline because we want to go the direction that freight is going, affects our numbers as much as the new schedule does.

After running several months under the new schedule, such variables will blend together and lose their ability to weight the numbers one way or another. For now, our numbers give us no reason to be unhappy with the new schedule or consider a change of carriers.

I know there is a lot of feeling out there about what FedEx should do or not do, what they should or should not care about, and how executives there should or should not feel about truck drivers. Diane and I are not having a "should" conversation. We're having a numbers conversation. As real-world numerical results become available, we will base our decisions on them.

Thirty days into the new schedule, it is so-far, so-good for us. Thus, it has not even entered our mind to incur the down time and expense of a carrier change. We have no reason to risk a carrier change that could very easily become a jump from the frying pan into the fire.

It is entirely possible that other folks would have different numbers. Indeed, new schedule or old, it is common for similar trucks to have greatly-varying numbers over short periods of time.

I recommend two things:

A. Base your decisons on your numbers, not on how you feel.

B. Give the numbers time to develop and time for the variables to fade in significance. One month of numbers under the new schedule is not enough to tell the story.
 

cowboyz

Expert Expediter
RE: Hows the the new FedEx CC FSC program working

So whats going to happen to the contractors that didn't sign the new lease? Because they didn't agree with it, or they saw how much money would be lost on the contractors bottom line.When I bought this truck, the FSC under the new agreement would have lost 1480.00, or should I say the diffrence was -1480.00 either way you look at it, I would have been out 1480.00. now this was for just 1 month, w/1 truck,now where is all that money going? And whats the long term effect. I wonder how many contractors are keeping tabs on there bottom line, (New program vs Old) And if they are they must have
some deeeeeep pockets.




keeping it in today
 

cowboyz

Expert Expediter
RE: Hows the the new FedEx CC FSC program working

OOPS sorry, I did not know you had to have x amount of post to ask questions, You might say im a contractor who is concerned with the future of my business. And how many post I have has nothing to do with that. But thanks for the info its been helpful. This is one of the things people seem not to want to talk about... So be it.







How to handle the effect?
 
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