RE: Hows the the new FedEx CC FSC program working
Greg, I didn't forget that we're contractors. Far from it. It's one of the things that allows me to complain about stuff like the flat rate FSC. hehe
Make no mistake, tho, they aren't going to take any surplus and use it to try and get new customers, per se, or anything else to benefit the contractors, really. It gets added to their bottom line, pure and simple. Not that there's anything inherently wrong with that. Every dime a customer pays that doesn't go to a contractor goes to their bottom line, which is kinda how it works.
The FSC is just one of those things that just doesn't sit right when a company goes to a flat rate. I just wish they'd present it honestly to the contractos when they make the change, instead of painting a pretty picture with it. The primary reason for moving to a flat rate FSC is almost always one of two things. One is, to quickly and accurately get a valuation of the company or the division (usually, but far from always, in preparation for a sale or some other major financial change). And the other, more common reason, is to add revenue to the company in the form of increased load acceptance on loads that would otherwise be turned down (short runs or runs that paid little or no FSC) and to keep the surplus.
And while tinkering around with the FSC is a little "scummy", IMHO, the latter reason is a very valid one, and it's one that will help keep the company solvent, solid, and up and running, which does, in fact, benefit the contractors as a whole, even though most individuals will see less actual revenue because of it.
When Con-Way went to a flat FSC, I accepted it for what it was and remained there. Best way to handle it is to chalk it up to a cost of doing business, even if you don't like it.
