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

>As I have said before, it is too early in the new pay
>schedule to draw any firm conclusions about it.
>======================================
>If your former owner is losing a average of 1410 per month,
>per truck, it looks like he made a pretty firm conclusion.
>That is a truck payment for many. Across seven trucks as he
>articulates, that would be a concern.
>Waiting months and losing roughly ($10,000 per month) to
>figure it out looks to be extremely costly.
>
Fleet owners run their businesses in different ways and realize different results. I am certain the fleet owner in question believes his analysis is sound and his decision to change carriers is also sound. I wish him well in his new endeavor. Not being privy to his methods and thought process, I am in no position praise or criticize it. I can only share the results Diane and I are having under the new pay schedule. As I have said before, we see nothing in our new numbers that lead us to seriously consider a change to another carrier.
 

Jeepers

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

maybe they are using the "slush fund" to pay the salaries of all of the new dispatchers they hired a few months ago. :)
 

bigjoep89

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

Concrete truck driver 15 years
Concrete sales mgr, 13 years.
Expediter 1.5 years.

Here are the hard facts for me as a B-unit owner.

First month into new and improved pay plan.

Loaded mile avg down 13% In revenue
Avg miles down 11% In revenue

I do believe it is still too early to give a true evaluation but early indications do not look good. This 13% and 11% is the profit portion of the income. Could be something I am doing different as I will be looking into this.

God bless our military and vets.
 

ATeam

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

First month into new and improved pay plan.
>
> Loaded mile avg down 13% In revenue
> Avg miles down 11% In revenue
>
> I do believe it is still too early to give a true
>evaluation but early indications do not look good. This 13%
>and 11% is the profit portion of the income. Could be
>something I am doing different as I will be looking into
>this.

I am glad to see you using the loaded mile figure as a a basis for your analysis. I've been thinking too about how best to guage our first calendar month (October, 2006) under the new FedEx compensation schedule against previous months under the old schedule.

Numbers are funny things. People use them all the time to make the numbers say whatever they want them to say; sometimes to the point of self-delusion. A loaded-mile analysis is straightforward and objective.

However, FedEx pays money on deadhead miles too, and under the new schedule, it also pays fuel surcharge on deadhead miles. Those need to be factored in as well.

When we deliver on Monday, our October will be over. We're going out of service on the 31st for a day of truck maintenance. As I display the numbers on my spreadsheet and try not to impose my bias on them but instead let the numbers speak to me, I grow more convinced than ever that it is too soon to draw any meaningful conclusions about the new schedule. One month is simply not long enough to accurately guage the results.

Note that guaging the results is something entirely different than falling into rants about justice issues like FedEx keeping some of "our" fuel surcharge money, FedEx lining their pockets at driver expnse, or FedEx forcing us to haul cheap freight. With numbers, there is no good way to quantify justice issues. The numbers simply say what they say. The trick is to interpret them well.

In an attempt to do a meaningful, objective, and accurate analysis, I have been looking at our "all miles" number; meaning, the total of all deadhead and loaded miles, as stated on the load offers we accept.

My purpose is to guage one month's new-schedule results against previous month's old-schedule results. It is not to calculate our cost per mile, net results, or to factor in our relocation strategy or in-service figures. Those are different questions. This is about evaluating the new and old FedEx pay schedules, not our way of doing business. More specifically, it is about evaluating the revenue received under the old and new pay schedules, expressed as pay-per-all-miles.

For example, If we drove a total of 10,000 miles (deadhead and loaded combined) in a month, and received $15,000 in revenue, that month's all-miles figure would be $1.50. If we drove 10,000 miles and received $20,000, the number would be $2.00. If we drove 10,000 miles and received $10,000, the number would be $1.00.

While FedEx slices up the money differently under the new and old schedules, "all miles" under both schedules factors in all revenue sources under both schedules (tarriff, tolls, deadhead, fuel surcharge, accessorial charges, reefer differential, reefer relocation pay, and any other type of revenue FedEx pays under either schedule. Thus, "all miles" provides an apples-to-apples basis for old and new-schedule comparison, I believe.

So, with our October revenue and "all miles" numbers already known, and thinking I was really onto something, I went to work comparing our results under the old and new schedules.

I discovered that while I may be onto something using "all miles" as a basis for comparison, I also found out it would take several months of new-schedule history to draw any meaningful conclusions. That is because our monthly pay-per-all-miles figure varies greatly month to month.

I looked at the months from January, 2005 to October, 2006, with October 2006 being the only full month of numbers we have under the new schedule.

If I compare October, 2006 to September, 2006, our October "all miles" number is higher. If I compare October 200, to October 2005, it is lower. If I compare the October 2006 "all miles" number to each month since January, 2005, it was higher than some and lower than others.

I did see October, 2006 was the second-best gross revenue month we had in over three years with FedEx (November, 2005 was the best). While it is fun to see that, the analysis is not about fun. It is about comparing the two schedules.

I was quite surprised to discover how much our "all miles" number varies from month to month. The spread between the highest and lowest was $1.11. When I threw out the highest and lowest months to try to factor out anomalies, the range fell to $0.51.

With monthly "all miles" numbers varying by $0.51 or more, it seems to me that an "all miles" analysis is valid, but it will only be valid over a period of three months or more; six to twelve months would be better still.

Two final points:

1. Based on what I see in the numbers so far, one conlusion I have made remains sound. There is nothing there to motivate us to seriously consider a change of carriers. If the new pay schedule was as bad as some people would have us believe, it would have been evident by now.

2. The fuel price difference from October 2005 and October 2006 is significant, and it should be part of any fuel surcharge analysis that is done. The average highway price for number 2 diesel fuel in October, 2005, was $3.10. The October, 2006, average will be available in a few days. September, 2006, was $2.78. October's will likely be lower. (Source: Department of Energy).
 

nobb4u

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

Maybe I am being foolish but, why is everyone so concerned with the FSC and how much FedEx is getting. I am an owner operator and all I am concerned with is how much am I getting and if it is not enough then I will not accept the load and if it stays at a rate I can not live with I will find another carrier and if that still does not work I will find a new occupation. Everyone seem to feel that the carriers are responsible for our over all well being but it is a dog eat dog world and you have to look out for yourself. Also it seems that drivers are trying to micro manage the rates, if the load pays $2.00 a mile, take it even if there is NO FSC. It all comes down to how much does the load pay. I take into consideration the distance from my last drop to my next drop and if the rate is high enough to cover all the miles then I take the load, if not I refuse.

I also posted this statement on the other FedEx thread, just trying to make a point about how you really need to look at the bottom line. If the load pays $10.00 a mile and it is 15 miles long and takes all day it is a loser. YOu have more things to consider that the FSC.
 

bigjoep89

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

Concrete truck driver 15 years
Concrete sales mgr, 13 years.
Expediter 1.5 years.

WOW
 

truckerbse2

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

And there Nightcreature, you hit the nail square on the head. As bad as it is, where are you gonna go to make it better.
 

truckerbse2

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

IN answer to your question of what will happen to contractors who did not sign the "addendum" (remember this is not a new contract, it is done via addendum which they have provided for in the original contract...it is cya.) FedEx CC will now fully enforce your contract. The original contract states that you get (I think you are a DR unit) 58% of what the load pays and all accessorial charges. So instead of you getting the 100% which FedEx used to give us (and they have already made this clear to me on the phone that they did out of trying to be fair) you will now get 58%, but now with the new package it is actually 61% if I am correct on that new number. Hope this is helpful to you. Hang in there, stick to your guns and don't take the cheap stuff. You will be ok. We might have a rough couple of months here, but it will all work out. Where are you gonna go and do any better?
 

truckerbse2

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

You know I have to add this and while it may seem to be mean, I don't intend it that. But you do realize that by advertizing that wonderful week you just had you really hit a nerve with a bunch of the rest of us. You are one of very few trucks who get predispatched on "good" loads, let alone get that quick of a turn around from the west coast or even get to the west coast. You pointed a finger at cowboyz for stirring the FedEx pot and here you are essentially doing the same thing with the "na na na na na na look what great loads we get offered and you don't" message you posted.
 

truckerbse2

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

>
>WHY well as just a Driver It gets taken outa my wages
>
>Load pay - FSC - Tolls = XXX then Times My Percentage.
>
>Now so ya all know. Why as I driver I dont like the FSC.
>
>Now if I was an owner well maybe then Id like it.


Good point Kevin. Can I assume that your owner is paying the fuel and all tolls since he/she is keeping the FSC and Tolls? If not, you need to renegotiate that. I must agree with you that in your position the FedEx CC pay system is very confusing...for me as owner and driver it is only slightly confusing
;)
 

truckerbse2

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

> I cannot think of a single reason why the FSC should not be
>given 100% to the person who pays for the fuel - can anyone
>else?


I agree with you 100%, however, FedEx decided that they would be better able to cover loads with no FSC by using this system. I think it is also a tool used for the new "1 call system".
 

ATeam

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

>You know I have to add this and while it may seem to be
>mean, I don't intend it that. But you do realize that by
>advertizing that wonderful week you just had you really hit
>a nerve with a bunch of the rest of us. You are one of very
>few trucks who get predispatched on "good" loads, let alone
>get that quick of a turn around from the west coast or even
>get to the west coast. You pointed a finger at cowboyz for
>stirring the FedEx pot and here you are essentially doing
>the same thing with the "na na na na na na look what great
>loads we get offered and you don't" message you posted.

Before I posted news of ours, other drivers have shared news of their great weeks and no one has objected. I posted news of ours at this time because I do not believe the whole story is being told about the new FedEx pay schedule and runs. A PORTION of the full story is at least some trucks are doing OK under the new schedule.

There was absolutely no "na na na na na" intent in the post. When I hear or read of other drivers who have a great week or month, I am happy for them and inspired within. If they can do it, I can too, I tell myself. I then try to go to school on what they did so I can be better prepared to do the same.

Regarding cowboyz, I was wrong. I have publicly apologized to him in another thread.
 

truckerbse2

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

>see i didnt realize that i thought when a customers calls
>for a load to be shipped they tell them what it will cost
>and add a fsc to that load and send it to a driver
>i know they are customers that they deal with period that
>dont have fsc
>the good ole drug company
>or a discounted fsc but i thought it went to the owner or
>driver of the truck that acepts the load
>
>but looks like some owners were getting greedy for this
>slush fund and were asking for more that they should get

Truthsetfree, I think you are still confused. FedEx collects a FSC based as a percentage. They used to tell us what this was on the VRU. I think it is 19% of the load (based at current fuel rates). That is about the max allowed by federal regulations. So for ease lets say the freight charges on a load are $1000. and this customer pays a fsc, the total charges would be 1190 (1000 + 190). Where that $190 used to go to the truck that pulled the load it will now go into a kitty and be divied out at the rate of your current FSC. That is how we are now getting FSC on loads whether the customer pays it or not. I was under the inital impression that this would also be the case on toll money, but that does not seem to be the case. As nightcreature already pointed out we will do a lot more good taking these issues up with FedEx than just complaining here. For instance the info I just posted, you may verify this with your CC, that is how I discovered it.
 

Bruno

Veteran Expediter
Fleet Owner
US Marines
RE: Hows the the new FedEx CC FSC program working

Phil

Where do you get off on saying that the Whole story about the FSC program is not being told? I have seen you post on here like your Mr. Know it all about Expediting. To be honest there are many people that laugh about your posts. I REALLY DON'T CARE WHAT YOU AND YOUR WIFE DO ON THE ROAD. It's an insult to the people that have been doing this a lot longer that you, and for you to try to tell all the new folks on here what they should do when you are still a newbie yourself.

I'm not the King of Expediting or Mr know it all. I just tell it like it is. I have learned so Much from DaveKC,RichM,Terry,Dreamer,Mr Mccord, and I have been doing this for 13 years. Maybe you should take some lessons from these folks and stop trying to Make yourself look Good.

So don't EVER stay the whole story is not coming out About the FSC.
 

truckerbse2

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

>Phil,
>You missed the point - I said access not, exclusive use of.


careful what you ask for here....if you are allowed to fuel at FedEx Ground for $1.25/gallon, then there goes all of your fsc for when you choose to or have to fuel at the truck stop.
 

truckerbse2

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

I apologize too, I did not make my point well. I think possibly (not saying you are the only one to do so) before posting that kind of stuff, you need to realize that there are trucks who never get those kind of offers. Yes, I am a little cranky after a rough couple of weeks and being blatently dispatched around and lied to. I probably took that out on you. For that I am sorry. I need to take the advice I would generally give and that I am reading in many of the posts here to watch out for me and mind my business instead of expecting FedEx to do the right thing.
 

truckerbse2

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

>I still wonder about company A finding out company B's
>freight charges are being subsidized by their charges? What
>stops company A from using a carrier that pays all of the
>fuel charge they have paid to the drivers and not into a
>so-called slush fund for other companies?
>
>-mcbride-
>--What goes around comes around--

I think this is a very good point. A concern I have had from the get go on this as well. I am also concerned that the new pay increase will in fact be followed by a drop in the rate FedEx is charging.
 

davekc

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

It is funny Phil that you are the only one I have seen that endorses this new FSC program. Likely reason you aren't making friends. Much harder to bs the masses on this kind of item.
The posts speak for themselves......including ones of your former owners.








Davekc
owner
22 years
PantherII
EO moderator
 

greg334

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

Phil said; 'Before I posted news of ours, other drivers have shared news of their great weeks and no one has objected. I posted news of ours at this time because I do not believe the whole story is being told about the new FedEx pay schedule and runs. A PORTION of the full story is at least some trucks are doing OK under the new schedule.'

I have no doubt that some will do OK, but as you elude to this thing of a full story, please explain to me or everyone what is not being told. I am not trying to yank your chain Phil but this is getting a few of us concern and a couple depressed that they are not doing well. Maybe it is that these threads are being diluted and it is getting hard to follow things.
 

truckerbse2

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

Additionally, what about the trucks that were already sitting in PA waiting for a load or that got offered a short little run that didn't pick up until Monday 400 miles away and they didn't have any other trucks available to cover it.....why couldn't they have looked for a truck that was going to be empty (ie you) to cover that and give the trucks who have been doing the short stuff a good run for a change. My guess is you will say that they need to watch out for number 1 and not accept those loads. True to an extent, but then if somebody doesn't cover the undesirable loads, that customer will not give us the good loads. Problem at FedEx is that once you start doing the little stuff and buying the "I don't have any other trucks" excuse, that is all you get tagged with.
 
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