Interesting Email

tallcal101

Veteran Expediter
As both a contactor(for 7 years)for FECC and a customer for much of that time as well,I have been on two email and snail mail lists for most of this period.
It was helpful as a contrator to see what the customer was recieving,and vice versa as a customer to see what kind of BS was being slung to get my money.As I'm no longer a contractor,I'm now just recieving the customer propoganda.
A very interesting email arrived in my mail box a few days ago from FEDEX Truckload Brokerage.The letter featured a picture of Virginia Albanese,President and CEO of the brokerage group.The company logo utilizes the FECC colors.There is no mention of CC,and the truck on the piece is a white 18 wheeler with no logo.As a FECC customer,this advertisement is saying that the same service you used to call FECC for can now be done cheaper by another carrier.Perhaps not is so many words,but the message is clear.
If I was somewhat certain I made the right choice 5 months ago,I'm 100% certain after recieveing this latest piece of promotional material that my choice was in my best interest.
I'm curious how long this post will stay on the board.
 

ATeam

Senior Member
Retired Expediter
FedEx Truckload Borkerage is a new addition to the FedEx portfolio. As with all other components of the FedEx portfolio, and their developing efforts to cross-sell among divisions, I would expect more good than harm for Custom Critical contractors to come out of Truckload Brokerage.
 

davekc

Senior Moderator
Staff member
Fleet Owner
I don't see anything wrong with your post. I think you will see CC two day deliveries go this route because it is cheaper for the customer. That freight will generally be on trucks that stay in their frieght lanes. CC will still run the "out of network" frieght, or it goes to their broker board. That way the company incurs no losses.
CC will still do the exclusive use runs, as the customer waives that with the cheaper alternative.
That program introduced back in March was suppose to create alot of frieght for CC, but it never really did. I would have to think the price point was the biggest obstacle.
Most of the results you see now were predicted by many including myself a year ago, when they introduced their new LTL service and cut the FSC.
The end results combined with external competition were alittle too easy see.










Davekc
owner
23 years
PantherII
EO moderator
 

Lawrence

Founder
Staff member
>>>>>>I'm curious how long this post will stay on the board.

48 Minutes and counting....Stay tuned for more!

Lawrence,
Expediters Online.com

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arkjarhead

Veteran Expediter
I thought there was supposed to be some kind of deal between fed ex freight and cc to get the cc contractors more freight? how did that pan out or am I thinking of something else?
 

LDB

Veteran Expediter
Retired Expediter
I suspect it will stay indefinitely since there's nothing wrong with it I can see. Fedex confuses me. I can't make heads or tails out of their 37 different divisions and 53 different operating initials. I guess I'm just an old dog.

Leo Bricker, 73's K5LDB
OOIDA Life Member 677319, JOIN NOW
Owner, Panther trucks 5508, 5509, 5641
EO Forum Moderator
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Support the entire Constitution, not just the parts you like.
 

Moot

Veteran Expediter
Owner/Operator
Conway has a truckload brokerage division also. This is common among large diversified transportation companys. This allows a company to broker loads, service the customer and make a buck while doing it.
 

tallcal101

Veteran Expediter
With all due respect Phil(hey,why are you such a stranger on the west coast,still want to see that rig)but the good folks at CC do not have your best interest at heart.I'm suspect of the very nature of hustling CC customers with the opener "as much of your freight is not in need of expedited service"is a presumption that we as CC customers are confused about our freight needs.This message is not coming from FEDEX FREIGHT or GROUND,it's coming from the top dog at CC!!
As a customer of all divisions of FEDEX companies from time to time,I would now assume that I should call brokerage before I call CC as it maybe a cheaper method to get the expedited freight moved.Climate control is included in the ad,and now I know why the D Unit reefer freight went to #####.Now I know. Non T Val reefer is no longer a priortity,in my opinion,as stated in my now defunct post of a few weeks ago.Hey Lawence why was that post cancelled?
Did any of you catch the wild socks on the national sales manager on the last road video Jack did?WOW did they steal the show!!Not sure what he said but those socks ROCKED!!
 

RichM

Veteran Expediter
Charter Member
I kinda though this would happen when they introduced this service about 15 months ago. It seems like a disservice to CC Contractors to push alternate means of Fedex transportation under the CC banner.
 

ATeam

Senior Member
Retired Expediter
New readers of the Open Forum can discover by reading old posts that whenever FedEx does something new, a handful of people regularly rise to proclaim it bad for FedEx Custom Critical contractors.

Without getting into the good and bad of FedEx Expedited Freight Services (the program that was introduced a year or so ago) or the new FedEx Freight Brokerage service, I can only say that since EFS was introduced, business has never been better for Diane and me. I do not believe much of that has to do with EFS itself (though some of it does, as we have hauled a couple EFS loads). I do believe that EFS is producing indirect benefits for us.

I expect the same of FedEx Freight Brokerage. While it may not help us, it not likely to hurt us.
 

Jefferson3000

Expert Expediter
Hey Lawrence. How come you get to say d*ckwad on the forum, and we don't?

(Actually, I went back and censored myself....HeHe)


Drive Safe!

Jeff

Driver for 15 years
O/O for 13 years
OOIDA #829119

[em]"Let us be thankful for the fools. But for them the rest of us could not succeed." --Mark Twain[/em]
 

greg334

Veteran Expediter
“New readers of the Open Forum can discover by reading old posts that whenever FedEx does something new, a handful of people regularly rise to proclaim it bad for FedEx Custom Critical contractors.â€

Phil,
OK, should I be offended? Yes I should be but...

I really have to tell you that for some reason you don’t seem to be the normal CC contractor. Of course you don’t see it.

Yesterday I was with a number of my fellow FedEx contractors and we all seem to think that even though it looks like business is brisk, the numbers are down for everyone except for a few in the fleet (for some reason, can you figure out why).

Two of them in this little coffeeklache have been with the company longer than anyone I have yet met and they all say that FedEx is not leveraging the brand or sales force as they promised to everyone’s advantage and discounting freight too much at the expense of the common contractor – not my words but theirs.

They are not complaining to hear themselves complain but truly want to see the company do better than it has been. They, like me see the potential in the business and see how FedEx can gain more market share within the Custom Critical part of the business but fail to do so.
 

ATeam

Senior Member
Retired Expediter
>I really have to tell you that for some reason you don’t
>seem to be the normal CC contractor. Of course you don’t
>see it.

First, if there is a "normal" contractor out there anywhere, I'd like to meet him or her. What exactly is a "normal" contractor? Every contractor has a unique background and skill set that makes one not normal but unique. Production-wise, one might be average, above or below. When you talk about "normal" are you talking about production? If not, there is nothing abnormal about Diane and me. Any team with ordinary ability and a clean record can make the same career moves we have. There is nothing special about us regarding the expediting opportunity. What is available to us is available to others.

Second, for readers that are not familiar, EFS is explained in an article here:

http://www.expeditersonline.com/artman/publish/article_005543.html

Third, I have learned that unless I know the drivers personally and have met them more than once, it is best to take what they say about their earnings with a grain of salt. Some lie on the down side. Some lie on the up side. Some tell the truth. But if these are strangers, you never know which is which.

Fourth, the numbers may very well be down for the fleet. The economy is slowing down and a recession may begin in the near future. That is part of the reason why the Federal Reserve Bank lowered interest rates yesterday, to spark a slowing economy.

Fifth, you said, "...and they all say that FedEx is not leveraging the brand or sales force as they promised to everyone’s advantage and discounting freight too much at the expense of the common contractor –
not my words but theirs."

The word "promised" troubles me. Nowhere in any FedEx announcement or interview has FedEx promised anything regarding EFS. They talk about potential benefits and anticipated outcomes but no promises have been made.

Sixth, our numbers simply do not match up with the notion of discounted freight. As you know, the FedEx Custom Critical extranet web site allows contractors to see their revenue per loaded miles and revenue per all miles (approximate) for a give time period. Those numbers for us are up, not down. It's not all attributable to the fuel surcharge. Freight rates have gone up. Yes there are discounted shippers out there and loads that are not worth taking. When those loads are presented to us, we do not take them. No mystery there. No one at FedEx discounts freight at our expense because if the freight does not pay enough, it does not go on our truck.

Seventh, it is the nature of a corporation to want to see the company do better than it has been. In that, the company and drivers share a common interest. If the drivers you talked to "see how FedEx can gain more market share within the Custom Critical part of the business," I hope you encouraged them to share the ideas with the people at FedEx that can act on them. Or maybe you can share the ideas here. FedEx corporate people are known to read this site.
 

greg334

Veteran Expediter
“First, if there is a "normal" contractor out there anywhere, I'd like to meet him or her. What exactly is a "normal" contractor? Every contractor has a unique background and skill set that makes one not normal but unique. Production-wise, one might be average, above or below. When you talk about "normal" are you talking about production? If not, there is nothing abnormal about Diane and me. Any team with ordinary ability and a clean record can make the same career moves we have. There is nothing special about us regarding the expediting opportunity. What is available to us is available to others.â€

Oh Phil, come on. You and I know it is the people who have been moving along buying a used truck and making ends meet while not doing anything special like White Glove or reefer or whatever. See Phil what I am saying does not discount the wealth of information you have or the help you provide to others but you have did not step into this just by buying a truck and signing up with FedEx. You have been lucky and to your credit and your professionalism, you have stayed the course with FedEx by doing the same thing that has given you that success in the past.

“Third, I have learned that unless I know the drivers personally and have met them more than once, it is best to take what they say about their earnings with a grain of salt. Some lie on the down side. Some lie on the up side. Some tell the truth. But if these are strangers, you never know which is which.â€

The people I met yesterday, only three were new people I have never met before but the others I know, know them well, but it don’t matter – the message is the same message I got when I was out west and seeing people I have talked to before and people I have met last year. They are not going to deviate from the facts saying either way; they want to see the improvements that were told to us by the top people in the division that this is an improvement for us.

“Fourth, the numbers may very well be down for the fleet. The economy is slowing down and a recession may begin in the near future. That is part of the reason why the Federal Reserve Bank lowered interest rates yesterday, to spark a slowing economy.â€

Oh come on, again. There are a lot of factors beyond a recession/depression or the feds messing with the rates. One is sales. When I walk into a place and see a competitor’s sale person standing there openly telling our customer that they can beat our prices as my truck is being loaded, I worry. I call and tell FedEx about it and nothing happens. I do the best I can to help the situation out but as one customer told me, it is very frustrating to see these people come in to his business and not hear from us to reinforce our brand. I hear this from other people who I worked with in the past at the auto companies and as one owner/operator put it, it is embarrassing to see this happen when we know that we (FedEx) can do better for the customer and ourselves.

“Fifth, you said, "...and they all say that FedEx is not leveraging the brand or sales force as they promised to everyone’s advantage and discounting freight too much at the expense of the common contractor –
not my words but theirs."

The word "promised" troubles me. Nowhere in any FedEx announcement or interview has FedEx promised anything regarding EFS. They talk about potential benefits and anticipated outcomes but no promises have been made.â€

It can trouble you all you want, it is somewhere that we were told that we would see an INCREASE of opportunities with EFS, we haven’t. We were also told that the combined sales staff would increase business for all of us. Coming from the company, that tells me that they are promising to help us by making these changes. AND beside it wasn’t my word “promise†– it was someone else’s. I knew then and know the same now that the company is looking out for their bottom line and don’t blame them a bit for it, I am and others are asking just to help them improve that bottom line which helps us too.

“Sixth, our numbers simply do not match up with the notion of discounted freight. As you know, the FedEx Custom Critical extranet web site allows contractors to see their revenue per loaded miles and revenue per all miles (approximate) for a give time period. Those numbers for us are up, not down. It's not all attributable to the fuel surcharge. Freight rates have gone up. Yes there are discounted shippers out there and loads that are not worth taking. When those loads are presented to us, we do not take them. No mystery there. No one at FedEx discounts freight at our expense because if the freight does not pay enough, it does not go on our truck.â€

Yea, I know that you are doing well, we can all tell and I for one am actually happy for you but you can not tell me that you know what others are going through. I can only pass on what I am told from those who I trust and what I know in my situation. But again I will reiterate that you have not deviated from what you know works for you and only know what works for you. It is unlikely that you will strip your truck of the things that will limit your opportunities, right?

“Seventh, it is the nature of a corporation to want to see the company do better than it has been. In that, the company and drivers share a common interest. If the drivers you talked to "see how FedEx can gain more market share within the Custom Critical part of the business," I hope you encouraged them to share the ideas with the people at FedEx that can act on them. Or maybe you can share the ideas here. FedEx corporate people are known to read this site.â€

Phil, yes I do promote the idea to ‘talk to’ FedEx and pass on ideas when I can but I know a few who went to Green to talk to them about ideas and it has died with their CC. I for one would like to see some liaison program with FedEx but an open one not some closed door meeting thing. I know a few in management read these posts and write things down but I would rather hear more from the company directly on channels we can use to help all of us.
 

ATeam

Senior Member
Retired Expediter
>You have been lucky

I don't believe in luck and certainly don't count on it or factor it into any business decisions I make. The excpetion might be bad luck. That I plan for.

they want to
>see the improvements that were told to us by the top people
>in the division that this is an improvement for us.

A contractor hauling freight that originated through EFS seldom knows he or she is doing so. There is nothing in the offer or on the freight that would indicate how it got into the FedEx system. I happen to know about a couple EFS loads we hauled because a quirk in the offer led us to talk to the agent, which turned out to be an EFS agent. I know of two EFS loads we have hauled. We have probably hauled more without knowing it or needing to know. On a loading dock, there is no essential difference between EFS-originated and Custom Critical-originated freight.

>Oh come on, again. There are a lot of factors beyond a
>recession/depression or the feds messing with the rates.

Oh come on, indeed. There are lots of reasons freight may slow. I suggested one. You suggest others.

One
>is sales. When I walk into a place and see a competitor’s
>sale person standing there openly telling our customer that
>they can beat our prices as my truck is being loaded, I
>worry. I call and tell FedEx about it and nothing happens.

And when I walk into a customer's facility and see half a dozen FedEx Custom Critical trucks and contractors waiting their turn to load, and a competitor sales team walk in with food trays for the loading dock people to try to regain the business they lost to FedEx, sold not on price, but on quality, I am grateful. I e-mail FedEx and let them know what the competitors are up to. FedEx e-mails me back to say thank you and that they will consider food trays at that location too.

I
>do the best I can to help the situation out but as one
>customer told me, it is very frustrating to see these people
>come in to his business and not hear from us to reinforce
>our brand. I hear this from other people who I worked with
>in the past at the auto companies and as one owner/operator
>put it, it is embarrassing to see this happen when we know
>that we (FedEx) can do better for the customer and
>ourselves.

I am not the FedEx Custom Critical sales department or a company policy maker. But at a loading dock and with customers, I am FedEx. I can only do what one man can do; which is to act professionally and serve my customer well. I do what I can to hold up my end and trust FedEx to hold up theirs. In the four years we have been with FedEx, FedEx has proved worthy of that trust.

>It can trouble you all you want, it is somewhere that we
>were told that we would see an INCREASE of opportunities
>with EFS, we haven’t.

You may not have seen EFS results. I have. See comment above.

We were also told that the combined
>sales staff would increase business for all of us. Coming
>from the company, that tells me that they are promising to
>help us by making these changes.

Sorry, but I do not read "promise" into anything FedEx has ever said about EFS. You seem to do, which is your perogative, of course.

>“Sixth, our numbers simply do not match up with the notion
>of discounted freight. As you know, the FedEx Custom
>Critical extranet web site allows contractors to see their
>revenue per loaded miles and revenue per all miles
>(approximate) for a give time period. Those numbers for us
>are up, not down. It's not all attributable to the fuel
>surcharge. Freight rates have gone up. Yes there are
>discounted shippers out there and loads that are not worth
>taking. When those loads are presented to us, we do not take
>them. No mystery there. No one at FedEx discounts freight at
>our expense because if the freight does not pay enough, it
>does not go on our truck.â€
>
>Yea, I know that you are doing well, we can all tell and I
>for one am actually happy for you but you can not tell me
>that you know what others are going through.

Neither can you, but you are correct. I cannot and do not claim to know what all others are going through. That is precicely why I chose my words carefully when I said, "Our numbers (meaning Diane's and mine) do not match up with the notion of discounted freight." I did not speak of anyone's numbers but our own.

However, it would be a simple matter for any contractor to review his or her numbers to make a factual determination. Go to the extranet. Where you can access your loaded-miles and all-miles numbers, determine the numbers month by month for as far back as you can go on the site (about 1 3/4 years). Put the numbers into a graph. View the trends. Ours are up. It's as simple as that.

I can only pass
>on what I am told from those who I trust and what I know in
>my situation.

Same here.

But again I will reiterate that you have not
>deviated from what you know works for you and only know what
>works for you. It is unlikely that you will strip your truck
>of the things that will limit your opportunities, right?

Absolutely correct. We designed our truck to maximize our opportunites, not minimize; which is something any other contractor can do too...spec your truck to maximize your opportunities (according to the opportunities you wish to pursue).

>Phil, yes I do promote the idea to ‘talk to’ FedEx and
>pass on ideas when I can but I know a few who went to Green
>to talk to them about ideas and it has died with their CC. I
>for one would like to see some liaison program with FedEx
>but an open one not some closed door meeting thing. I know a
>few in management read these posts and write things down but
>I would rather hear more from the company directly on
>channels we can use to help all of us.

Panther has an impressive driver's council. At least it seemed that way at first when people first started talking about it here. It would be interesting to hear how effective it has proved to be over time, and to hear from the FedEx powers that be if such a council has been considered. That said, no council seat for me please. I'd much rather haul freight than deadhead to a meeting.
 

tallcal101

Veteran Expediter
Once again Phil,with all due respect,the last time I called into CC to get a rate for an expedited shipment,the call went to Brokerage.I was asked a number of questions regarding the nature of the shipment and the time versus expense of looking at the various options.
In the past,I was connected directly to CC and the rate was given and the order either placed or not.Since I only call for expedited shipments,trying to be talked out of the service seems a little odd when I really already know the service I want.
I'm quite certain when you call Panther for a rate and to perhaps book a shipment they do not try and talk you out of their preimium service.In my humble opinion it is why there are so many cut rate expedite loads these days with CC.They were not cut rate only 12 months ago.Brokerage is offering options,and they are not in the owners best interest,no matter how you my choose to look at it.Normal drivers are those who DO NOT have a custom rig that costs $200,000.00 to put together and never complain.It's EVERYBODY ELSE!! .
 

FREE TO FAIL

Seasoned Expediter
Well i can tell you that as an ordinary guy with an ordinary truck that FED EX CC for me is a joke. 3 weeks with them so far and i have made squat. Sit Sit Sit Crap run offer Crap run offer sit sit sit medieocre run offer, desperation forces acceptance. Now as a solo i know i have to accept that my run offers are limited but no way will i go to windsor ont. in rush hour to bring back a load to redford MI for 125.00. It costs 10.50 just to use the bridge and thats not factoring the wait time involved. Or how bout this one hazmat load for under $1 all miles. I never got any decent weeked runs and nothing from these people but "gee were sorry". Sorry dont pay the bills. I got a team driver starting this week but i am concerned i wont be able to keep him with no runs! The long and the short of it is that if things dont improve in two weeks i am de-identifying my truck. a team can go anywhere, why should i stay and starve. As far as the money i havent seen it yet from them, and i have run their hazmat, canada and lg runs. Trying to be a team player but it must be for the wrong team. sitting right now on a busted load where despite the fact i got to the pickup early no freight for me but i get a >75 big deal i burned 15 dollars in fuel and wasted an entire night. By the way that.75 was 6 1/2 hours ago and still nothing. it is thursday and i have made $250.00 THIS WEEK AVAILABLE SINCE MONDAY!.
I dont beleive FFCC has the market any more. Thats my opinion anyway. I dont care what the corporate shills say its all about the bottom line, if their making money good for them but for me its been nothing good with this company. Im sorry i went for the big box logo's their going to be some work to get off. 1/2 percent of nothing's still nothing. Best of the Best RIGHT! right now got a whopping $1.12 a mile average... boy just making it like their aint no tommorow. I cant afford to subsidize FEDEX CC. They want trucks they should pay to have them let them lower their 40% cut to attract more freight to keep their O/O happy. In a tough market everyone needs to take a hit even them.
 

greg334

Veteran Expediter
FREE TO FAIL
I have a bit of advice for you, seeing you dropped off in my back yard - Redford.

Don't take the three weeks as something to go by, judge things by the month and be patient. I know it is hard to do this but I thought about it week by week stuff and it drove me mad - since being cured, I look at two months past before I get upset about things unless someone keeps telling me that there is no problems out there. Either way, be patient and stay out of South East Michigan.

tallcal101,
Thanks man, I really needed that.
 

RichM

Veteran Expediter
Charter Member
My brother inlaw is a General Manager of a Cap,Hat and Fatigue clothing company in Patterson GA. One of their main accounts is the PGA Golf Touraments. They make the visors used by the golfers at the various touraments.

Thy have used FededxCC in the past when material hasn't arrived in time and they must ship 1000 visors to be at a location before tournament play starts. I introduced him to CC to him years ago and he has been pleased with the results.

Well he has also received a similar E Mail that TallCal posted about.Tonight he called me to ask about this program. He was told that he could save about 50-60% over CC rates by going with alternate Fedex transportion means. This came from Custom Critical. It makes you wonder ,what is going to happen to the CC contractors. I know of several that are constantly sitting or deadheading due to a lack of loads.

Yes there are self reassuring posts in this thread but overall I would begin to qustion this tatic on the part of CC. Weekend trips may very well be a thing of the past. The part that really gets to me is that they are keeping the revenue in the Corporation coffers but at the expense of so called individual business truck owners.
 

davekc

Senior Moderator
Staff member
Fleet Owner
I think it is an attempt to keep customers that are fleeing to other carriers for their expedite needs. I can't say I blame them as their loyalty is to their stockholders. Giving customers that cheaper option in a tightening economy is good for Fedex. They are going to maximize capacity on their company LTL trucks before they worry about independent contractors. As Tallcal mentioned, there will be less loads, and certainly more cheaper ones. That change in the FSC is saving them a ton of money. Nice bump in corporate revenue a month after they did that. That puts increased pressure on their competitors as well. The big difference I see is that a lot of specialized freight like WG/reefer is really starting to drop their rates. They were the only game in town and now competition from Panther, Landstar and a few others has changed the playing field.










Davekc
owner
23 years
PantherII
EO moderator
 
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