large fleet

jelliott

Veteran Expediter
Motor Carrier Executive
US Army
Since you brought it up do you offer a pay incentive for your large fleet owners to get them to come to your company vs loosing them to one that does your comment makes me wonder if you do? .

No we do not offer a different pay, incentive, bonus, back end payout or sign on package for a fleet owner over an individual owner operator. We are often not the choice of many of the large fleets because of this but we are ok with that. I feel if you bring on a fleet primarily through a big sign on bonus for instance....they will leave down the road for the next big sign on bonus from someone else. It's business and a lot of large fleets choose to do that. The same way we choose not to do it on our end of the business. Both ways are fine, just a matter of preference I guess.
 

rollnthunder

Expert Expediter
Everything is relevant. Probably depends on what that mileage guarantee consists of and what their line haul, DH, & FSC rate are.
They pay the same rate for all miles plus FSC all you give is the first 50 of DH. I dont know what the difference is between tractors and straights and sprinters but im sure they will be more than glad to help any one with that info.The FSC is set every Tuesday and is based on DOE national average. Hope the info helps anyone looking for info.
 

westmicher

Veteran Expediter
No we do not offer a different pay, incentive, bonus, back end payout or sign on package for a fleet owner over an individual owner operator. We are often not the choice of many of the large fleets because of this but we are ok with that. I feel if you bring on a fleet primarily through a big sign on bonus for instance....they will leave down the road for the next big sign on bonus from someone else. It's business and a lot of large fleets choose to do that. The same way we choose not to do it on our end of the business. Both ways are fine, just a matter of preference I guess.
Fleet Owners that focus on CASH, can miss out on the intangibles that make it easier (more pleasurable) to live in this crazy environment... like what's it worth to have a recruiter that is really street smart and has your back, especially when you really need a little backup? Or a Carrier Owner that would sift through a thousand bits of information everyday even if only one (or none) panned out? Or a company that really invests in presenting the best to our customers even though it would be "penny-wise" to skimp out and be like the rest? There's a lot more to our business than our checking account and I love the fact that our carrier operates the same way!
 

usafk9

Veteran Expediter
How is it, that a certain "large fleet" at Fedex has so much favor? I understand they have lots of trucks on with the company, but what about everyone else out here? I don't understand how these companies they are signed on with, cannot see why they lose so many good teams because of the games played. The large fleet has their own dispatchers at Fedex (i know because at one time i worked for them and they told me straight out.) They said they have dispatchers who pick the freight by hand for them. Never thought this was fair when I worked there. Got every load we accepted, no matter what. Always got long loads too. Could be 10 people in front of you on the weekend, didn't matter. Never got stuck.

Left for better opportunity, and just don't see how this is a fair business practice? Now sitting and watching all the trucks leave, but never even seeing the offers come across. Just don't understand why these companies let them have such control. Is this why so many people are leaving?


Not so sure I'd agree with your assessment that there is preferential dispatch. Someone told me once that the former Mrs. USAFK9 was a wholesome, pure woman. Wait, that was her. I would agree that at least one of these large fleets was getting $.05/loaded mile on their O/O program, where the fleet owner was getting that kickback over and above the agreed rate between the carrier and the driver(s). I realize there HAS been preferential dispatch, but I wouldn't go so far as to guess that ES was getting loads completely unseen by other trucks. They were the first surface trucks on the first flat-rate program, so those trucks DID get preferential dispatch....for those flat-rate loads. JJoerger was on that same program.

That being said, I believe that 'handing over' a large chunk of anyone's business is a horribly dumb idea. What if that fleet owner wants to leave when their next contract renewal negotiations don't go as planned? That carrier will suffer. That is one gaping hole to leave in a fleet, and the customers, especially ones with specialized freight, will look to someone else to serve them.

There is little differentiating the Fed's surface freight biz from any other carrier. Not sure if there are many surface trucks that have left or not. Seems to be the ones with any qualifications or specialized equipment are leaving in droves. The constant downward spiral of requirements, both in equipment and driver qualifications, is telling. I say that to say this: I wonder if they can go back to these mega-fleets to ask them to fill these gaping, specialized holes.

Dynamite 1 is right: Bad business model.
 

davekc

Senior Moderator
Staff member
Fleet Owner
No we do not offer a different pay, incentive, bonus, back end payout or sign on package for a fleet owner over an individual owner operator. We are often not the choice of many of the large fleets because of this but we are ok with that. I feel if you bring on a fleet primarily through a big sign on bonus for instance....they will leave down the road for the next big sign on bonus from someone else. It's business and a lot of large fleets choose to do that. The same way we choose not to do it on our end of the business. Both ways are fine, just a matter of preference I guess.

You mean my check is not in the mail? Just too good not to use. :cool:
 

Dynamite 1

Moderator
Staff member
Fleet Owner
They pay the same rate for all miles plus FSC all you give is the first 50 of DH. I dont know what the difference is between tractors and straights and sprinters but im sure they will be more than glad to help any one with that info.The FSC is set every Tuesday and is based on DOE national average. Hope the info helps anyone looking for info.

So they dont pay all miles, they pay all but the first fifty at a flat rate and a flat rate for fsc. Im sure its a good program but its what many of us have been trying to get away from, meaning the flat rates for mileage and fsc.
 

rollnthunder

Expert Expediter
I stated they paid all miles less the first 50 Earlier in my comments you may have missed it. I stated clearly they pay all miles less the first 50 of dh and to be clear the dh miles are paid at the load rate plus Fsc. The nice thing is I know at the end of my 3 weeks out I make no less than x amount because of the guarantee miles as long as I'm in service and ready to roll. I can sit in a truck stop and still make enough to pay the truck payment, some house bills and put food on the table. I won't get rich off of it but I also won't fall behind on payments if the freight dries up and there is a several month slow down or even the slow months I can sit in a truck stop and know i still make a pay check. This makes the company work harder for me the driver or else they still have to write me a check and I'm sure they are not into just giving money away. Don't take my word on things call and ask them questions Jim and Darryl both have been in the business for many years and Darryl was a owner operator who worked for a lot of the companies prior to active.
 
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butterfly610

Veteran Expediter
I worked for ES so I know they DO have preferential dispatch. Straight from their driver managers mouths we were told more than once they have their own dispatch group and they handpick the loads for their trucks. They are guaranteed a certain amount of miles. When we worked for them, we NEVER and I mean NEVER were offered a load that we didn't get. Now we don't work for them and we go through what all the other trucks at FedEx deal with. Going down the line for the loads and not getting all of them. We were in Dallas one Friday. There were 9 trucks ahead of us. Wasn't 1 hour later, and we got a call to pick up a load 350 miles away that was over 1200 miles. We were always deadheading to pick up loads, getting loads bid on for us, and never hardly waited.

I've worked for them at another carrier years ago, and it was the same there. There is no convincing me they don't get special treatment. We also had fleet coordinators to get home time when it wasn't offered to anyone else in fedex. FedEx even told us that. They get their way with everything, and personally I don't think they are being fair to other truck owners or fleets. I just think it should be a more fair playing field. I mean, they knew what this business was when they got into it and invested into trucks. What makes them anymore special than anyone else??
 

jjoerger

Veteran Expediter
Owner/Operator
US Army
To be honest if I had that many trucks I would want some preferential treatment myself. Fair? Absolutely not. Business is business.
 

dstites24

Rookie Expediter
I worked for ES so I know they DO have preferential dispatch. Straight from their driver managers mouths we were told more than once they have their own dispatch group and they handpick the loads for their trucks. They are guaranteed a certain amount of miles. When we worked for them, we NEVER and I mean NEVER were offered a load that we didn't get. Now we don't work for them and we go through what all the other trucks at FedEx deal with. Going down the line for the loads and not getting all of them. We were in Dallas one Friday. There were 9 trucks ahead of us. Wasn't 1 hour later, and we got a call to pick up a load 350 miles away that was over 1200 miles. We were always deadheading to pick up loads, getting loads bid on for us, and never hardly waited.

I've worked for them at another carrier years ago, and it was the same there. There is no convincing me they don't get special treatment. We also had fleet coordinators to get home time when it wasn't offered to anyone else in fedex. FedEx even told us that. They get their way with everything, and personally I don't think they are being fair to other truck owners or fleets. I just think it should be a more fair playing field. I mean, they knew what this business was when they got into it and invested into trucks. What makes them anymore special than anyone else??


Well let me see if i can help with the questions at hand. I can assure you our program is equal for all! We pay the same rate no matter if its a O/O of 1 truck or a fleet owner. There isnt any back end loading of a bonus or big incentive packages. I was a previous O/O in the expedited business and when we talked about starting this program we talked about things that my boss and I didn't like at other company's and what we did like and made sure our program was going to be equal for all of our trucks that are here. We don't give them first dibs at freight its a simple first in first out as long as your truck meets the customers needs and you are able to run and all the dispatchers work for all the trucks! Now some people may think a large fleet owner should be able to negotiate higher rate that's fine but we don't do it. IT can cause a problems down the road with the guy who may own 2-3 trucks and that guy may quit because the larger fleet gets more per mile. I would rather grow our fleet at a slower pace and help the owners that are already here turn into fleet owners. We have gone from starting in November 2012 with no trucks to a fleet of 60 sprinters, straight trucks and tractor trailers as of today. We have a very low turn over rate with our O/O which we are very proud of. I think a lot of that has to do with us being small enough to care , getting to know the drivers and most of all keeping them busy. I will be more than happy to discuss our program with anyone that is interested in possibly coming on with us.
 

fr8hlr521

Active Expediter
They pay the same rate for all miles plus FSC all you give is the first 50 of DH. I dont know what the difference is between tractors and straights and sprinters but im sure they will be more than glad to help any one with that info.The FSC is set every Tuesday and is based on DOE national average. Hope the info helps anyone looking for info.

I have never liked the idea of "giving" the first 50 miles (or 10, 20, 100, etc). It may be a good thing to pitch to a customer, but in real life there are no "free" miles. If you give away, say 100 miles a week, that's over 5000 miles a year. About 5% if you run 100k. Now, I just don't get 5% of my fuel free, and my bank has never offered me 5% back on my truck payment. I also do not believe that the folks in dispatch, admin or the shop volunteer their first hour each day...nor should they. For a business owner, every mile is an expense and rates always need to be converted to all-miles. Otherwise your real rate-per-mile is inflated, and gets even worse at the end of the month when the odometer vs. dispatched miles is reconciled. IMHO.
 

fatboy1

Veteran Expediter
Look into Active Motor Carrier they seem to be a great up and coming carrier and do what they say. The Active Aero Group company has been around for a long time and many carriers pull freight off their load board. They are looking for more owner operators and may have a fleet owner with a open truck. They talked about this very topic when we were in orientation and wont allow any employee to own equipment and they are a 100% O/O or Fleet owner which is great they don"t own any of the trucks in the fleet and dont offer special deals for the larger fleet owner.
I saw that big fleet trk at the Fed with several trks on there now. Seen them in In at the J and thy were hush hush about it.
 

rollnthunder

Expert Expediter
I have never liked the idea of "giving" the first 50 miles (or 10, 20, 100, etc). It may be a good thing to pitch to a customer, but in real life there are no "free" miles. If you give away, say 100 miles a week, that's over 5000 miles a year. About 5% if you run 100k. Now, I just don't get 5% of my fuel free, and my bank has never offered me 5% back on my truck payment. I also do not believe that the folks in dispatch, admin or the shop volunteer their first hour each day...nor should they. For a business owner, every mile is an expense and rates always need to be converted to all-miles. Otherwise your real rate-per-mile is inflated, and gets even worse at the end of the month when the odometer vs. dispatched miles is reconciled. IMHO.

I agree but most company's have some kind of policy about this and consider Active pays the same rate loaded, DH relocations or DH to get a load im ok with it I just give up the first 50. Ive worked for other company's where all you get is .20 or .30 CPM and you give up 100 miles to relocate a straight truck and when your dh 300 miles at other those company's it sucks! But I don't mind DH 300 miles at Active because I give up the 50 and after that its full rate with FSC!
 

davekc

Senior Moderator
Staff member
Fleet Owner
I agree but most company's have some kind of policy about this and consider Active pays the same rate loaded, DH relocations or DH to get a load im ok with it I just give up the first 50. Ive worked for other company's where all you get is .20 or .30 CPM and you give up 100 miles to relocate a straight truck and when your dh 300 miles at other those company's it sucks! But I don't mind DH 300 miles at Active because I give up the 50 and after that its full rate with FSC!

Everything is relevant. You are also running for a lot less per mile. Have to compare everything.
 

fr8hlr521

Active Expediter
I agree but most company's have some kind of policy about this and consider Active pays the same rate loaded, DH relocations or DH to get a load im ok with it I just give up the first 50. Ive worked for other company's where all you get is .20 or .30 CPM and you give up 100 miles to relocate a straight truck and when your dh 300 miles at other those company's it sucks! But I don't mind DH 300 miles at Active because I give up the 50 and after that its full rate with FSC!

Here is how I never give the "free" miles....I determine what loaded+empty miles are and do the math from what the linehaul+FSC is to get the all-mile per-mile rate. If it meets or exceeds my personal minimum, all things considered (weight, destination freight area, needs of the carrier, etc.), I accept. It's a business...per-mile revenue minus per-mile expense equals wife's shopping money!
 

Dynamite 1

Moderator
Staff member
Fleet Owner
Here is how I never give the "free" miles....I determine what loaded+empty miles are and do the math from what the linehaul+FSC is to get the all-mile per-mile rate. If it meets or exceeds my personal minimum, all things considered (weight, destination freight area, needs of the carrier, etc.), I accept. It's a business...per-mile revenue minus per-mile expense equals wife's shopping money! 

sounds like someone we know !!!!!!!!! LOL
 
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