Late to the FedEx \ TVAL Party?

[jimby82]

My wife and I have been following the recent series of forum posts concerning the current state (the perceived state, at least) of the FedEx TVAL/WG/flat rate "situation" with some interest.

Now we have yet to haul our first load of expedite freight, in fact, we've not even made it to orientation yet, but I've made no secret of the fact of our desire to eventually end up in a White Glove truck. One capable of hauling just about any freight that might happen along, including TVAL / temperature controlled. And with us being fully credentialed to do so.

We felt (and still feel), that is a worthy goal, one that would put us in a great position to earn.

(I don't discount that there are other opportunities out there that may be "better", but with our lack of experience, these are limited, at least for the time being.)

We'll be starting out in a fleet-owner truck (as suggested) with us on the 40/60 split, with us getting 40%, and essentially not having any other work related expenses other than occupational insurance and taxes.

So now the wheels are turning and several questions come to mind. With the apparent changes that are occurring at FDCC, is our original plan still viable? Is there enough "other" specialty freight available (lift-gate, DOD, Art, White Glove) to make it a priority for us to get into White Glove rather than regular surface? How would our other potential carrier (Panther) stack up against FDCC?

With our prospective fleet owner, our take (40% of revenue) would be the same whether in a surface or a WG truck. And, we essentially have no investment tied up in the truck (other than our costs to get started and some personal equipment.) And yes, they have trucks on with Panther, and yes, they are big red Kenworths.

Now I am only asking for your opinions. I don't think anyone can answer with any real certainty. Just too many variables. Maybe the flat rate surface program is something to look at, in our case?

Thanks,
Jim

 

[OntarioVanMan]

I think you'll get too many opinions to validate one way or the other...
you've done your research, formulated your plan....just do it...get your feet wet and Feel the water....Good Luck Jim...

 

[Turtle]

Too many variables is right. But, you're not fronting a lot of cash to find out the hard way what those variables might be. I'd stick with your plan, even if you end up changing it dramatically down the road. You can't have too many credentials.

 

[Rocketman]

I think you'll get too many opinions to validate one way or the other...
you've done your research, formulated your plan....just do it...get your feet wet and Feel the water....Good Luck Jim...

I gotta agree with OVM (gritting my teeth). You have to start somewhere. One man's loss is another man's gain and working with the fleet your going with, there is a good chance you'll see plenty of freight. Friends of mine are still doing well with WG TVAL. And yes, they are stomping and screaming just as much as the rest of them. Their revenues are down for the year, but they have had some truck problems too that account for some of that. They are not with the same fleet owner as you, but they do drive a fleet owner's truck.

A year from now, you may be looking for something different, but for now, I would stay the course to see what shakes out while your also getting the experience and the credentials that will help with the next carrier should you need to move.

 

[Booker]

Hi Jim,
We were in your position a few years back (about 10 years) with very little knowledge of the business other than a few trade articles and conversations with FedEx expedite drivers on the loading dock of the business where I was employed. We signed on with FedEx and continue to be with them. I wish you all the best in this new job.

 

[teamjdw]

Stick with your plan,learn the biz.Two year's ago when my wife and i started it was gloom and doom then too.We also started out in a big red truck good place to get your feet wet.Good luck

 

[kg]

Go with your instinct and be not swayed with the uncertainties of those that are at a crossroad in life.

You seem to have a lot going for you, husband and wife team, a game plan , and fire in the belly.

With your cautious approach and little investment to lose, you are poised to make some money and see where expediting will take you!

Best of luck and be safe.

 

[jimby82]

Thanks to everyone for their replies and kind words of encouragement.

As everyone has to start somewhere, we'll most likely get ours at FedEx. Time will tell how this all works out. For the time being, we see no real reason to abandon our original plans as of yet. We will move forward with our selected owner, pick up credentials as we are able, and see what the world has in store for us.

Maybe six months or a year from now, we might see things differently. Time (and experience) will help us to find what works best for us and our situation. The flat rate program may work best for us. Or not. WG / TVAL may be an option at some point, and as things change, those loads that are now being loaded onto the company trailers may return. Or not.

At any rate, we'll try our best, work our hardest, and hopefully find what works best for us.

At this point, we are just looking forward to getting started! Not to rush things, but August really just needs to get here.

 

[leezaback]

welcome,any thing new in life has a learning curve. Mistakes made,mistakes avoided, talk to other drivers,maybe you can learn tips from there mistakes and might avoid some. We all need to have have goals, right now were in "change of life" time,'' and that 2x4 has hit us upside the head, were trying to put on our big kid panties and deal with it. we vent our fustrations then go forth and gather. Having a plan is a good thing, plan A, plan B, plan C. I have been with FDCC 11 yrs., be patient, Red KW-HMMM. what ever you do-do it with pride and do your best. take pride in yourself- yes you are representing the co.-but more important you are representing yourself -know matter how good or bad the day becomes-at the end of the the day I have to answer to me-(good thing I get along so well with myself) keep your goals, modify when need be and welcome to our world.

 

[layoutshooter]

Jim, you are OK. In fact, you in the "cat birds seat" so to speak. You are new, you have a ride that is costing you nothing. You can learn and watch. You have time to see how it all shakes out. Your owner might even decide to move that truck to another carrier. Just get your feet wet and learn for now.

 

[ATeam]

My wife and I have been following the recent series of forum posts concerning the current state (the perceived state, at least) of the FedEx TVAL/WG/flat rate "situation" with some interest.

I commend your skepticism or caution. Saying "the perceived state, at least" indicates you are taking statements about TVAL with a grain of salt, and that is an excellent and wise approach to Open Forum reading.

By reading my posts, you know what Diane and I have come to believe about TVAL freight and preferential dispatch at FedEx Custom Critical. And you know that we have made a career decision to leave the company because of what we have come to believe.

This is not a trivial matter for us. It is a career decision. It is absolutely essential that we get things right before we make such a decision. It is absolutely essential that our perceptions are accurate. It is absolutely essential that our logic is sound as we reach decisions based on our perceptions.

Accordingly, we too took information with a huge grain of salt as it came our way. I did everything I knew how to do to work with facts, not rumors.

When I saw our revenue decline, I checked with other contractors in similar equipment to see if it was just us or more widespread. It is more widespread.

When I heard from contractors that the company was adding a significant number of company-owned TVAL trailers to the fleet, I did not take it at face value but called people in the company who are in a position to know and confirmed it them.

When I heard that TVAL freight that we are able to haul is being preferentially dispatched to those company-owned trailers while we are being passed over, I did not take it at face value but called people in the company to confirm. In this case, I drilled down deep enough to talk personally with the dispatcher whose has been there a long time but now has the new job of keeping those trailers loaded and running by preferentially dispatching them.

Multiple confirmations about new trailer count, preferential dispatch and the loss of loads we used to haul has come to us from additional contractors since we ferreted out the facts. These reports are unsolicited. Diane and I are not researching this any more since our decision has already been made.

Even more confirmation has come from shippers, again unsolicited. One example is the guy at a loading dock who offered with no prompting from me how unusual it was to see a straight truck for a change since he sees mostly 53' reefer trailers now. This from a shipper that used to be a reliable source of freight for us but no more.

While we are sad that all of this is going on, we are confident that it is factually true and that our decision to leave the company is based on facts that indicate this is our best next move.

Now we have yet to haul our first load of expedite freight, in fact, we've not even made it to orientation yet, but I've made no secret of the fact of our desire to eventually end up in a White Glove truck. One capable of hauling just about any freight that might happen along, including TVAL / temperature controlled. And with us being fully credentialed to do so.

We felt (and still feel), that is a worthy goal, one that would put us in a great position to earn.

(I don't discount that there are other opportunities out there that may be "better", but with our lack of experience, these are limited, at least for the time being.)

We'll be starting out in a fleet-owner truck (as suggested) with us on the 40/60 split, with us getting 40%, and essentially not having any other work related expenses other than occupational insurance and taxes.

You are making a wise move. Getting into a fleet owner's truck like you are and seeking to get as fully trained as you can as soon as you can will help you in two ways. First, you limit your financial risks by not committing to a truck of your own. Second, if you ever leave the company, you will take your training, credentials, freight handling experience and record with you. The sooner you can get into the White Glove arena, the better it will be for you, professionally if not financially.

So now the wheels are turning and several questions come to mind. With the apparent changes that are occurring at FDCC, is our original plan still viable? Is there enough "other" specialty freight available (lift-gate, DOD, Art, White Glove) to make it a priority for us to get into White Glove rather than regular surface? How would our other potential carrier (Panther) stack up against FDCC?

As I said above, the credentials and experience alone make it worth it to get into WG, at least for a little while. These enhance your resume and opportunities for the future.

Diane and I are looking forward, not backward, so I am putting very little thought into what might happen at FedEx Custom Critical in the future. A preliminary theory is that competition for other specialty freight like lift-gate, DOD and art loads will increase within the fleet. With more WG straight trucks hauling less TVAL freight, they will accept more of the other kinds of loads that they might have declined before. It is either that or sit or leave the company. Once contractors make the psychological decision to run cheaper than they used to, they will be snapping up the kinds of loads you mentioned.

With our prospective fleet owner, our take (40% of revenue) would be the same whether in a surface or a WG truck. And, we essentially have no investment tied up in the truck (other than our costs to get started and some personal equipment.) And yes, they have trucks on with Panther, and yes, they are big red Kenworths.

Now I am only asking for your opinions. I don't think anyone can answer with any real certainty. Just too many variables. Maybe the flat rate surface program is something to look at, in our case?

The way to make money in your situation is to run as many miles as you can, without regard to truck costs. Your fleet owner is not ignorant. He will keep his profits in line and guide your load acceptance behavior.

 

[tumbleweeds]

Just a quick note of little value. We started a short time ago with the Fed. We are at the bottom of the Custom Critical food chain. The Fed has been very straight forward with us and has done everything that they said they would do. We are very pleased with them. I don't know how the Tval units will work out but with dry freight, they have kept us busy. I hope you find them as easy to work with as we have. They seem to be a good company. We have found Todd in recruiting to be a straight shooter. Ask him if you have concerns and I think he will be as honest as he can be.

 

[ATeam]

Just a quick note of little value.

Your note is of GREAT value.

FedEx Custom Critical is not going to go away simply because certain contractors are unhappy and/or choosing to leave the company. The FDCC recruiting department is as busy as ever reaching out to new people who will consider the opportunity. For people considering FDCC, it is as important to know the experiences of new people coming in as it is to to know the experiences of those going out.

No newbie should ever feel reluctant to share his or her views or experiences because of one's newbie status. Expediting is a dynamic industry and change is a constant. It is often the case that what was true yesterday is not true today. That fact is sometimes lost on veteran expediters while the newbies see things most clear.

 

[Tennesseahawk]

Problem with your theory is, Ateam, there are a finite supply of veteran expeditors. And when those veterans all take notice of the FedEx "all for me, none for you" policies, FedEx will end up like how JBHunt is to the OTR crowd... a joke. Everyone is talking about FedEx spamming recruiter calls. JBHunt started it in the trucking industry. If the Fed keeps on this quest to be like JB, all FedEx will have left are the green drivers.

 

[ATeam]

Problem with your theory is, Ateam, there are a finite supply of veteran expeditors. And when those veterans all take notice of the FedEx "all for me, none for you" policies, FedEx will end up like how JBHunt is to the OTR crowd... a joke. Everyone is talking about FedEx spamming recruiter calls. JBHunt started it in the trucking industry. If the Fed keeps on this quest to be like JB, all FedEx will have left are the green drivers.

Diane and I started in 2003 as green drivers. We had no service failures in those early months and no freight damage. We drove as many miles and and made as much money in our first month as the grizzled veterans. We did short runs, long runs, New York City runs, inside deliveries, etc. It would have made no difference whatsoever if you had put veterans on the loads we did in our early days. The perfect customer service results would have been the same. We had to look at a map to figure out how to get from New York to Philadelphia (which seems very funny now), but we got there just the same.

Seasoned people like to believe that they cannot be easily replaced. While that view has some merit in some circumstances where experience can make the difference, most of the work expediters do can be done by able-bodied people of average ability. It's not like Marine Corps basic training, flight school or brain surgery. It's picking up, transporting and delivering freight, safely and on time.

The thing with inexperienced expediters is that they become experienced by doing nothing more than their day-to-day work.

A lot of companies believe that there are no driver problems that they cannot recruit their way out of. They seem to do just fine, making money and serving customers year after year. They may become known as a joke in some circles, but while others are laughing, the companies are laughing too...all the way to the bank.

 

[greg334]

Seasoned people like to believe that they cannot be easily replaced. While that view has some merit in some circumstances where experience can make the difference, most of the work expediters do can be done by able-bodied people of average ability. It's not like Marine Corps basic training, flight school or brain surgery. It's picking up, transporting and delivering freight, safely and on time.

Wow Phil seems to have come over to my side of the fence. I don't know whether to be offended or happy but I've said that a few times here and on another site almost verbatim.

 

[Tennesseahawk]

They may become known as a joke in some circles, but while others are laughing, the companies are laughing too...all the way to the bank.

And that's my point. The drivers (o/os) aren't laughing. Yes, you can replace the vets; but at some point, your service is going to take a hit. In the end, it's all about FedHunt's bottom line; and some bean-counter thinks it's a recruiting problem, when it's a policy problem. IMO, that's a bad way to do business.

 

[moose]

And that's my point. The drivers (o/os) aren't laughing. Yes, you can replace the vets; but at some point, your service is going to take a hit. In the end, it's all about FedHunt's bottom line; and some bean-counter thinks it's a recruiting problem, when it's a policy problem. IMO, that's a bad way to do business.

not a bad business at all.
Last I checked, the FedEx is following the ATA agenda to the point.
please name a handful of carriers that promote longevity over a revolving door.
for some rezone recruiting is cost effective.
unfortunately we make it too EZ to start in expedite, which make Expedite carriers follow the 'entry level truck load carriers' business model.
tons of baboons out there, if you make the forest thick enough.