Less Than a Buck to laredo

highway star

Veteran Expediter
Owner/Operator
Now where is that statement to BAN THE VAN now, Im not getting ur loads ur turnning down, but I can make good money on 95 cents a mile,, will take them all day long, ps,,do it all the time and I'm a happy camper, yep ban the van, and u all turn down loads, give me a break. :rolleyes:

LOL.. Wow, let's just compare pumpkin seeds to West African Albino Crocodiles...
 

davekc

Senior Moderator
Staff member
Fleet Owner
If this dispatch type system had no other motivation other than speed as some would suggest, would it not make more sense to have the driver indicate the rate in which he will run so they are not constantly bothered by foolish load offers?
How does one sleep with that going on?
My guess is that won't happen.
My only interest in this is not seeing this goofy system adopted by our carrier. I think those chances are good because a company on a mileage pay system stands to gain nothing by doing it.
 

bubblehead

Veteran Expediter
... By a hungry unit or a forced dispatched fleet owner truck.
I think you pretty much got that one right except for the second part of the deal. As a former driver of a "forced dispatch fleet owner" told me, they were told to accept the load and it would be adjusted to a pre-agreed rate (flat rate) so if you got the load offer at .94 and one of these "forced dispatch" drivers sitting next to you at the truck stop drove off to pick up that load, they got it adjusted to (at that time the rate was) 1.20. If you accepted the load, you got it at the .94. It served two purposes. 1. got the load covered at the flat rate... 2. demoralizes the other drivers by making them think someone took it at .94. The driver that told me about this left after their percentage was re-contracted downward. Don't know if this was just a trial with flat rates or if its still going on. But it would be in the best interest for the carrier (not us) to force us into accepting flat rates before the market gets strong again. And if it downturns, they just simply write a new contract...sorta "take it or go somewhere else"
 

greg334

Veteran Expediter
Dave what in the world are you talking about? I do not know anything about bid wars? Pitting drivers against drivers?

The system is no different then it was before. More drivers see the load at the same time but the dwell time is the main issue on who gets the load. We also can refuse 20 loads in a day and we are still in the same order as we were when the first load offer came out.

Huh?

OK I see.... I understand why you can say that.


What's the use of the exclusive contract if you are going to be treated as a day laborer and have to jump at a load?

Who cares about your "order" you end up at, when that is negated by broadcasting loads and having a bidding war within the fleet.

I see the company's side but I also know that it puts pressure on the drivers who are not the smartest people in the fleet.

Loads get covered to a point but still CC has poor dispatching people when they have a source of work that is second to none.
 

nightcreacher

Veteran Expediter
As everyone should know by now,I'm no longer with FDCC,and really have no reason to stick up for their dispatch system.Before this system,each contractor had 10 minuets to decide if they wanted the load or not.This could use up enough time,that a customer could go to another carrier,by the time FDCC would get a commitment to a load.This new system,as much as it is being talked about,is not about getting a cheaper truck in the company.When ever you turn a load down,they want you to give a reason,and in that reason if you need more money,than you can list that too.The first person that would have received the load still gets the load,and yes,in any system,there can be a problem.Trucks from other than the express center the load is coming out of, could be dispatched,if they can make the pick up on time,and have more dwell time than the closest truck.As was stated earlier,you could turn down as many load as you want in a day,and still stay in the same dispatch order,this doesn't happen in most of the other companies.
 

FREE TO FAIL

Seasoned Expediter
Boy I glad I left the fed, I always thought that it was an organization that doesn't really value its o/o.

I think the original poster has it right why raise the rates when you can throw a stale biscuit out to twenty starving dogs and see what happens. The question is why? Is it because the fed is double brokering the loads? Or is it an attempt to create market share on the backs of its o/o? If its in-house double brokering, action needs to be taken.

I think your driver counsel should petition to the review the books and see whats happening, anyone actually see a customer freight bill lately?

I feel sorry for the o/o that have nice trucks but big payments you simply cannot make it on those rates! Case it point look at all the expensive TVAL trucks for sale here on this site.

By the way are they still talking about acceptance levels as they bomb you with cheap offers?

Lastly, While I no longer work for them, If in fact the rates are a true representation of what the company is actually billing then you o/o are depressing the freight rates and thats a concern for me. I want everyone to make money, The capacity in the industry has shrunk to the point their is really no reason for this practice.

STOP TAKING CHEAP FREIGHT!
 

layoutshooter

Veteran Expediter
Retired Expediter
We are leased with FDCC. We always refuse those "stupid" loads. If a load does not benefit us we don't take it.
We often put a rate that we would accept that load at. If they don't meet or exceed that rate/price, we don't take it. We no longer pay any attention to acceptance rates. If they are going to offer those silly rates, it no longer matters to us. If they get rid of us due to that, there are always other carriers.
 

Number28

Seasoned Expediter
As busy as it has been of late, it sure sounds like the Fed is trying to shortchange their contracters. Lots of miles, good areas and bad 1.15-1.30 pm plus fuel of 20-35 cts per mile. If you have a straight and not getting decent rates now, you might need to make a move, or continue being used.
 

layoutshooter

Veteran Expediter
Retired Expediter
As busy as it has been of late, it sure sounds like the Fed is trying to shortchange their contracters. Lots of miles, good areas and bad 1.15-1.30 pm plus fuel of 20-35 cts per mile. If you have a straight and not getting decent rates now, you might need to make a move, or continue being used.

I do not believe that it is all that simple. Our rates are up for the year. Both loaded and all miles. It is all in your control. It is up to you to control your business. If FDCC does not meet your needs, move on. If FDCC does not accept your needs, they will tell you to move on. No matter what, it is 100% YOUR choice.
 

davekc

Senior Moderator
Staff member
Fleet Owner
I do not believe that it is all that simple. Our rates are up for the year. Both loaded and all miles. It is all in your control. It is up to you to control your business. If FDCC does not meet your needs, move on. If FDCC does not accept your needs, they will tell you to move on. No matter what, it is 100% YOUR choice.


That makes total sense. Now the question becomes, are they sending under a buck a mile loads just to certain trucks? In this case, 14 to be exact. Don't know as I am not there. But IF they are, and send those type of loads out, and then as suggested, you must tell them the rate in which you will do it............is that a time saver verses just calling you directly?
Sorry, not seeing it. I still see this as a price driven entity for the benefit of the carrier. Pitting driver against each other is what I see. If as Steve said , he gives them a price in which he will do it......well there is your answer plain and simple.
The disappointing part is that this carrier is directly responsible for driving down rates for ALL carriers IF (and I said IF) they are engaging in this practice.
And no.........don't try to convince me that they have a customer on hold to see if a driver will run a load at a loss for under a dollar a mile (as posted) to make that customer feel special.
 
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OntarioVanMan

Retired Expediter
Owner/Operator
Well end of the month is coming up...truck payments will be due...suppose the acceptance of them cheap loads will be higher...guess that is why some carriers are adament about the 5yr rule....so people will be in debt and take these loads?
 

greg334

Veteran Expediter
And no.........don't try to convince me that they have a customer on hold to see if a driver will run a load at a loss for under a dollar a mile (as posted) to make that customer feel special.

Dave you hit it right on the head, you know they don't. No one has yet explained to the drivers how the orders are processed or how the intake people determine capacity. AND no one will ever let this secret out.

Some of the work comes from Freight or Supply chain and they set the prices as an interdepartmental rate. Sitting there watching these people in action it seems they have a lot of time to cover a load. Most of the "shopping" already took place before the customer called and they wouldn't be calling FedEx for a cheap rate and there isn't much negotiations going on.

The dispatch system is an ingenious move on their part, think about it - it sets in motion the mindset that the contractor has to respond.
 

MissKat

Expert Expediter
Hi all. We are a CR unit in Gary/Elk Grove this weekend and no one is kidding about the offers/rates. Only one load we saw paid 1.14 to CA. The rest were 1.00 or less. Even temp controlled were extremely low. I was told by another owner that you could not put a price you would accept the assignment in the refuse area of the response - that the contract says you have to wait for them to ask you what you would do the load for. And then the calls come after you decline the loads to make you feel somewhat guilty that they can't get the load covered. We told them how much it would cost per mile for us to move the truck. We did locals all week in one midWest state and then to MI/IND/Il. We are waiting for a decent load for decent pay. So far it has been 48 hrs...
 

BigRed32771

Expert Expediter
Hi all. We are a CR unit in Gary/Elk Grove this weekend and no one is kidding about the offers/rates. Only one load we saw paid 1.14 to CA. The rest were 1.00 or less. Even temp controlled were extremely low. I was told by another owner that you could not put a price you would accept the assignment in the refuse area of the response - that the contract says you have to wait for them to ask you what you would do the load for. And then the calls come after you decline the loads to make you feel somewhat guilty that they can't get the load covered. We told them how much it would cost per mile for us to move the truck. We did locals all week in one midWest state and then to MI/IND/Il. We are waiting for a decent load for decent pay. So far it has been 48 hrs...

I wonder if the number of trucks in the area that can take a load affects the offered price.

I was told by someone once that one of the many factors that FDCC keeps track of is what price your truck normally accepts. This would make it possible for them to determine an offer price based on the lowest average accepted price by an available truck and then offer it to all availables at that price with the expectation that at least one would accept it at that level. It would also imply that every time you accept a "low price" you pull your own average accepted price down and influence the overall price spiral downward.

Last night a friend mentioned that she had received notice of a 4 to 6% price increase on material she buys for another business due to "increasing freight costs." I wouldn't mind seeing an actual increase in the rates I'm being offered; all I've seen for months is slowly declining prices.
 

OntarioVanMan

Retired Expediter
Owner/Operator
If you read the business news and keep your ear to our business you'd know there is an upward motion to the rates carriers charge...what some drivers are being offered no matter the carrier are off the chart low...
 

layoutshooter

Veteran Expediter
Retired Expediter
As stated before, we turn down those "silly" loads. If a load is close to paying enough we will put the price that we would run that load for in the "reason" section when we decline that load. Twice last week we got loads for the price we said we could run that load for.
 

OntarioVanMan

Retired Expediter
Owner/Operator
If speed in dealing with load distribution was the real issue..why not just offer a decent rate to begin with, instead of starting low and end up at a higher rate anyhow....why the games??

For a company so worried about imagine and perception, they don't seem so concerned what their contractors think...
 
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