Less Than a Buck to laredo

[layoutshooter]

I am not aware of how and why FDCC sets a rate for a load. Competition comes into play. So does their profit margins. It really does not matter that much to me. I know what I need to move a load and will not move that load if I am not payed what I need. If, because of that, the load does not move, so be it.

 

[moose]

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...

Absolutely ,we see it industry(trucking) wide .if a truck gets a flat rate - they might miss the boat .this is expected to last through third and 4th quarter ,and smart Expediters will stay out till the first of the year.
we also see that carriers that where the last to lower their rates 2 years ago ,are the last to raise the rates back up ,as they need to build back the cash reserve and credit line.

 

[jjoerger]

We see a lot of those offers too. But we do not take them.
I thought that they were getting those off the bid boards to try and offer more freight to keep the trucks moving.
We did take a load to Florida once at 88 cents all miles but that was just to get home. It delivered within 100 miles and we were just getting ready to go OOS and deadhead. Making something was better than losing money on fuel.
I never heard of a forced dispatch fleet owner at FedEx CC.
Is anyone on here one?
Does anybody know one?
It seems they would be pushing the employee vs. contractor line by having forced dispatch.

 

[nightcreacher]

Shooter said it best,you can turn down as many as you wish.For those that feel the system is screwing you,just go in the office,ask to be taken into dispatch,and see how the system really works.There is a set formula on how they figure the non discount rates,then certain customers get discounts,depending how much they use the FED.If you actually feel,they are playing one contractor against another,just call you CC and she will show you how wrong you are.The FED may have their problems,but they will show you whats up,all you have to do is ask.I gave 25 years of my life to that company,One thing that they never did,was cause me to loose money in my business.Where I am right now,for me,is a better system.There are too many non Custom Critical people trying to help out here,unless your really involved,you just going on hear say.

 

[LDB]

I would strongly suggest that all FX contractors arrange to sit in at dispatch when you are near Green. It is a very enlightening experience. Your opinions on how they are sitting there screwing everyone will change drastically once you see how things work and how they are too busy to have time for shenanigans. I also suggest taking anything offered by non FX folks with a good size grain of salt. That's not to say there aren't smart folks around here but if you aren't a part of a system you aren't in a position to fully discuss the system.

 

[davekc]

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 guess this is a confirmation of what the original poster said.
Kind of surprising considering you are talking the Chicago area. Since I am not at the Fed, their process only has a interest in that I wouldn't want it based on the provided information from their drivers. Don't need to be at the carrier to make that assessment when their own drivers are providing the information right here.
That aside, I would have a concern if they are engaging in heavy rate reductions. They are a sizable company and that at some point might effect everyone.

 

[greg334]

Leo, don't sell what I'm saying as something of a bit of conjecture.

Sometimes it's too funny, getting those stringers flying everywhere like your in a plastic fog having to walk through it to find that it was only done to poo poo what others already know.

 

[layoutshooter]

I would have to look at the load to determine why it comes out low. Often it is because of very long dead heads to the pick up. That will often bring down the per mile rate. We see that often. It makes things look bad when they shoot these loads out to trucks that are long distances away. Now, if you were to take the per mile rate for the loaded miles and pay that rate to cover the dead head miles the rates would look fine.

 

[nightcreacher]

Dave,some of these people putting up numbers,make things seem strange.I know my tractor rates were better than the straights,and I know there were times I was given load offers that were off the FED broker board,but unless the posters are going to put down the actual pay for loaded miles,what they are posting in pay,my be as Layoutshooter said,just extremely long dead head.

 

[davekc]

Dave,some of these people putting up numbers,make things seem strange.I know my tractor rates were better than the straights,and I know there were times I was given load offers that were off the FED broker board,but unless the posters are going to put down the actual pay for loaded miles,what they are posting in pay,my be as Layoutshooter said,just extremely long dead head.

I would agree with that. Not sure in this instance if they send out the 14 loads under a buck a mile as posted and they are in Chicago, it would seem odd they all would have huge DH on them. I could be wrong.

 

[layoutshooter]

I would agree with that. Not sure in this instance if they send out the 14 loads under a buck a mile as posted and they are in Chicago, it would seem odd they all would have huge DH on them. I could be wrong.

Those really low paying loads are often van loads. They are seldom White Glove. They can be surface loads with some dead head too. We have been seeing a lot of runs offered with extreme dead heads as well. Far more than in the past. By extreme dead heads I am talking about 6-800 miles. We have taken some of these, money is money, if the pay is right, we take it.

 

[davekc]

Since I am not there, I can't comment on the individual stuff unless something specific is posted but regardless as to what types of loads they are would it seem odd to be in a WG truck and be waiting 48 hours for a load in Chicago. Even more so at the end of the week. I am guessing they were available through that priod if they turned down that many loads and are still waiting? Just going by what was posted. Maybe I am missing something?

 

[layoutshooter]

Since I am not there, I can't comment on the individual stuff unless something specific is posted but regardless as to what types of loads they are would it seem odd to be in a WG truck and be waiting 48 hours for a load. Even more so at the end of the week. I am guessing they were available through that priod if they turned down that many loads and are still waiting? Just going by what was posted. Maybe I am missing something?

I don't know what other trucks are seeing but our truck does LESS business at the end of the week, not more. It is common to get a Monday load on Friday and even sometimes on Wed or Thursday. We have not waited 48 hours this year during the week. We have if you took a weekend into the mix. I don't know what this truck is looking at either. I am just letting you know what we are seeing.

 

[nightcreacher]

Dave,in all the years I was there,thursday and friday were the busy days of the week.I would say what your missing ,is the poster isn't putting into account the dead head to pick up.I know there some loads with the discount,that would be hard to run,but a H/W team in a straight truck,could still make a profit,as long as they didn't have to give away the farm in dead head miles

 

[greg334]

I think Steve and Joe are missing an important point - this is a company that has enough work to keep everyone moving almost every day and at a good rate - $1.40 a mile all inclusive for every shipment. Whether or not it is a "critical" shipment that has to be there yesterday or some pieces of freight that the freight guys missed picking up or that Air Expedite freight that can't go on a plane due to a lack of support at either end to get it to a customer does not matter, there is a LOT of work to be had. Each of those examples I used I have hauled for them.

Van freight or not, it doesn't seem to matter, they choose and select where it ends up not by what it always is but by a set process that is pretty complex and interesting in itself. This usually determines some of the rates used, some of the "special customer's" get some volume discounts but overall it isn't like CC has a hodge podge of rates to choose from and are on the front line but are very clear that what they have with services and cost are to the customer. Sit with a customer who does a lot of freight and see what they get in rates.

Think about it this way. You are the shipper at X company, and you need to ship your packaged to L.A. from your place in Maine. You weigh the package, you print the sticker and then you put it aside for FedEx to pick it up. FedEx comes and picks it up, they scan it and throw it on the truck. At the end of the month, you get a bill in the mail for what you shipped and it is non-negotiable because the rates are already set. This also happens in other divisions, like supply chain and freight - set costs are used with some latitude within their margin to allow them to be competitive in order to be the go to company.

FedEx has been an all-in-one-stop shop for a while, CC does something like .1% of the work (I am being sarcastic but it is low) so if moving freight matters, they can supply everyone and not hurt their bottom line in the long run.

 

[guido4475]

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?

That is exactly the truth.Amen brother.

 

[nightcreacher]

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?

OVM,your scenario is way off base.You think everyone's truck payment is end of month?The reason for 5 year rule is not about debt.Once your on,there isn't an age limit,but if your having truck problems,and your truck is older than the 5,you may be asked to trade it in

 

[OntarioVanMan]

OVM,your scenario is way off base.You think everyone's truck payment is end of month?The reason for 5 year rule is not about debt.Once your on,there isn't an age limit,but if your having truck problems,and your truck is older than the 5,you may be asked to trade it in

Steve...I maybe off somewhat but an indebted driver works better then one that does not have that payment looming..and it reads good...

 

[Bruno]

The loads that may be offered may be booked threw the other FEDEX partners that way they make money two ways. They may bill the customer from FedEx Supply Chain at $3.50 a mile plus FSC, then turn around and give it to Custom Critical for $1.65 per mile and the O/O gets 60% of that. Which comes out to be .99 cent a mile. So Fedex in whole makes $2.51 off the load plus a percentage of the FSC.

 

[greg334]

But Dave ...

that's not true, it doesn't happen ... never does ...

Let's see ...

An air cargo load from Groton to Carson City.

The charges to the customer was not discounted nor was it negotiated but FedEx stated the rate and that was it. The customer accepted it and FedEx had Freight pick it up with their normal run, then it was 'transported' by third party from the Freight docks to one of the New York airport and then off to the wild blue sky for a cross country trip.

It was routed to LAX because it was faster than rerouting it through Memphis and then Reno.

From LA it goes by CC truck to Carson City - 520 loaded miles.

The air cargo people would have used Freight out of policy but there wasn't the capacity available going to Carson City within the needed delivery time so it was handed off to CC.

CC took it at the rate of $2.67 plus a fixed FSC which comes to $1.65 a mile plus FSC to the truck. The gross is $1388.40 which works out to $860.80 plus $129.60 FSC or a total $990.40 to the truck.

The customer got charged $6500 including FSC - total $7100 - for the entire shipment. At this point CC's customer is internal, the internal customer pays the invoice from CC and charges their customer. Everyone is happy and there is no plastic stringers flying around.

Now this is not to bash FedEx but to illustrate how it works.

By the way this is an actual load with actual amounts.