New FedEx Van Rate

tyoung

Expert Expediter
so has anyone got the wonderful phone call from safety about the new contract for .85 cpm for ALL miles? does this mean no more air expedite loads? and no more discount loads? the way i see it thats about a 40% pay cut...
 
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TeamCaffee

Administrator
Staff member
Owner/Operator
Re: new Fedex CC rate...

Why are you asking the people in the forum and not safety when they called? This would have sure have been easier to discuss with other drivers in the FedEx Forum.
 

TeamCaffee

Administrator
Staff member
Owner/Operator
Re: new Fedex CC rate...

I have been doing a little checking on this situation and so far have found out a little about this situation.

This is for Vans ONLY!!!

The .85 for all authorized loaded miles plus you will still get FSC and toll assistance.

This also does not go into affect till January 12th.
 
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backroads

Seasoned Expediter
so has anyone got the wonderful phone call from safety about the new contract for .85 cpm for ALL miles? does this mean no more air expedite loads? and no more discount loads? the way i see it thats about a 40% pay cut...
I got the call earlier. It seems to me we will be working harder now for less reward. I wonder how many O/O's they will lose over this. I have heard from other O/O's that the "B" units have gotten raw deals in the past, whereas the other units tend to get better deals.
 

backroads

Seasoned Expediter
Re: new Fedex CC rate...

It is a little upsetting right now. I looked at my average per loaded mile between 11-2007 and 11-2008 and it was $1.47. This new contract will bring my average down quite a bit.
 

Dreamer

Administrator Emeritus
Charter Member
I'm withholding judgement right now, til I see if it really picks our business up. Sure I like the higher pay, but what good is it if we've priced ourselves out of business.

Kathy told me our deadhead rate will go up to .15, we still get tolls assistance, etc... but the new rate of .85 is the run mile rate, and we now have minimum pay of $85.00.

Yes it's less.. but... with as many vans as we have, maybe it will get us more competitive, and gain in the long run, time will tell.

I'm very glad tho that my van is paid off!

The one's I can see this really hurting are the 'out and back' guys.. it amazes me how many I meet in vans who drive home after each run no matter how far.

We'll see what happens.


Dale
 

tyoung

Expert Expediter
ok. now that i've relaxed a little. i called back and ask a few questions...the first one that troubles me is the air expedite loads. now we all know how much we like these loads...lol. but that will change to a flat rate of 85.00. i'm not really sure that they will get them covered for that,but time will tell. the other issue i have is that we still won't get the FULL fuel surcharge that they charge the customer. thanks for the responses and it will be very interesting to see if they will actually get that many more loads for us??
 

Jack_Berry

Moderator Emeritus
i hate to say it but at .85 AND and fsc you will still be making more money than many van o/o. just call around and ask if you need convincing.
 

backroads

Seasoned Expediter
When I signed on with FCC in April of '07, I asked the instructor if there was any negotiating for better pay for the load offers. The instructor told me there wasn't any, that I would just get the 57.5% plus fuel surcharge. I was a little relieved by that because I had been signed on with Panther before and there was all sorts of negotiating, favoritism, etc. going on and I didn't have a clue how to negotiate any rates. But I soon learned that negotiating was a big part of the game here at FCC also, and after a while I learned how to play the game pretty well. So I have gotten used to being paid very well for the work I have done.

Now that negotiating is going to be non-existent, for real, it will take some getting used to but I guess sooner or later I can go back to my old feeling of being relieved by not having to negotiate rates.
 

JoeyandJudy

Expert Expediter
I look at the runs I've had in the last 30 days. My gross pay was approx 3300. Under this new system pay would be approx 1900. That's about a 42 percent loss in pay under new pay system if there are no negotiations. Looks like we will have to work twice at much for the same pay.

Joey
FedEx CC
GMC 3500 Cargo Van
 
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nightcreacher

Veteran Expediter
From what I heard,it was .85 plus fsc for all authorized miles,thats loaded and empty,how many vans actually average .85 for all miles plus the surcharge?
 

D Team Brothers

Expert Expediter
A thread about the new BR unit was started, but it has gone to issues about the new van contracts. I thought I'd try to direct it to this thread where it belongs, not necessarily in the general forum.
Every FECC unit is an INDEPENDENT operator, and as such we all have the “CHOICE”. We can accept the new contract, not accept the new contract, or find a new company that fits “OUR” choice. When FECC decided to change everyone’s contract and only give a % of the FSC – some INDEPENDENT contractors did not accept the new contract and still get full FSC pass-through? Others went with other companies, but most of us decided to accept the new contract and are still living with it. CHOICE! If anyone is unhappy with the new van contract, make a decision and move on. I'm by no means being cold or harsh in my reply, this is a business and decisions have to be made based on our bottom line.

JMO Jack
 

TeamCaffee

Administrator
Staff member
Owner/Operator
Steve,

It is .85 for the run miles and then the dh was raised to .15 after the first fifty miles for DHPL and DHPU.
 

nightcreacher

Veteran Expediter
In 1984 at the back haul rate of 46%,van loads were less than 75cpm,and I dont think they got any dead head pay.The out bound rate at 62% was 99cpm.Pay scale has changed,more companies are expediting.I assume,that FDCC figured if they just lowered the customer rates,they wouldnt get any owners to take the loads,not sure what this will do.
 

LDB

Veteran Expediter
Retired Expediter
My C truck won't be getting that rate unless it's a case of going just about where I must go for whatever reason. That will be relocate pay or worse Leo out of pocket pay. Otherwise I won't be taking van loads.
 

Driver2

Seasoned Expediter
I assume,that FDCC figured if they just lowered the customer rates,they wouldnt get any owners to take the loads,not sure what this will do.
I think your're right, they won't get any of the CURRENT drivers to accept the loads but apparently they think we're expendable. I asked my CC what would happen if I didn't sign the contract and she said they will take that to understand that I want to no longer drive with them. So as soon as one of us is terminated there is probably another one waiting to come in the door. From what I understand at the new rate of .85 c/m we would still be more attractive to more than most of the van expeditor co. out there. Is panther still getting .77? I wonder if they get more fuel surcharge than us. IMO it will now be worth it to drive a D unit even if solo.
What do you guys think?
 

TeamCaffee

Administrator
Staff member
Owner/Operator
I believe there are many vans that will run for the new van rate and make a profit. We are all independent business owners and each of has a different break even line.

What you are suggesting is a strike and while you think it sounds good it is not going to happen. You are being given plenty of time to go through your finances and also past loads and see exactly what the pay will be under the new lease. If that will not be enough income for you then find a company where you will make the money you need. I do not think a flux of solo D trucks or C trucks will be exactly what you are looking for.

The fsc for this week for a van is 10.7 cents with an average mpg of 15. That mpg is pretty low from what I know of the gas vans mpg and of the few diesel vans I know of. If your van cannot get a lot more than 15 mpg I would start there on trying to lower my operating costs. All of us can trim our costs in hard times. You have time to find ways of cutting your costs use it wisely.

From what I have been seeing the load count for vans has been way down and FCC is trying to be pro active on getting the load count up and the vans wheels to turning again. It seems as if you can have one load a week for 1.20 a mile or you can have several a week for .85 a mile. With very many .85 a mile loads in a week you income will go up and your fixed costs will go down.

Take a hard look at this year and how long can you continue the way you have been running or how long would FCC continue trying to support vans? The vans are needed but they need to be profitable for both business partners.
 

nightcreacher

Veteran Expediter
looks to me,the vans that deliver and go home are the ones that will be hurting from the new pay plan.Those that stay out and loaded shouldnt notice much diffrence,but you wont know til it happens.good luck
 

aileron

Expert Expediter
I guess we will wait and see what happens. Maybe we will get more of our B loads given to us now instead of C and D units, maybe FedEx will be more competitive and get more loads for us, and then even if we get paid less, we will be able to work more and make more money. But what will happen with the short loads? I know they have lots of them less than 150 miles out of different airports. Will it be worth it to lose your day and end up in a dead express center or deadhead back where you started and be 6th in line for $100? I bet that lots and lots of bargaining will happen on these loads. Have you ever heard a dispatcher asking 'What will it take for you to help us with this load?'
 
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