new reefer business

[tallcal101]

I must take a little exception to your rose tinted glass's analysis of the fuzzy little warm munchkins streaking into the Green office to work so hard for the contractors.I usually don't wish to p** on your parade,but I'm afraid you may have dilluted yourself just a tad bit.The munchkins work for a company that has been screwing contractor/owners here in California for several years.They just got slapped hard,and the courts recognize this company will do what it needs to do,at both employeee and contractors expense,to beef up the bottom line.In my exit conversations this was all but admitted to me by several senior managment personel.I've always maintained that the 1 man 1 truck theroy can work for a good business person(such as yourself)but I think you maybe living in a paralell universe that paints FEDEX with a very wide brush stroke.They don't come to the office to find ways to put more loads on contractors,they come to the office to conspire on how to make money for the FEDEX family of companies,with or without CC,which happens to be a pimple on the backside of this giant.

They have cut back print advertising to nothing(zero budget) for CC,but have increased the budget for LTL/Express in logitics magazine's.I know,I get most of the magazines that they used to advertise CC in.Show me one recent ad in any of the logistics rags promoting FEDEXCC or W/G services in the last 12 months.However,Panther is splashed across most of them in half page ads,as are several other competetors.
FEDEX is promoting FEDEX companies and the freight will go where they decide it will go.
One last thing,FEDEXCC is all but done away with sales people in the field selling just CC.This may or not be a bad thing,as they were not paid very well when they were out here.They were under paid commison sales people(contractors) with no benefits.Most of the sales effort is now done by FEDEX corporate sales people,and they promote who their told to pomote.

 

[ATeam]

The munchkins work for a company that has been screwing contractor/owners here in California for several years.They just got slapped hard,and the courts recognize this company will do what it needs to do,at both employeee and contractors expense,to beef up the bottom line.

Specifics?

 

[tallcal101]

Transport Topics On Line has the whole story.There are several issues with news on this court case,you can scroll through them.

 

[nightcreacher]

each of the companies under the fed ex banner have ther own advertising costs,and custom critical doesnt feel the need to waist their money in the advertising dept,thats why when they run the number 11 car in nascar you never see the custom critical banner.when custom critical was roberts express you never saw any advertising either,we were a secret,and made plenty of money that way.you talk about the panther ads,well they need to advertise to keep up with custom critical.they may have more trucks,but we have a bigger expediting base,you dont see many of our trucks hauling back haul freight,we do expedite from everywhere

 

[arkjarhead]

You bring up a good point TallCal. Anytime I see a FedEx ad on tv they seem to throw in everyone's name except cc. I've seen them talk about Ground,Express, Home Delivery, and Kinkos. Sometimes all in the same commercial. Nothing about CC. I wonder why that is? Maybe it's the same reason I have never seen an expedite commercial on tv. Seems to me like there would be some people out there who could use the service and don't realize it exists. I could be wrong, and most likely I am. It's just seems strange to see FedEx mention every other company in their "portfolio" besides CC.

Nightcreature answered my question as I was typing it.

 

[RichM]

TC is correct in his assessment of the Corporation as a whole entity and not a divison structure. When the orders come from Memphis to fill our pups and not give away revenue to I/C's unless we lose the shipment period they will work to fill the pups. There will always be expedited special requirements but I see this service being reduced and particularly in reefer shipments. I have a relative who gets weekly sales pitches and they are pushing this new reefer container as a cheaper alternate to traditional reefer equipment and single load shipments.

The next 6 months should be interesting for the w/g reefer fleet. I hauled several shipments that were of the dry ice method in a non reefer W/G unit and the revenue was barely above the normal tarriff in spite of the constant monitoring of the temp and having to return the monitoring tapes and equipment. But I also think the T/Val market will continue on in it's present state.

With Fdex stock recently reduced by about 30% in value the powers that run the whole Corporation need to retain as much revenue as possible.

 

[greg334]

OH boy... research?

OK - here goes....

1- FedEx is too big to figure out what they will do or planning on doing. The shift in marketing as mentioned by TC (thanks), the move to reducing rates and other things all indicate that neither Virginia or CC people really know what is coming or they are not talking. The amazing thing is they are following what other companies do when they move to limit future problems in a competitive market.

2- The use of this unit will be limited to things that sit inside of it without a lot of weight, meaning paint drums will not be loaded into them. Why? Because the vacuum insulation panels are too fragile and once they are damaged, the container is ruined. Don't take my word for it, call them. Also I read that the manufacturer may not use batteries but another power source.

3- I noticed something in this thread and I know it is not just me alone who saw it. Do you see it?

4- we are in a down cycle, listening to 'experts' today, FedEx was mentioned. It is really odd to hear about the projections and the adjustments that they think will happen with this company and about my former employer, who is leading some of these changes.

5- yawn, the reefer pallet will not be used for paint, think about it........ ok....... now what do you think why?...........Paint, think paint.......ok, give? The use of the reefer is to keep it warm, not cold. The reefer pallet is great for food products, for some Pharma stuff (not all) and other things like....say..... keeping your margarita's cold but not paint. Paint is put in a reefer truck to keep it warm, yes keep it from freezing. By the way, I don't know if you know that some paints can freeze and they go in trucks and also FedEx has some reefer trailers, I am looking at one right now and seen it for the last three days as I have been here every day to drop.

6- OK, I really felt cheated when I last hauled paint in my reefer truck, with the reefer running. I ended up running it at a deep discounted rate and it was a WG shipment. Exclusive use, check. Reefer, check. Straight through trip, check. Should have made $2.50 a mile for what I went through but didn't. I asked what in the h*** was the reason that this was first a WG load and second was discounted? No answer from CC but I got an answer later and I said why before.

 

[Refer Hauler]

I've hauled these or similiar containers,about the size of an "air can" They have gone inside of my 53 ft reefer; told to run my unit continuous at a preset temp so it does not overwork the dromedary unit.

 

[nightcreacher]

the cit team was doing the dupont and ppg paint loads,when they decided to do away with the portable heaters,it was decided to put the loads on w/g reefers,as a reefer also heats,besides cools,and yes the rate is discounted big time,so this is how w/g got into the paint transportation

 

[jaminjim]

Greg that was some serious double talk, try again w/o leaving the details out.

 

[greg334]

Greg that was some serious double talk, try again w/o leaving the details out.

Ok What details do you want to know?

I thought I was clear, but I may be wrong, seeing I had to wait 20 just to post that because of the connection I had.

 

[juliewray60]

Ok What details do you want to know?

Good grief. Who's gonna argue that battles of wits come best from drivers and not researchers ??

 

[arrbsthw]

Greg,is it this? When the orders come from Memphis to fill our pups and not give away revenue to I/C's unless we lose the shipment period they will work to fill the pups.
I hauled several shipments that were of the dry ice method in a non reefer W/G unit and the revenue was barely above the normal tarriff in spite of the constant monitoring of the temp and having to return the monitoring tapes and equipment.

The fact that Rich M said this...does he work for FedEX? At one time I saw where he
wouldn't say where he was working when someone asked him.. Did I win?

 

[cheri1122]

I am responding to the query about RichM because first, he mentioned in a recent email that he intended to take a 'hiatus' from EO for a bit, and also because I think the reference to his refusing to say where he was working casts an aspersion that he doesn't deserve. If he did say it, no doubt he had good reason, and he certainly made no secret of the fact that he drive for FedEx for many years.

 

[greg334]

Well I won't bore the audience but arrbsthw something like that.

The contractors cost them 20%, believe it or not. They just want to realign their offerings to the customer for the changes in the markets they are in and with that they will try to capture what they feel is lost.

I know many don't care and others think I am full of it, but I don't care, my massive amounts of FedEx stock is not doing bad enough to sell it, I even bought more Pfizer - not a bad time for PFE short term speculation.

 

[davekc]

I'm with Cherri .........I think with all the years Rich has with the Fed, he has a pretty good track of what goes on there.
Secondly, not quite sure who the "researchers" are, but all of the posts are from drivers or fleet owners?

And Greg...........thumbs up on the Phizer. I helped myself as well.
Got a good review from Fox business and Kramers Mad money.

 

[jaminjim]

Rich did drive for the X for many years, until health issues changed his outlook, he then mentioned some months back that he was working on a project, but was not prepared to make the nature of it public.

 

[greg334]

And Greg...........thumbs up on the Phizer. I helped myself as well.
Got a good review from Fox business and Kramers Mad money.

Well Dave, my info comes from a slightly different source but it is just as good Kramer.

I think that they will be doing good this year, even though Norvasc is gone, they will be losing Camptosar and Zyrtec, and they took their insulin inhaler off the market and so on. They are shoring up Lipitor by having Jarvik hit the road (he was on GMA a few weeks ago and I almost peed my pants laughing) and they are realigning the US operations by closing places, it is sad to see Ann Arbor go.

I am looking for short term returns, not long term but they always gave a good return in the long term, it may go back up to the $38 as long as they don't go on another buying spree.

I think Kindler is doing a better job than McKinnell. McKinnell was not anything like Steere which ended up having him go into a $78M forced retirement. I am glad that Katen didn't become the CEO - it would have been the same old same old.

 

[juliewray60]

my massive amounts of FedEx stock

OK,you said it.

Now add the $800 suit, private airplane travel, and as reported by you in 100's of post: experience in all matters of business and economics. Mananaged/owned/responsibility for numerous companies and vast number of employees.

Why would someone with that kind of background and implied wealth be spending relentless time on a trucking forum ? It would seem that an individual with your impressive resume would be traveling the world, managing various world-wide vacation properties, maintaining a collectable car collection. It's just hard to imagine someone with your kind of money investing this kind of time here------of all places. I just don't get it.

 

[TeamCaffee]

What I find interesting is that posters who do not drive for FedEx Custom Critical and some of them for many years are the ones posted that the end of FedEx Custom Critical White Glove is coming to an end. I wonder are they all trying to save us FedEx Custom Critical O/O or trying to validate they made the right decision to move? I still contend we make a very good living at FedEx Custom Critical and when you stop by the main office in Green, Oh I sure do not see anyone cleaning out their desk in particular the White Glove division.

My wish is once a person has left a company for good or bad reasons post what you want and then move on, stick to the company you now drive for.