Re: Going Broke

[layoutshooter]

Does it really matter about the FSC, tolls and so on when all that should matter is that all inclusive rate to the truck?

What ever you wish to think is ok by me. It matters to me. I watch what I EARN, you know, keep. Gross is not as important as net. If the "rate" is mainly going in the tanks I am NOT keeping as much.

IF the rate per mile remains static with a rising FSC what the truck is being paid to haul that freight as gone down.

 

[TeamCaffee]

Does it really matter about the FSC, tolls and so on when all that should matter is that all inclusive rate to the truck?

No the bottom line is what does the load pay and what are the miles.

Fuel is included in my expenses for what we need per mile to run.

 

[greg334]

So all things equal, if you are offered a load for $2.34 with a complete breakdown of everything and another offer for $2.50 with no breakdown, you would refuse the $2.50?

Oh Linda you're so sneaky. I see you posted right before me...

 

[layoutshooter]

I don't think many understand what I am getting at. I must not be explaining it well.

 

[TeamCaffee]

Greg I have heard of people doing exactly what you describe. Turn down a load over FCS when the load pays more than enough to pay for fuel.

I find it much easier to update my cost to run per mile as fuel prices change than to break it out.

 

[layoutshooter]

Let's try it this way: The higher the percentage of the total pay of a load is in FSC the lower the profit a truck makes on that load.

I don't turn down loads due to FSC, BUT, without a doubt, the higher the percentage of that pay is in FSC the less we end up with, therefor, we are working at lower rates.

 

[cheri1122]

Let's try it this way: The higher the percentage of the total pay of a load is in FSC the lower the profit a truck makes on that load.

I understood what you mean [outside of politics, you make perfect sense, lol]. When the FSC is the only part of our income that it increasing, we are making less, because the cost of everything [not just fuel] continues going up.

I don't turn down loads due to FSC, BUT, without a doubt, the higher the percentage of that pay is in FSC the less we end up with, therefor, we are working at lower rates.

"Just say no" is too simplistic an answer, because of that little detail called a contract. If low offers are all there are, sooner or later, the answer has to be 'ok. One can switch to a different carrier [which costs money too], in the hopes that the offers will be better. Or one can get their own authority, and flail around in new territory...
So many ways to go broke, so little time, lol.

 

[layoutshooter]

So all things equal, if you are offered a load for $2.34 with a complete breakdown of everything and another offer for $2.50 with no breakdown, you would refuse the $2.50?

Oh Linda you're so sneaky. I see you posted right before me...

You don't pay attention to the pay breakdowns?

 

[dabluzman1]

The only things I need look at are TOTAL PAY and TOTAL MILES
to make my decision. If all miles meets my minimum $$ I accept.
Oh I track the breakdown for giggles, but Run money, FSC and toll
money are all income and end up on the gross income line of your tax form.
100% of your fuel costs end up on a deduction line no matter what the FSC allowance was.
Why complicate the simple.
If DHPL is 50 miles, DHPU is 200 miles and Run milage is 750
what would you need to say yes for 1000 miles?
It is as simple as that.

 

[greg334]

Layout,
NO not really when I make decisions about 80% of my work but like dabluzman, I too track it all to see where I'm going. To me and many others it is the total all inclusive amount that only matters because it all goes into a great big pot (except vans they use a small one) and it all comes out that pot regardless how you try to cut it.

It doesn't matter to me other than maximizing the use that part of my contract for that 100% of the billable amount to the customer. This means that if my reefer is used and the agent uses it as part of an inclusive amount, I have them change it to capture that additional 37% of which I have never had one say no. I don't care what my FSC is, I carry my fuel costs forward anyway based on the projected maximum cost of fuel which I just adjusted my BEP for the lower fuel costs - now it is back to $4.15.

I understand what you are getting at but reality is different for each of us and this goes back to my point that you can't blame the driver or the owner who can take that $1 a mile run but the company for not doing their job to begin with.

 

[dabluzman1]

Layout,
NO not really when I make decisions about 80% of my work but like dabluzman, I too track it all to see where I'm going. To me and many others it is the total all inclusive amount that only matters because it all goes into a great big pot (except vans they use a small one) and it all comes out that pot regardless how you try to cut it.

It doesn't matter to me other than maximizing the use that part of my contract for that 100% of the billable amount to the customer. This means that if my reefer is used and the agent uses it as part of an inclusive amount, I have them change it to capture that additional 37% of which I have never had one say no. I don't care what my FSC is, I carry my fuel costs forward anyway based on the projected maximum cost of fuel which I just adjusted my BEP for the lower fuel costs - now it is back to $4.15.

I understand what you are getting at but reality is different for each of us and this goes back to my point that you can't blame the driver or the owner who can take that $1 a mile run but the company for not doing their job to begin with.

In my 1000 mile example , if it was a reefer load my minimum
per mile would be .35 to .50 / mile more than a dry box offer.
Now that is MINIMUM, reefer loads usually exceed my minimum dry box rate by a much higher rate.

 

[OntarioVanMan]

My point...NOT to throw anyone under a bus...was no one ever said anyone was going broke at Fedex...only things have changed that certain contractors couldn't adjust too....or want to accept...

there is no bus scheduled at this time......

 

[greg334]

My point...NOT to throw anyone under a bus...was no one ever said anyone was going broke at Fedex...only things have changed that certain contractors couldn't adjust too....or want to accept...

there is no bus scheduled at this time......

Ah... Actually a few are/were complaining they were all going broke.

OVM read and critique the threads about the subject of FedEx and the changes - both to the company and to a certain superstar team.

WHICH when you think about it ... WHAT CHANGES?

No one has yet to explain why Phil got all riled up and got the pom poms upset other than what was already common knowledge - they are not offering the high priced loads, flat rate programs were coming and some found out they actually own equipment.

 

[dabluzman1]

My point...NOT to throw anyone under a bus...was no one ever said anyone was going broke at Fedex...only things have changed that certain contractors couldn't adjust too....or want to accept...

there is no bus scheduled at this time......

MEEP MEEP...............................
When we first got into this biz a little over four years ago we heard "things have changed" , "it aint what it was", "are you crazy", WELL, same things are being said today.
CHANGE will cause a lot of people to soil their undies or go hide.
Now the last four years are all we know about the business.
It has changed a whole heck of lot in 48 months.
It has been and still is a very profitable venture.
But, I like the challenge of change. I like the challenge of it.
It doesnt scare or make me uncomfortable.
I am not afraid or unwilling to pull the plug if it becomes unprofitable.

 

[OntarioVanMan]

MEEP MEEP...............................
When we first got into this biz a little over four years ago we heard "things have changed" , "it aint what it was", "are you crazy", WELL, same things are being said today.
CHANGE will cause a lot of people to soil their undies or go hide.
Now the last four years are all we know about the business.
It has changed a whole heck of lot in 48 months.
It has been and still is a very profitable venture.
But, I like the challenge of change. I like the challenge of it.
It doesnt scare or make me uncomfortable.
I am not afraid or unwilling to pull the plug if it becomes unprofitable.

and that is what we, if we want to be successful, have to do...change when change is called for....

 

[leezaback]

I have been Tval-#27, in the beginning the rates were not great long dh avg 600-to 1300 miles,Fedex was trying to capture a market, dh always killed the profit line 4 years later I dropped tval -seemed same trucks were always on tval and the long loads and i was one one of the trucks who went for months with only a few offers-short, and everytime the light turned on-it cost us money to comply,back then the tval customer base were few.we have all the qualifactions . I ran regular reefer and dry, the rates I found were much better than tval-and I made more money. my reefer was 10 years old-we didn;t want the expense to up grade by choice we went back to the beginning a dry box we-don't miss the cattle prod! we do miss the revenue, it was easier to pay the bills having both reefer and dry . we have to work harder to make the money,we are not afraid to work. the rates usually are better than surface, some surface rates are great-I said some. over the years the rates were good and we could show a profit now every month we have to do a life jacket check , we are owner operators-not compenators.

 

[davekc]

I have been Tval-#27, in the beginning the rates were not great long dh avg 600-to 1300 miles,Fedex was trying to capture a market, dh always killed the profit line 4 years later I dropped tval -seemed same trucks were always on tval and the long loads and i was one one of the trucks who went for months with only a few offers-short, and everytime the light turned on-it cost us money to comply,back then the tval customer base were few.we have all the qualifactions . I ran regular reefer and dry, the rates I found were much better than tval-and I made more money. my reefer was 10 years old-we didn;t want the expense to up grade by choice we went back to the beginning a dry box we-don't miss the cattle prod! we do miss the revenue, it was easier to pay the bills having both reefer and dry . we have to work harder to make the money,we are not afraid to work. the rates usually are better than surface, some surface rates are great-I said some. over the years the rates were good and we could show a profit now every month we have to do a life jacket check , we are owner operators-not compenators.

That is probably true. The rates currently are about the same as they were ten years ago. This is even recognized by the industry at large and why (or at least in part) you see them going to flat rate tractors. Look how many dealers stock reefer straight trucks now. Virtually none. That isn't by accident.
Rates have stayed the same but some carriers are paying less to the operator.
The margins just aren't the same as years ago. When talking to some fleet owners, the drivers are making out, but the costs of equipment have the owner barely hanging on. Your post is a testament to that.

As for rates and FSC's, I think there is some differences between a one truck operation verses a fleet truck and the carrier. Regardless of carrier or pay plan, load acceptance may be looked at differently because the money is split differently. FSC may make a difference in those cases.

As for rates, another's trash is another's treasure. I am still baffled that some would consider 1.40 all in a good rate for a exclusive load on a straight. Does seem like a slow hemorrhage.
But, the 1.40 could be a bargain load if it is thrown in with something else.

 

[bobwg]

Just wondering how many of those reefer loads are now going on Sprinters instead of straight trucks at Fedex.

 

[leezaback]

back when, the rate was the rate, now we have a fuel surcharge thrown in, if you take that out , is the rate about the same as years ago ? If you just look at the total miles divided into the pay-the rate is about the same-if you look at the just the run miles and pay , what is the rate compared to years ago.

 

[layoutshooter]

Just wondering how many of those reefer loads are now going on Sprinters instead of straight trucks at Fedex.

Not many. Those "B" reefers cannot handle most of the loads, even the small ones, that we carry.