Reefer Relocation Charge

[Streakn1]

So how does it feel for all of you high dollar reefer units (like myself) to be informed by your carrier that they will no longer be paying the truck reefer relocation? We got our phone call today giving us the good news! Instead you just get the regular deadhead rate as I understand it.

For those of you that don't know what I'm talking about, we used to get paid either deadhead or reefer relocation charged to the customer, which ever amount was greater.

 

[greg334]

Now you know I am more confused, they been paying to relocate Reefer units?

 

[Streakn1]

Ever since we've been with them they did, but they won't be anymore! Can we say "lets be more competetive" and give the customer a break. Surely the contractor's going to benefit from this change and see more money, right!

 

[tec1959]

When i was in a DR and ER unit we never where paid for reefer relocation.But that was from 1991-2001 i guess things had changed...

 

[davekc]

Maybe Phil has a story to explain it?

 

[CharlesD]

I always thought you got in trouble if you got caught with a reefer in a commercial vehicle, and now I'm hearing that people have been getting paid to relocate them. I'm confused.

 

[greg334]

OH...... I thought about this last night when I was getting ready for bed and I remember that I would complain about DH'ing to a location like Moab from Denver to make a pickup that delivers to SF without any compensation more than the small amount of DH pay. They would charge the customer a relocation fee to offset my cost. It wasn't just reefer trucks, I know someone with a dry truck that got this too.

So they stopped doing that, giving the customer a break/being more competitive - give me a break. Must be all the money is going to those WG straight trucks or they are being cheap.

 

[TeamCaffee]

The pay will all show up on your load offer or load oppurtunity if the load does not pay enough do not accept it.

 

[ATeam]

TeamCaffee has it right. If the load pays enough money, accept it. Otherwise, don't.

With or without reefer relocation pay, reroute pay, fuel surcharge, labor pay, deadhead pay, liftgate pay and any other pay, it has never mattered to us what they call it. All that matters is how much the total pay is for the load.

I was not aware that reefer relocation pay has been ended. Nothing official has been stated and no one at FedEx has ever called me personally and individually to inform me of a pay change. So, either I am totally in the dark because I lack the inisde contacts others may have, or I did not get the memo, or relocation pay continues.

I have no idea. And again, I do not care. We take the loads that pay enough to haul them and decline those that don't.

We are not in a mood to worry about much of anything today. This morning, we paid off the truck. It was purchased in June, 2006, with a healthy down payment that we saved up while driving fleet owner trucks, and paid for 23 months later.

We didn't do that by fretting about the various changes we have seen in our carrier's compensation arrangements, or by making issues of things that did not matter.

Again, it does not matter what they call or do not call the pay. Pay is pay, and as long is it is there in sufficient amounts, we will haul the freight. For the nearly five years we have been doing this, the pay has been and continues to be there in sufficient amounts.

If you want to worry about something, let's worry about fuel and the sea-change effects rising fuel prices are having on shippers and American life. When we entered the business, fuel was selling at $1.25 a gallon. Today, we paid $4.79 a gallon in Maine because we did not want to pay the $5.05 a gallon it was selling for in Albany, NY. That's right, $5.05 a gallon! In less than five short years, we have seen fuel quadruple in price ($1.25 x 4 = $5.00).

Are there challenges in expediting? Indeed their are. Can they be overcome? Yes they can.

 

[iceroadtrucker]

Whats the difference U guys U said they are changing the rules all the time. U know Panther has a TVAL Program. So does Prime. Relocations going away well soon it will be like Prime and there special fleet. those guys get paid better by the mile then most but they are taken the Temps Specilized away and doing it more cost effective . They pay their dirvers more but charge the Customer less. Somthing to think about. like I said before on here Coperate America Ran out the Farmer now its taking over the Trucking Industry . Fuel and Freight going to force the OOPS Out. This isnt good at all. So whats worse a few rules or loose a way of life as an Independent Contractor or OOP. Its not right ya know. Seriously if we all banded together maybe somthing could be done. Im trying to be positive vice negitive. Everyone here is I think is a Contractor and or an OOP so maybe we should get rid of our petty differences and stand up for what we know and believe to be right. We dont need a Cooperate Trucking which all the rules are dictated by the Govt. Trucking is one of the last of the Self Employed Jobs that left. At one time a man could go and make a living in it. Just like at one time the Small time farmer could make a liven but that all but gone. there are a few farms left that are not cooperate but most of them are either set as govt ground which pays the taxes or they are being planted by Custom Farming and spliting the Profits but not farming the land themselves. Now as its seems its all hardships and the little guy just cant go it alone, as big Companies and the Govt is slowly choking the OOPS Individuals out.

 

[arrbsthw]

ATeam said : We are not in a mood to worry about much of anything today. This morning, we paid off the truck. It was purchased in June, 2006, with a healthy down payment that we saved up while driving fleet owner trucks, and paid for 23 months later.

Congratulations Ateam.. that's quite an accomplishment..

 

[Jefferson3000]

They probably have more reefers than freight at the moment and so they figure they can save a little. Don't worry. When they get into a pickle and you're the only one within distance, you'll get what you want.

 

[ATeam]

Congratulations Ateam.. that's quite an accomplishment..

Thank you, aarbsthw. It was an anti-climatic event. While it is nice to own the truck outright and have no truck payments to make, we feel no less focused than before.

The plan is to run this truck for ten years. With two years behind us and eight to go, and adjusting for inflation, we estimate it will cost $400,000 to replace this truck in 2016. That means banking a chunk of money each month to achieve that goal while continuing to pay current operating and maintenance costs and saving for retirement too.

Expediting can be a lucrative endeavor, but it will not happen without setting well-considered goals and doing what it takes to achieve them.

 

[Streakn1]

Our Contractor Coordinator contacted us by phone Tuesday morning (5/27/08) to inform us that effective 6/1/08 FDCC will no longer be paying reefer relocation. She also indicated that the CCs were calling ALL reefer units to inform them of this change. So, this is not rumor, it is fact. Your call should be coming soon.

I can see where this could potentially change what a reefer load pays per mile and yes the bottom line is this, the overall pay per mile on the run is what dictates choosing to take it or not.

 

[greg334]

I am wondering if they are also going to reduce or adjust the reefer FSC to be the same as the non-reefer trucks (C/D trucks)? It would only make sense to do that.

 

[Tennesseahawk]

I am wondering if they are also going to reduce or adjust the reefer FSC to be the same as the non-reefer trucks (C/D trucks)? It would only make sense to do that.

You mean the way most companies pay a hazmat load the same as a non-hazmat load? I'll be expecting to hear about no liftgate pay soon. All the extras will be just another way to get a normal paying load.

 

[greg334]

You mean the way most companies pay a hazmat load the same as a non-hazmat load? I'll be expecting to hear about no liftgate pay soon. All the extras will be just another way to get a normal paying load.

Wellllll..... not really.

The thing is when you have a reefer on your truck (CR/DR unit), you get the top FSC adjustment under the FedEx system whether the thing is being used or even if it is working. I am wondering if they will bring this down to the C/D unit level to save even more money.

 

[Tennesseahawk]

Wellllll..... not really.

The thing is when you have a reefer on your truck (CR/DR unit), you get the top FSC adjustment under the FedEx system whether the thing is being used or even if it is working. I am wondering if they will bring this down to the C/D unit level to save even more money.

If you mean getting top FSC for a non-reefer load, then I guess you'd be getting something for nothing, right? It works the other way too... when you sit for 5 hours, and the shipper refuses to pay layover... they get something for nothing. I don't advocate it in either case. Pay me for what I do, and I won't charge you for what I don't do.

 

[greg334]

If you mean getting top FSC for a non-reefer load, then I guess you'd be getting something for nothing, right? It works the other way too... when you sit for 5 hours, and the shipper refuses to pay layover... they get something for nothing. I don't advocate it in either case. Pay me for what I do, and I won't charge you for what I don't do.

Well that's the point, sorry I am not clear on things.....

You get it regardless. It is nice but...

Now I haven't heard that they did this since I left but it helped a lot when there was that extra $20 or so tacked on to the bottom line.

See Phil can point to the cost of fuel but being a CR unit, he gets compensated at the top FSC rate and the last time I looked depending on what you get in mileage you can be paying almost a buck a gallon with that FSC - so fuel does not even come into the load equation in the bigger picture.

 

[iceroadtrucker]

I guess its here already Cooperate Trucking and bye bye OOP