>An interesting point was brought up about the true bottom
>line of WG versus regular units. With the significantly
>greater investment and the potentially greater deadhead on
>loads does WG really pay that much better than the regular
>fleet?
Leo,
You just stated the central question every prospective White Glove owner/operator or fleet driver must answer for one's self. Diane and I have done the analysis and believe - based on nearly two years of driving experience and our own numbers - that we'll do better as a FedEx CC White Glove team than we'd do in any other sector of the expediting industry; thats as fleet drivers, and as owner operators when our new truck arrives.
>Even without reefer capability there are thousands and
>thousands of dollars tied up in lift gate, pallet jack,
>straps, blankets, dollies etc. to run a WG unit. I believe
>WG requires 13k payload capability as well and for many
>units that would require thousands more for a lift axle.
One minor correction. FedEx CC White Glove Services does run C-units too; 14-foot minimum box size, payloads up to 5,000 lbs. D units must go up to 13,000 lbs, 22-foot minimum box size.
>So with maybe $15,000 additional investment at a minimum and
>all the deadhead how is it really?
I can answer that one only from our own experience. If the Panther advertised rate of $1.25/ loaded mile on a D-unit is what is actually paid (that is my understanding, open to correction), I know of at least one WG team (us) that does significantly better than that on ALL miles. Yes, we have a lot of deadhead, but the loads pay well enough to make the deadhead worth it. Or, if they don't pay well, we decline the loads. That keeps our all-miles figure higher than Panther's loaded miles figure.
Looking also at the fleet averages FedEx publishes for its non-WG D-units, I can say this WG team does better than that as well.
Do we do well enough to justify the investment in a WG truck and required equipment? We believe so, and are putting our money where our mouth is.
Talking to friends in WG
>they had a 110 mile run paying $650. That's an amazing rate.
>After their DH to the pickup site and the DH to where they
>had to be for the following load the net for the run was
>$1.78 per mile. That's still a good rate but if you
>separated out FSC, loading fee, unloading fee, inside
>delivery fee then the base rate isn't much above a regular
>unit.
Single-run examples can be used to make any point one wishes about WG or Special Services (Panther). A comprehensive analysis should be done by each driver or owner/operator to answer the spot-on question you raise.
Prospective new WG drivers are in a better position to do this than prospective new WG owner/operators. They can call several WG fleet owners that advertise in the EO classifieds for WG drivers. The fleet owners have a track record of how their WG trucks and drivers have done. While recruiters can cite fleet averages, fleet owners can talk very specifically about individual trucks and drivers they've run in the past.
Note too, that some FedEx CC fleet owners run both WG and non-WG (surface expedite) trucks in their fleets. Those folks would be the best people to weigh in on the question you raise. They have the real-world experience and numbers on which to base their opinions.
Allow me to enter those fleet owners into evidence that WG glove is a positive choice to make, at least for some. They purchase and equip WG trucks (reefer and dry box) and recruit WG drivers. If they did not belive WG would do better, they would stick to non-WG trucks, would they not?
A comprehensive analysis must include not only the dollar/per mile rate a truck and driver (or team) can produce, but also the dollar/per day.
Because WG trucks are equipped as they are (equipment you pointed out), and drivers have qualifications they do (security clearances, deemed professional enough in an interview to have courriers accompany them in the truck - art loads mostly, and certain types of HAZMAT that require additional training), WG trucks and drivers are eligible to carry more types of freight than non-WG trucks. That means - in theory at least - that a WG truck will receive more offers than a non WG truck.
I beieve it to be fact, not theory but do not wish to argue the point here. I'll meerly state my belief, which is based on personal experience as a WG driver. The facts can be obtained from a recruiter or someone else in the know at FedEx that has access to the WG and non-WG truck run counts for the entire fleet.
What is better; to be a non-WG truck and sitting with no load, or to be a WG truck running a lift gate and furniture pad load at ordinary freight rates?
Those extra charges such as lift gate, pads and straps, inside delivery, labor, debris removal, etc. are called accessorial charges. Some come because of how your truck is equipped. Some come by the sweat of your brow. Both increase the rate per mile on the load. As we see it, throwing in a bit of labor on one or both ends of the load adds to our bottom line. It's rare that time spent providing labor would cause you to lose your next load. It's more the case that time not providing labor at the end of a load is time you'd be sitting waiting for the next one.
It matters little to us if we make our money driving the load or handling the freight. We do both with year-end, bottom-line profitability in mind. Accessorial loads give us the opportunity to boost that number.
Finally, it is not insignificant that Panther II created a special services division to compete head on with FedEx WG. It seems that a number of WG drivers, fleet owners, FedEx WG itself, and most recently Panther Special Services are stating by their actions that they believe the WG/Special Services style of expediting is lucrative enough to be worth the investment.
WG is not for everyone. Work styles (professionalism, willingness to wear a uniform, problem solving abilities at the pickups and deliveries, etc), physical capabilities, up-front money to build and equip WG trucks, and more all enter into the WG analysis.
As I said above, each prospective WG driver or owner/operator must do one's own comprehensive analysis.