The Sinking Of The Titantic - FDCC

[Brisco]

One of my all time favorites, and probably most admired Expediter here, is the ATeam. (sorry Greg ) I've followed Phil and Diane back when they were just getting into this and posted very sporadically on the old board format Lawrence had, and have kept up with his website blog since he started that too.

Well, Phil is not happy with the changes at FedEx here recently, company owned equipment and all, talks about it more and more everyday, but yet just will not "jump ship". Not yet anyways............

Here he's started another thread over this down in the FedEx forum, of which anyone that doesn't run for FedEx can't join in on.

http://www.expeditersonline.com/forum/fedex-custom-critical/48406-injustice-averted.html

Down in post #6 he starts this out with this paragraph:

Diane and I have noticed the same thing. We know expediters who lease their trucks to competing carriers and are making more money than we are. That was not the case before but as our revenue declines, it is now.

I'd just like say, remember the Titantic?? Hundreds and hundreds of people died because there weren't enough lifeboats for all the passengers on the Titantic.

Right now from what I've been reading about this company owned equipment that FedEx is referring loads to, wouldn't the metaphor relate to FDCC as being the sinking Titantic for the "WG Contractors" and many other contractors are already jumping ship, or say climbing into the lifeboats by switching over to other carriers so that they can survive??

What's going to happen to these WG contractors, Phil as an example, who keeps hanging onto the railings of the Titantic just hoping and hoping that by some miracle something is going to pop up and fix that huge hole in the Titantic, which will then keep them afloat?? And then when they finally realize that there is not going to be any fix, or any fix anytime soon, that all the lifeboats (positions at other carriers) are already full, with no open seat seen anywhere. Of which will then leave them out there in the vast ocean trying to survive on their own?

Kinda hard to come out and explain it in a simple term, but most probably get what I'm gettin' at. Do you think it's time to finally jump ship Phil??? Others obviously are. In your "changing carriers" gameplan, have you put in play a solution that covers the "what if" if all the other Expediting Companies are at max capacity when it comes accepting trucks such as yours?

I don't know, but if it were me, and I was hanging onto that railing just as tight as I could "hoping" for a change for the better, and kept watching it get worse, and some rescue boat came flying up picking up what few survivors who wanted to jump into that boat then and there, I'd jump into that boat as quick as I could to get away from that sinking monstrosity once and for all.

Just food for thought......My Opinion. Placed it up here in the open since I'm not allowed to post down there in the FedEx forum.

 

[scottm4211]

This should be good.

 

[chefdennis]

I too have been reading the trials abd tibulations over at the FDCC board and I have also been wondering what keep those WG contractors there...I seen that Layoutshooter had posted that they were "getting their resume together"...I'd think that Phil and Diane would have already been getting these things in line also....

Going into business for yourself in any business is a risk...hanging on when you see the profits slip (and figure that the trend is only going to continue) isn't risk taking, its bad business...

 

[layoutshooter]

I too have been reading the trials abd tibulations over at the FDCC board and I have also been wondering what keep those WG contractors there...I seen that Layoutshooter had posted that they were "getting their resume together"...I'd think that Phil and Diane would have already been getting these things in line also....

Going into business for yourself in any business is a risk...hanging on when you see the profits slip (and figure that the trend is only going to continue) isn't risk taking, its bad business...

The big problem is that, at least so far, everything that I have looked into to date pays even LESS than what I am making now.

Hard to move for less money. Going broke makes more sense.

 

[Turtle]

This is a multi-step process where the Fed is about on step 50 of the 75 steps it will take to completely engulf CC. Many of the steps haven't been as apparent and overt, although looking back on them you might see it, new computer systems, dispatch procedures, new QCs, lots of in-house reorganizing, lots of customer re-education, lots of refer trailers and self-contained refer modules which can be hauled on an LTL Freight trailer. Now that those are done, the more obvious steps are being taken, like removing the difference between Freight and CC with the logo colors, preferential company dispatch. I don't know if it's the sinking of the Titanic as much as it is the gravy train on the cattle drive is being replaced by the dining car on the cattle train.

 

[layoutshooter]

Well, when it gets to the point in this business that I can make more selling apples on the street I will buy a cart. I find it so hard to believe that people are willing to work for nothing, or less.

It would be nice ( I am REALLY dreaming of course) that these mega-companies would at least tell people what they are up to and that they are no longer going to fit in their business plan.

That would make it much easier to plan. Of course, NO PLACE I have ever worked has been that way.

 

[xmudman]

It would be nice ( I am REALLY dreaming of course) that these mega-companies would at least tell people what they are up to and that they are no longer going to fit in their business plan..

Phil made that very point in today's blog post. He also stated that it was no longer a question of IF he and Diane were leaving FECC, but when.

I wish them best of luck

 

[davekc]

This is a multi-step process where the Fed is about on step 50 of the 75 steps it will take to completely engulf CC. Many of the steps haven't been as apparent and overt, although looking back on them you might see it, new computer systems, dispatch procedures, new QCs, lots of in-house reorganizing, lots of customer re-education, lots of refer trailers and self-contained refer modules which can be hauled on an LTL Freight trailer. Now that those are done, the more obvious steps are being taken, like removing the difference between Freight and CC with the logo colors, preferential company dispatch. I don't know if it's the sinking of the Titanic as much as it is the gravy train on the cattle drive is being replaced by the dining car on the cattle train.

This all started several years ago with changing the FSC and percentages. Can't say they weren't warned. Purple haze I guess. One thing has become clear, that ones that are running a high gross revenue, may be keeping very little of it.
"It is not what you make, it is what you keep".

 

[chefdennis]

Layoutshooter wrote:

It would be nice ( I am REALLY dreaming of course) that these mega-companies would at least tell people what they are up to and that they are no longer going to fit in their business plan

It has been talked about here before, but the fact is for the big companies, the contractors are nothing more then another commodity to be used as they see fit...when the commodity no longer serves a useful purpose, it is discarded...when a tractor is past it worth to the company..its gone...

In this situation, it simply looks like becauseof the contracts in place with % of load contractors, FCC is using other avenues to over time phase them out by making it difficult for them to stay and they will leave on their own...

The company is there to profit for the stockholders...theydon't feel any need to define their purpose or how they are doing that to the contractors, and that is the way if Big business...the thought that the company and the contractor are "parteners"...has been or should be realized as a myth when contracting to these bigger companies....

 

[greg334]

Brisco, I am put off by that - just kidding.

The problem is that he is one of many and so is layout who now see one problem that has been around for a while. I know other WG teams making money, they don't seem to complain or feel the company is abandoning them in the dust but they also know, as one put it "the fed is in business for themselves and we provide a service to them ... we are not employees nor are our names end in Smith"

It doesn't matter what he gets or others get, it matters that the customer is retained. The use of company owned equipment is nothing new and neither is flat rate system that is used in other parts of the company. What is new is the revelation that this is happening.

The thing that gets me is that the person I quoted is right, this is a business and not something that is perpetuated for the benefit of one group or another other than the company and the customers. It seems that they have operated with the idea that profit takes precedence over friendship and those who are actually making the money seems to be on board with that attitude.

I see this as a evolution, adjusting to the changing market for FedEx and those who feel that they make this massive investment with the intent that the company will pay for that investment need to educate themselves about how to run a business and how to be flexible.

In this market environment, having a C unit with a reefer may be a serious problem if one is to expect to be an "elite" operator. In other companies, you compete with smaller units that are more flexible and overlooked because of the floor space you have and only a couple compete for those specialized freight markets where they compete with other carrier outside of the "expediting" market. If this seems to be inaccurate, believe me it took me a while to find out what was wrong - it was the size of my truck that held me back.

 

[boonsdad]

Maybe if they had a clue as to how many trucks they are losing because of the lowball offers they would begin to up the anty and try to hold on to what they have, it looks like we will be pulling plastic over our Fouth of July holidays if things dont improve quickly, we run dry box with all qualifications.

We asked about these low rates six months ago and was told it was due to first quarter slow times and rates would improve substantially in the second quarter although they have not improved, just more of them. There is a link to a Custom Critical survey on last weeks fleet message, we filled it out and were tottally honest.

 

[Turtle]

Maybe if they had a clue as to how many trucks they are losing because of the lowball offers they would begin to up the anty and try to hold on to what they have...

FedEx leaves nothing to chance. They are more anal than Phil, if you can imagine that. Do you really think they don't have a clue about how many trucks they are losing and why? Whey know precisely how many trucks they are losing, and they know why, and they have a pretty good idea at what rate they are going to lose them.

 

[layoutshooter]

FedEx leaves nothing to chance. They are more anal than Phil, if you can imagine that. Do you really think they don't have a clue about how many trucks they are losing and why? Whey know precisely how many trucks they are losing, and they know why, and they have a pretty good idea at what rate they are going to lose them.

They do and they are planning for that loss, it is what they appear to be after.

That is their business. I would, however, like the common courtesy for them to just come out and tell us what their new model is going to be, what they want for trucks etc and then we could make a decision based on fact rather than conjecture or rumor.

 

[Turtle]

I agree with you, they should, but they won't, as that opens things up to chance, or at least too rapid of a change before they are prepared for it (like a mass exodus). Rumor and conjecture, and "bad times" (including being dispatched around) better enables them to predict the rate and percentage of trucks that leave. When they are ready to handle a mass exodus, they'll tell everybody what they're going to do, but not before. It wouldn't be in their best interest to do so. I mean, they might lose some trucks that they actually want to keep. WG and TVAL won't disappear. After all, you can't ship turtle eggs by Freight, and they don't want to lose that kind of reputation. Wouldn't be prudent.

 

[layoutshooter]

I agree with you, they should, but they won't, as that opens things up to chance, or at least too rapid of a change before they are prepared for it (like a mass exodus). Rumor and conjecture, and "bad times" (including being dispatched around) better enables them to predict the rate and percentage of trucks that leave. When they are ready to handle a mass exodus, they'll tell everybody what they're going to do, but not before. It wouldn't be in their best interest to do so. I mean, they might lose some trucks that they actually want to keep. WG and TVAL won't disappear. After all, you can't ship turtle eggs by Freight, and they don't want to lose that kind of reputation. Wouldn't be prudent.

Lying by omission is still lying. It may suit some need to allow this stuff short term be things like this NEVER improve things long term.

They are what they are. I hold no illusion. Never have. It has just gotten old. I am too old and too tired to keep dealing with this garbage. I am just going to become a bum and let the government support me!! I would be better off!

 

[ATeam]

What's going to happen to these WG contractors, Phil as an example, who keeps hanging onto the railings of the Titantic just hoping and hoping that by some miracle something is going to pop up and fix that huge hole in the Titantic, which will then keep them afloat?? And then when they finally realize that there is not going to be any fix, or any fix anytime soon, that all the lifeboats (positions at other carriers) are already full, with no open seat seen anywhere. Of which will then leave them out there in the vast ocean trying to survive on their own?

You are drawing inaccurate analogies, making false assumptions and taking a lot of liberties stirring things up with contractors who are in a difficult situation at the moment. And for what? Your online entertainment?

 

[ATeam]

When they are ready to handle a mass exodus, they'll tell everybody what they're going to do, but not before. It wouldn't be in their best interest to do so. I mean, they might lose some trucks that they actually want to keep. WG and TVAL won't disappear. After all, you can't ship turtle eggs by Freight, and they don't want to lose that kind of reputation. Wouldn't be prudent.

I don't think there will be a mass exodus. Some contractors will drift off to other carriers, their own authority, or other opportunities. Some have already done so. Some will do so soon. Some will do so later. Others will shift to flat-rate work. Still others will continue with the company forever regardless of how much money they are making or losing because FedEx means that much to them.

That's about the contractors. About the company, it will recruit its way out of any problems new policies create and continue as a fierce competitor among expedite carriers.

 

[Tennesseahawk]

You are drawing inaccurate analogies, making false assumptions and taking a lot of liberties stirring things up with contractors who are in a difficult situation at the moment. And for what? Your online entertainment?

Maybe because he can. Maybe, in his mind, his analogies and assumptions aren't false. And as far as stirring things up, I remember many posts about FXCC doing just that... as well as one White Glove member.

 

[ATeam]

And as far as stirring things up, I remember many posts about FXCC doing just that... as well as one White Glove member.

Without specifics, I have no idea what you are talking about.

Edit: On the other hand, as I think about it, turnabout is fair play. There have been times when I have been insensitive to expediters who were going through a difficult time.

 

[cheri1122]

The company is there to profit for the stockholders

Sums it up in a nutshell: the stockholders are the highest priority.
Anything that has a negative impact on the stockholders' 'right' to profit is an obstacle to be surmounted.[I keep wondering how we as a society got to this point, much less defend it.]
...theydon't feel any need to define their purpose or how they are doing that to the contractors, and that is the way if Big business...the thought that the company and the contractor are "parteners"...has been or should be realized as a myth when contracting to these bigger companies....
But 'they' do feel a need to gain the cooperation of said contractors to achieve the goal, thus the 'myth'. In other words, they have no compunction when it comes to misleading, [lying by omission] to retain that cooperation.

The phrase 'business ethics' has become an oxymoron - the ethics of honesty, loyalty, partnership, and duty [to society, as well as one's fellow man] have been discarded in the pursuit of profit. And the 'gamble' of stockholders has become an entitlement to a profit at whatever cost is required to achieve it.
That's right: an ENTITLEMENT.

Yes, I am a bit idealistic, and therefore doomed to be disappointed by the constant proof that power corrupts, and greed and self interest rule.
When is enough profit enough?