Today's Weekly Bulletin
- Thread starter aimeejos
- Start date
I agree! FedEx should not be worrying about "market rate"... They should be setting a standard that puts us above it. But the move to more general freight to increase profits is driving that standard down. At least that is how I see things from an E Surface unit perspective. Not sure about other unit sizes. And the last sentence upsets me- "We also understand that you will continue to make decisions that are best for your business, and we respect that as part of the contractor relationship." If that's the case they need to remove the acceptance rate from the equation. If you sit for days on end declining loads then you should be passed up because maybe this isn't the right company for your needs. But if you decline loads but still are taking a load everyday like we do it should not have any weight. Last thought- be more open with Owners about where the rates are- 3 yrs of experience tells me $2 a mile all miles was about average. Now it's down to $1.70 or lower with no explanation until now. Keep us in the loop so we have the information to make the right business decisions.
Personally I am glad the fleet bulletin did NOT say " We will be going to flat rate on such and such a date".
There is only so long that a company can pay more then they make or a bigger percentage then they anticipated when working on a budget.
There is only so long that a company can pay more then they make or a bigger percentage then they anticipated when working on a budget.
The market dictates the rates; not Custom Critical. There are several other carriers that do what we do, and some of them better than us......even more so in a surface operation. If we cornered any particular market, maybe then we could set rates. If they price themselves out of the business, then.....they're out of business!
To your last point, I agree. Dissemination of information has always been, uh, lacking. That could improve greatly.
I would not be surprised one bit if that is being considered. One facebook post this week vaguely says, "went to a particularly crappy area, and FDCC paid dearly". How long does ANYONE think that can continue?
zorry
Veteran Expediter
In a recent candid discussion of this issue with mid-level manager I was told "if you don't counter-offer how do we know if we've underpriced a market ?"
Not every offer is going to come spot-on due to deadhead. Together we've got to work through the tough loads and try to give value to the shipper to maintain respectable rates.
Not every offer is going to come spot-on due to deadhead. Together we've got to work through the tough loads and try to give value to the shipper to maintain respectable rates.
zorry
Veteran Expediter
On the flat rate issue. Look at my numbers for 2013. Pay all miles at my all miles rate and bring it on !
In reality, not a fan of flat rate. It takes the business sense away and makes us mindless sheep.
And most likely wouldn't reward the extras us TVal/Art/ people invest in.
Leave the good operators as is. Work on the people that see they have you by the short hairs and take advantage of the situation.
LISTEN to the driver as to the logic of the counter-offer. If it makes sense, even though out of the standards, how can you be aggravated with him ?
If all the loads were winners, we'd be an asset based division.
In reality, not a fan of flat rate. It takes the business sense away and makes us mindless sheep.
And most likely wouldn't reward the extras us TVal/Art/ people invest in.
Leave the good operators as is. Work on the people that see they have you by the short hairs and take advantage of the situation.
LISTEN to the driver as to the logic of the counter-offer. If it makes sense, even though out of the standards, how can you be aggravated with him ?
If all the loads were winners, we'd be an asset based division.
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zorry
Veteran Expediter
Actually they do.
I spoke to Miss Kat about bringing two pallets of new toolboxes from Or to In for me in June.
Thought I'd give her whatever Roadway or whoever wanted and I'd get her excellent service.
And possibly she could fit another shipment or a tag-along as she would pull trls also.
Fedex Frt gives the shipper a 75% discount which just blew me away.
Miss Kat couldn't touch the rate and Fedex did a wonderful job.
This was Freight.
On the FDCC side I imagine there are places where volume discounting comes into play.
I recently deadheaded 700 miles to do a 40 mile reefer load.
My first counter-offer was jumped on, so I must have been reasonable.
The long deadheads are where I think these issues come into play for us.
ChanceMaster
Expert Expediter
I agree on counter offering a reasonable rate, not every run is a home run regarding DH and delivery location. I'm assuming surface freight trucks are holding out for WG rates, or some people are countering pie in the sky rates. Be reasonable. I'd like to see a frank and open discussion between the carrier and drivers on this topic.
zorry
Veteran Expediter
I'd prefer to see some quiet and gentle "guidance" on the issue.
The unreasonable would be the loudest. And probably try to control the discussion.
Anyone that is a consistent problem should be spoken to.
Maybe they have unrealistic expectations or their costs are too high for what they have to offer.
Don't beat us all down to get them in line.
Ask me to adjust, if needed. If I can't I'd have to look for greener pastures.
I'm fine just as things are. When I counter, sometimes they say no. If in a bind, they'll call and we'll try to reach a happy conclusion.
In 5 years I think I've only bent them over once. I felt guilty.
I've probably made it up to them.
I sleep well at night
The unreasonable would be the loudest. And probably try to control the discussion.
Anyone that is a consistent problem should be spoken to.
Maybe they have unrealistic expectations or their costs are too high for what they have to offer.
Don't beat us all down to get them in line.
Ask me to adjust, if needed. If I can't I'd have to look for greener pastures.
I'm fine just as things are. When I counter, sometimes they say no. If in a bind, they'll call and we'll try to reach a happy conclusion.
In 5 years I think I've only bent them over once. I felt guilty.
I've probably made it up to them.
I sleep well at night
zorry
Veteran Expediter
I'm sure they don't need to have the drivers let them know the market. An occasional nudge may help.
Look at a Jamaica NY to Long Island, City.
Most of our fleet sits in Bordentown.
We probably can't run it for anywhere near what a local cartage guy can. He's hours closer and has follow up work right there.
If i just turn it down, w/o a counter offer, the agent may not understand that she just asked me to spend 6 or 7 hours and lots of tolls doing a short, no toll run.
An agent offered me an LAX to Ontario run one rainy afternoon. I was moving from Barstow to Tucson.
"It's only 60 miles she explained."
The extra 120 miles, about 4.5 hours in traffic plus loading and unloading beat me out of a night sleeping with the wife.
Although it was only a 60 mile trip, it's nothing like a Green to Cleveland trip.
Look at a Jamaica NY to Long Island, City.
Most of our fleet sits in Bordentown.
We probably can't run it for anywhere near what a local cartage guy can. He's hours closer and has follow up work right there.
If i just turn it down, w/o a counter offer, the agent may not understand that she just asked me to spend 6 or 7 hours and lots of tolls doing a short, no toll run.
An agent offered me an LAX to Ontario run one rainy afternoon. I was moving from Barstow to Tucson.
"It's only 60 miles she explained."
The extra 120 miles, about 4.5 hours in traffic plus loading and unloading beat me out of a night sleeping with the wife.
Although it was only a 60 mile trip, it's nothing like a Green to Cleveland trip.
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I did three runs from Bordentown to Jamaica or Long Island last week. Two of them had four stops. They took eleven to thirteen and a half hours to complete. I asked for and was paid well to do them. Otherwise I would have politely declined. I also did three runs at the offered rate.
Traffic was really bad out there and will be worse this week do to the Superbowl.
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Traffic was really bad out there and will be worse this week do to the Superbowl.
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CCDriver
Active Expediter
I am but a humble pirate but it seems to me that theres way too many variables to ever take away our reasonable right to negotiate. Speaking from the Whiteglove custom critical angle anyhow.
We are a division made up of private owners and fleet owners who need a certain income to keep ourselves afloat in a bad economy (Going to get worse before it gets better Thanks Obama). Trucks aren't cheap, maintaining them isn't cheap,and this lifestyle of not being at a home base should pay a decent dividend. Hell if you aren't making the money might as well be working at Walyworld and home every night sleeping in a bed that doesn't bounce around.
This "We are going to start penalizing for not accepting loads" didn't have the desired effect I guess. Why? Because we have to continue to run and keep our bottom line to make it all worthwhile. When the load offers come over at 1.10 or 1.20 you just have to not accept them.
If you did sure your acceptance rate would be great but when the truck needed tires or some serious work done well...... They'd be a big flower planter in your yard.
Not sure how the flat raters are doing it. 1.00 a mile the drivers paying fuel, getting the fuel surcharge. The owner getting a whopping .40 a mile to maintain the truck seems impossible till you see some of their trucks. Ratty looking if a truck could have mange it would be them.
Even if they came out with a 2.00 a mile rate wpuld that work for all runs? No because who would take a run of 150 miles that picks up one day and delivers the next 2 days for 300.00 You get a week of loads like that and have a great 600-700 week. That would thrill drivers and owners alike.
Then there's the fact of all loads and states aren't equal. You really think that something with a lot of labor shouldn't be negociated? Or yeah this load ends up in South Dakota have fun sitting there for several days.
Not sure what's happening at Fed Ex but it's safe to assume they aren't listening to the owners or drivers. It falls on deaf ears that's for sure. In the immortal words of Dave Wilson "It doesn't matter who's inconvienanced as long as it's the drivers". Feel free to use that phrase whenever it fits. Going to make some T shirts with it soon.
We are a division made up of private owners and fleet owners who need a certain income to keep ourselves afloat in a bad economy (Going to get worse before it gets better Thanks Obama). Trucks aren't cheap, maintaining them isn't cheap,and this lifestyle of not being at a home base should pay a decent dividend. Hell if you aren't making the money might as well be working at Walyworld and home every night sleeping in a bed that doesn't bounce around.
This "We are going to start penalizing for not accepting loads" didn't have the desired effect I guess. Why? Because we have to continue to run and keep our bottom line to make it all worthwhile. When the load offers come over at 1.10 or 1.20 you just have to not accept them.
If you did sure your acceptance rate would be great but when the truck needed tires or some serious work done well...... They'd be a big flower planter in your yard.
Not sure how the flat raters are doing it. 1.00 a mile the drivers paying fuel, getting the fuel surcharge. The owner getting a whopping .40 a mile to maintain the truck seems impossible till you see some of their trucks. Ratty looking if a truck could have mange it would be them.
Even if they came out with a 2.00 a mile rate wpuld that work for all runs? No because who would take a run of 150 miles that picks up one day and delivers the next 2 days for 300.00 You get a week of loads like that and have a great 600-700 week. That would thrill drivers and owners alike.
Then there's the fact of all loads and states aren't equal. You really think that something with a lot of labor shouldn't be negociated? Or yeah this load ends up in South Dakota have fun sitting there for several days.
Not sure what's happening at Fed Ex but it's safe to assume they aren't listening to the owners or drivers. It falls on deaf ears that's for sure. In the immortal words of Dave Wilson "It doesn't matter who's inconvienanced as long as it's the drivers". Feel free to use that phrase whenever it fits. Going to make some T shirts with it soon.
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Or in the immortal words of OOIDA "Just Say NO to CHEAP freight"
The price of our vehicles or operations does not set market rate... Compare what our averages are on loaded miles to another company.
I always have to remind myself not all companies pay anything dead head... Like someone else pointed out we often have to dead head a long ways to get a load and this is sometimes due to a truck who is sitting beside the load that refused it.
I always have to remind myself not all companies pay anything dead head... Like someone else pointed out we often have to dead head a long ways to get a load and this is sometimes due to a truck who is sitting beside the load that refused it.
Maybe the sales agent that books the freight at a steeply discounted rate just to earn a commission should learn to say no to cheap freight. If they are bidding too low there won't be any money to pay a fair rate to the trucks or no profit for the carrier. But I am sure they will still get there commission.
Will anyone working in Green take a pay cut for a few hours a day because the rates are low?
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Will anyone working in Green take a pay cut for a few hours a day because the rates are low?
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