Very Disappointing numbers

Streakn1

Veteran Expediter
Since Jan 1st,2008 through today we have averaged 1.6 temp controlled loads per month in our ER-unit. Granted, we've not taken our trailer to be recertified for T-val. But, in talking with several of our T-val friends we're told thats also been slow. Sounds as if we've not missed much there. We should have still been getting temp assured freight. I think we hauled more in our Dr-unit.

It kind of leaves one wondering about justifying the cost and upkeep expenses to operated an ER-unit
 

ATeam

Senior Member
Retired Expediter
You will never know for sure until you fully embrace the opportunity, which means getting all the credentials fully-credentialled ER teams have, getting the truck fully qualified (TVAL), and getting an ER unit, the length of which does not keep you out of Canada.

Enough about you, Streakn1. Now on to comments for anyone who is disappointed in his or her numbers.

I almost never take information from drivers about how busy they are at face value. Even if they are telling you the truth about the exact numbers they generate and prove it by showing you their settlements, one never knows the reasons behind it.

Indeed, sometimes the drivers themselves do not know. Or, they come up with stories about the freight, or the competition, or others being treated special, or dispatch to explain what is "really" going on, when they have not fully looked into themselves.

Sure, it might be slow freight. But it may also be one or two or three of a dozen other reasons; including poor relocation decisions, going home too much, medical issues, time out of service for truck repair they are not telling you about, turning down loads they should take, taking loads they should not, etc.

There are also a bunch of drivers out there that believe the pie is only so big. They lie to others about how slow they are so as not to encourage others to come after "their" freight.

And even if freight is genuinely slow, that happens in this business, as most everyone in the Open Forum has pointed out. It has been said here probably hundreds of times that drivers and owner-operators should be prepared for the slow times. Not everyone listened, did they?

That said, this slowdown does not seem to me to be the vanilla variety of slow times. Fuel prices have not just risen. They have soared. It is not just drivers having sticker shock these days. Shippers are too. Just yesterday, Jevic, no small player in LTL freight, shut its doors, citing reduced freight levels, rising fuel prices and other factors, including the tight credit market. I believe there are a whole lot of meeting room discussions going on at shippers about how they configure their freight and do things differently to combat skyrocketing shipping costs.

If you are thinking about a carrier change or getting your own authority, that is always an option. But when you see one driver after another on OOIDA's magazine and web site pages talking about parking their trucks, and companies like Jevic closing their doors, where will you go that is better?

And if you go to that better opportunity, what will you do to distinguish yourself from the many others that will line up for that seemingly better opportunity too? Or, if they are not lining up, there might be a message there as well.

Being prepared for slow times means just that, being prepared. If you are in a financially weak position, you will be forced into decisions you might not otherwise make. If you find yourself making such decisions, that is a big red flag. An example would be taking a bad run because you need to make your truck payment, or taking runs you otherwise would not because you are trying to build reserves that you do not now have.

As I have said in previous posts, if you are not prepared for the coming recession (or the one that has already started in some peoples' view), get out while the getting is good. Though, it may already be too late as used truck prices are dropping and the money you get for your equipment may not be as good as before.

Right now, Diane and I are disappointed in our numbers too. But most of it is due to the fact that, this year, we have taken several days off to fly Diane home for dental appointments (braces). Every time we feel like we have gotten into a good series of runs, we break the streak to fly her home.

That is on us and us alone. I'm in no position to say how the freight is running compared to last year because we are breaking the streak this year like never before. I take driver reports with a grain of salt. And even if carrier run counts are said to be lower (I don't know if they are), I put little stock in that because I presume that other trucks will quit, leaving enough freight for us.

I can say that because FedEx Custom Critical (our carrier) is not expanding its fleet size. The waiting list to get into White Glove shows that a bunch of folks have identified WG as the better opportunity for them. But FedEx is not taking them on. They are instead trying to balance contractor and customer needs in the current freight environment.

If you know of a place where there is more freight to be had and better money to be made than where you now are, the smart play is to go there. Just be sure you are being honest with yourself about why it might be slow for you where you are now are.

Also be careful about hearing what you want to hear about the other opportunity. Jevic and OOIDA member failure stories are not without reasons behind them. General economic conditions have indeed deteriorated from earlier levels. If it is slow where you are now and better someplace else, a rigorously honest look at both sides of the fence is in order.

Lawrence McCord said it best. "Expediting does not tolerate a personal agenda." The more willing you are to give yourself over to the industry, the better you will do.

Yes, in the eyes of some, that means not having a life. Though in the eyes of others, it can mean having the lifestyle of their dreams.

Conversely, the more you try to fit expediting into your personal agenda, the more frustrated you are likely to become, and the more sense it may make to get out.
 

layoutshooter

Veteran Expediter
Retired Expediter
Slow down? Our numbers are up for the year. We are averaging 25% reefer loads. We are TVAL but have not run a TVAL load as yet. Just had the TVAL for a couple of weeks. Don't know what else to say about it. Layoutshooter
 

Turtle

Administrator
Staff member
Retired Expediter
You could see the writing on the wall for Jevic when they were spun out of Saia to a group of investors for a mere $40 million two years ago. They were in trouble then, and they stayed that way. A month ago they closed 4 of 10 facilities to streamline operations and cut costs, and at the same time began a multi-million dollar IT upgrade (which included some highly advanced, cutting edge, Big Brother black boxes, a $1 million mainframe, and several million dollars worth of other hardware) that was far more money that the company needed to spend on technology upgrades, and they simply couldn't get the funding (tightening credit, as stated in their letter) for the upgrades. Sun Partners decided enough was enough and put a stop to it all, and will likely try to sell it all piecemeal. Sun Partners had very likely hoped to have had UPS Freight buy out Jevic, but UPS went after Overnight, instead. UPS may still try to scoop up some of the trucks and trailers on the cheap now, tho.

Jevic was a relatively small player in the trucking industry, and based on the speculation that they (and other smaller companies) were soon to fail, many large publicly held trucking companies have actually seen their stocks strengthening over the past few months. Jevic closing its doors shouldn't be a surprise.
 

davekc

Senior Moderator
Staff member
Fleet Owner
When the economy picks up, you should see some improvement. You are in direct competition with their own company equipment which they will move ahead of any contractors truck. In a slow economy, they really have little choice.
 

greg334

Veteran Expediter
When the economy picks up, you should see some improvement. You are in direct competition with their own company equipment which they will move ahead of any contractors truck. In a slow economy, they really have little choice.

I am curious Dave, are you talking about FedEx or Jevic or what?
 

Streakn1

Veteran Expediter
So I guess that if I had explosives and ammo along with radioactive credentials, plus had a shorter wheelbase tractor so I could go into Canada I would be getting more temp assured freight? When I hired on over four years ago it was not a requirement to have these credentials to be in White Glove. Has that changed? If I wanted that revenue I surely would have those credentials by now. I did not choose to get into expediting to haul those commodities. I'm sure there are other areas of transporting high value expedited freight that my tractor is suited for.

All I was commenting on is what appears to be a possible decline in temp assured freight, for whatever reason that may be. I can't imagine that all of this freight has switched to T-val. Furthermore, if all I'm needed for is to haul dry freight then I can do it cheaper in a dry van.
 
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easyrider2697

Expert Expediter
I dont think what Phil is saying is that it is "required"...but it sure does offer more opputurnities, and different locations, and in this business, location and credentials moves you to the top of your game..
 

TeamCaffee

Administrator
Staff member
Owner/Operator
Not real sure how you could be in direct competition with company equipment as FedEx Custom Critical does not own any equipment.
With the economy slowing down our thoughts are to have every credential possible to get, have the truck set up to take any load offered and get through this year.
 

greg334

Veteran Expediter
Your credentials are only as useful if the company sells the services and captures the sale.

I know others understand what I am about to say but for those who don’t, Dave made a very good point;

You are in direct competition with their own company equipment which they will move ahead of any contractors truck. In a slow economy, they really have little choice.

What this means is very simply that a company like FedEx will shift customer solutions to internal solutions (like Freight for example) to capture more revenue – keep in mind that the company runs on tighter margins than we do. CC is an expensive resource when compared to running a freight truck at .60¢ a mile (estimated and adjusted for fuel costs) and by convincing the customer that they can use an inexpensive alternative to CC, excluding specialized freight, they can capture that sale easier in many cases and make a little bit more on it than if they would if they had a CC solution for the sale. Exclusive use may not fit the customer’s needs but was a selling point to the customer when that was the only thing offered. Now they offer more than that.

I know this may be hard to understand for some but we are contractors, everyone of us which means we are an adjustable and if need be disposable resource for the company. We are not employees that have a built in overhead when the company needs to reduced in numbers but in reality we actually cost the company more for the privilege of that flexibility that they need to do business in a competitive world of logistics without the residual costs when there is a reduction made.

You got to see the bigger picture of the company.

Now my above statement also has one other piece to it and goes to something I was kidding about, there are a division between contractors – WG being the elite that is the more costly to maintain (or supposed to be) and the common surface group. As I was messing around in my first post, there was a serious side to what I was getting at - FedEx will take care of WG trucks first to keep them in the fleet to avoid the cost of replacing them. Does this make sense?
 

Streakn1

Veteran Expediter
You will never know for sure until you fully embrace the opportunity, which means getting all the credentials fully-credentialled ER teams have, getting the truck fully qualified (TVAL), and getting an ER unit, the length of which does not keep you out of Canada.

Enough about you, Streakn1.

Lawrence McCord said it best. "Expediting does not tolerate a personal agenda." The more willing you are to give yourself over to the industry, the better you will do.

How does my making a public observation about one type of service thats offered to the customers appearing to be slow (at least for me) turn into the above quote? My
"credentials" have nothing to do with the number of temp assured loads I get or don't get. So, I guess if you're a super team with all the bells and chimes your gonna get all the temp assured freight you can handle? Could favoritism be alive and well? Sound like it!

My lack of certain credentials has nothing to do with me being able to currently service a temp assured customer. Furthermore, I don't remember complaining about not getting any other types of freight in this thread. I also don't remember discussing my personal agenda in this thread, but since I'm the originator of this thread I will take it as directed at me in part.

I get it now, I'm just a waste of a good WG position because I choose not to be "fully credentialed" and have a long wheelbase tractor.
 
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davekc

Senior Moderator
Staff member
Fleet Owner
I don't know if there is favortism or not at CC. As I have said before, if they have an acceptance policy, then you have favortism. If not, then why have that type of policy?

We are not contractors for CC, but have hauled their freight. It has been posted here a few times by others, but the reality is Fedex sells their whole program to a potential customer. CC is a very small but vital part of that.
Fedex will move any potential freight with their own company trucks, before they will use a contractor. It makes total sense.
Over flow or exclusive use will go to CC as well as runs that are unprofitable for their company fleet to run because of distance back to a terminal, or because of extended waiting periods. Even their mailings and phone calls to customers reflect that type of marketing. It isn't exactly a secret.
And no....it isn't a bashing thread, it is a reality of how they currently operate in a tight and unstable economy.
 

OntarioVanMan

Retired Expediter
Owner/Operator
Greg said...."I know this may be hard to understand for some but we are contractors, everyone of us which means we are an adjustable and if need be disposable resource for the company. We are not employees that have a built in overhead when the company needs to reduced in numbers but in reality we actually cost the company more for the privilege of that flexibility that they need to do business in a competitive world of logistics without the residual costs when there is a reduction made."

So in other words CC fills a need....Not "special or elite" just a need to dump 3 skids on a contractor for $1.50 a mile vs a company truck going 10 hours out and back being paid by the hour and overtime...its cheaper to give it the contractors and if they lose out...they are expendable...

So much for that warm fuzzy feeling on driver appreciation day...
 

ATeam

Senior Member
Retired Expediter
I don't know if there is favortism or not at CC. As I have said before, if they have an acceptance policy, then you have favortism. If not, then why have that type of policy?

I don't see the connection between favoritism and tracking a contractor's load acceptance percentage. When you say "favoritism" are you refering to the unfair dispatch favoritism that has been recently discussed in the forum? If so, you need not wonder if it exists at FedEx Custom Critical. It has been made quite clear here in the Open Fourm that it is rare at FCC, and where it is found, the offending dispatcher is fired.

What exactly do you mean when you say "...if they have an acceptance policy, then you have favoritism."? Who are the "they" you are talking about, and in what sense are you using the word "favoritism?"
 

iceroadtrucker

Veteran Expediter
Driver
Here is a tip start heading home and they will hit ya with the loads.
But when ur ready to come back out beware Most likely U wont get em. The first few hours at home they will hit ya with the Kitchen sink to get ya outa there after that U be Bad Boy Bad BOY. Get my drift.
U have Ur right to ur big truck and U have ur right to take or turn down loads. U have a right to make a buck and not to loose money its your business and U dont have to take a loss for no one.
somtimes to get to a good area ok if it will cover the fuel. But if to the middle of no where na I dont blame ya one bit
good luck man and by the way nice rig and Reefer is it an utility by chance?
 

TeamCaffee

Administrator
Staff member
Owner/Operator
Dave, this is getting insane. If we have an acceptance rate of 80% and the truck sitting next to us has an acceptance rate of 50% everything else being equal and the 50% truck has more dwell time then us they get the load offer first. Acceptance rate does not have anything to do with load offers.
We have sat in on the calls where a full service solution is offered to a potential customer and we were very impressed. Immediately the customer is quoted several different ways to ship their freight. You can choose between a FedEx jet to the home delivery the solution fits the customer not the other way around. That is the beauty of FedEx they are a full solution service. Each division has there own specialty and is quoted to the customer in that fashion the customer is the final say so on how the freight will be shipped.
 

iceroadtrucker

Veteran Expediter
Driver
Team Caffee that sounds wonderful and is
However what they are talking about is favortism.
But we all know that dont happen right. ;)
 

davekc

Senior Moderator
Staff member
Fleet Owner
I won't beat a dead horse on economics and the current business climate. Talcal did a pretty decent post on how businesses are solicited. Their primary goal is to sell Fedex freight. Their goal is to protect their stockholders and their own assets. CC has very little in the way of assets.
A search on his posts should bring it up.
I'm not at Fedex so it doesn't have any significant impact to me. In his case it did. Enough to sell off his fleet of trucks.

With regards to favoritism and acceptance ratings, it again is common knowledge that one goes hand in hand with the other.
If not, why have them?
Also, when they have their contests and you are pitting a east coast runner that does many runs against a truck they may only have a handful of run offers a week, the guy with multiple run offers wins their trips or whatever else just by a law of averages. Common sense? That hasn't changed since the days when I was there.
It is still favoritism? Maybe, maybe not? If not, explain what the purpose of a acceptance policy rating policy actually is? I would see little reason to have it if it isn't used?
Just the nuts and bolts of purpose, not a sales pitch.
Oh..Phil...you may want to respond to Streakin's post since he is current there at Fedex and he can't figure it out either. Or...maybe he has?
 
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