FedEx Custom Critical to start posting loads on the Sylectus

Deville · Jul 17, 2013

These loads that FEDEX will be putting on Sylectus aren't true Expedite loads. I think many of these loads will be loads that FDCC bid on from other load boards that they can't cover because of the cheap rate.

FEDEX has been bidding on load board loads for a while now. Some are good others not so much & they have to be farmed out.

FDCC like any other company has to always be generating revenue even if it's a robbing peter to pay paul type of deal. As long as there is a profit at the end of the fiscal year it evens out.

We have seen a lot of cost cutting messure by FDCC recently, this in it's own way is another.

Murraycroexp · Jul 17, 2013

Tennesseahawk said:
It doesn't take brick and mortar to sign on 10 trucks. That's a misnomer. I've driven for 10+ truck companies that should have their brick and mortar leveled. They were, and are, garbage.

........

Tennesseahawk · Jul 17, 2013

Murraycroexp said:
........

What does "square, square, 8 dots" mean? I mean, besides me not having your app.

Murraycroexp · Jul 17, 2013

Oh. Two thumbs up in that case.

Murraycroexp · Jul 17, 2013

And a 10 character minimum on posts.

ATeam · Jul 17, 2013

Murraycroexp said:
Touché. I get it now. These aren't new loads to Sylectus. These are just loads that will be blasted out at bid/market rates instead of contracted or carrier rates.

Sylectus aside, I'm not sure I understand what you mean by bid/market rates and contracted or carrier rates. Before I comment further, can you help me understand the difference?

ATeam · Jul 17, 2013

paullud said:
Any one of the extreme surplus of brokers will be happy just to win the bid and worry about a truck later.

That is true of not just certain brokers but of certain carriers as well. When Diane and I were with FedEx Custom Critical, we received numerous calls from dispatchers saying the company had already committed to the load and they now need our help to cover it. Some of those committments may be contractural; like when a big shipper contracts with a carrier to cover its loads. But there were a lot of loads that dispatchers called us to cover that had no sense or feel of a regular customer attached.

There are big differences and subtle differences between carriers. One subtle difference we have noticed between Landstar and FedEx Custom Critical is that no agent has ever told us that he or she has already committed to the load and now needs our help to cover it.

It may very well be the case that the agent has committed, but not once has the suggestion, implication or statement been made that because the company committed to the load it is somehow our duty or ethical obligation to accept it, no matter how low the price or how undesirable the load. They ask instead, "How much do you need to cover this load?"

ATeam · Jul 17, 2013

Deville said:
These loads that FEDEX will be putting on Sylectus aren't true Expedite loads.

A lot of the loads FedEx Custom Critidcal puts on its own trucks are not true expedite loads either. We found this out when we moved to Landstar and covered the very same loads from the very same shippers picked up and delivered at the very same docks.

At Landstar, if a load picks up say at 10:00 a.m. today and delivers 400 miles away at noon tomorrow, you can do whatever you want and go wherever you want (within relevant protocols, of course) between the pick up and delivery. There is no contrived emergency attached to the freight. There is no computer telling you that you will be running late if you do not arrive at the delivery in 8.5 hours or less (400 miles / 47 mph). As long as you pick up and deliver on time (that is the shipper's and consignee's time, not some made-up time that is meaningless to the customers), everything is good.

ATeam · Jul 17, 2013

So the question does not get lost in the various excursions this thread has taken, let me ask again:

Why is FedEx Custom Critical doing this? What has changed in the industry or with FedEx Custom Critical to prompt this game-changing move?

Slo-Ride · Jul 17, 2013

Layout, What ya thinking? Could this subject have anything to do with our conversion in PM?
Kinda of a big coincidence dont ya think? This allmost comfirms the lil rumor??? Havnt heard anymore since we talked.

Murraycroexp · Jul 17, 2013

ATeam said:
Sylectus aside, I'm not sure I understand what you mean by bid/market rates and contracted or carrier rates. Before I comment further, can you help me understand the difference?

Keep in mind all this is just my opinion.

Bid/market - The rate levels that occur naturally by the increased and decreased "need or desire" to move a truck that is sitting. If the trucks are fat and happy this rate stays higher. If the trucks are sitting and starving this rate drops. The more trucks sitting, the more the market determines that the acceptable rate is lower. Kind of like tomatoes at the farmers market. Too many tomatoes? "A dime a dozen".

Contracted rates - Big Boy Britches Carrier goes to Wally Widget Wonderland and says "Let us handle all your logistic needs for $1.3, 1.65, 1.95 & 2.15. But please only use us for these great rates."

Carrier rates - Published, no secret handshake, COD rates. No discounts.

Murraycroexp · Jul 17, 2013

ATeam said:
So the question does not get lost in the various excursions this thread has taken, let me ask again:

Why is FedEx Custom Critical doing this? What has changed in the industry or with FedEx Custom Critical to prompt this game-changing move?

Dunno. But isn't money behind 90% of major decisions like this? Or the perception of someone paying more than they feel they should?
OR maybe they need more eyes on all the crappy loads to help cover them.

x06col · Jul 17, 2013

ATeam said:
So the question does not get lost in the various excursions this thread has taken, let me ask again:

Why is FedEx Custom Critical doing this? What has changed in the industry or with FedEx Custom Critical to prompt this game-changing move?

Actually, nothing has really changed. I just takes large cumbersome organizations a long time to be able to adapt to "new methods". Unlike my small company when I decided to work with what was known as GPS911 (Sylectus), that had around 300 trucks available. Most were small, nimble, responsive organizations where the "decision maker" was always on duty. It has long been a myth that organizations like FedEx could provide superior service each time every time compared to my Company. Not even close to fact. I was once a FedEx Contractor who started his own Company and have often wondered how anyone could come to the conclusion that the same operator, in the same truck would be able to provide a lesser quality service because of the name on the trucks door. So, actually, nothing has changed, except FedUp finally moved to this Century.

Murraycroexp · Jul 17, 2013

Slo-Ride said:
Layout, What ya thinking? Could this subject have anything to do with our conversion in PM?
Kinda of a big coincidence dont ya think? This allmost comfirms the lil rumor??? Havnt heard anymore since we talked.

My. Interest. Peaked.

Slo-Ride · Jul 17, 2013

Murraycroexp said:
My. Interest. Peaked.

Rumor Bro, Stickly rumor @ this time..

But with this thread it sounds like it may have been a good rumor. Interesting but not worth getting excited about yet. Will say it may be worth watching if your just a plain Jane straight truck going in and out of Canada.
If Layout wants to discuss it he can, (the Pm's) I dont work with the Fed so I dont want to put rumors to print.

davekc · Jul 17, 2013

On the loads they can't broker and can't be covered because of lack of availablility, that is likely what you will see on that site. It isn't a far leap to have a cheaper second source if they send a load to multiple trucks and it gets refused. Rather than barter they can send it out to the bargain haulers. They use to have some good freight on there but now....not so much.