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Carrier cutting rates

billg27

Veteran Expediter
Owner/Operator
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Just wait, the miles will increase as drivers leave for greener pastures. :))
 

westmicher

Veteran Expediter
Offline
If I've this right, I'll have to drive 50% more miles to make the same net, assuming the $0.40 for the truck must be paid first out of every miles. I don't think that's possible given daily mileage limitations imposed by the safety department and dispatching limitations, among others. Owner/operators could siphon value out of their truck to keep going a while, if its paid for. But when it's shot, they will be stuck with heavy payments. And what happens to those driving for owners when their owner decides to change the split to 45/20/35 in favor of the owner, so the owner can preserve his income??
 

davekc

Senior Moderator
Staff member
Fleet Owner
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We'e talking fleet owners, Dave. It could be two or three weeks before they even open them up to tote them to the bank.

Yes it could take a week or two. But it will happen.
 

davekc

Senior Moderator
Staff member
Fleet Owner
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If I've this right, I'll have to drive 50% more miles to make the same net, assuming the $0.40 for the truck must be paid first out of every miles. I don't think that's possible given daily mileage limitations imposed by the safety department and dispatching limitations, among others. Owner/operators could siphon value out of their truck to keep going a while, if its paid for. But when it's shot, they will be stuck with heavy payments. And what happens to those driving for owners when their owner decides to change the split to 45/20/35 in favor of the owner, so the owner can preserve his income??

I don't think E-1 wants you thinking that deep. That is not a characteristic of a "team player".
 

zorry

Veteran Expediter
Offline
Wonder where our three newer members are; ex-Raymond, the Kobe fan, and some other happy E-1 guy ?

Maybe running all the miles ?
Raymond trying to save up enough to buy his name back ?

Maybe they'll resurface on St Patty's day.
 

Steady Eddie

Veteran Expediter
Owner/Operator
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Wonder where our three newer members are; ex-Raymond, the Kobe fan, and some other happy E-1 guy ?

Maybe running all the miles ?
Raymond trying to save up enough to buy his name back ?

Maybe they'll resurface on St Patty's day.

Maybe they are giving each other a raise.
 

westmicher

Veteran Expediter
Offline
Talked to three other Sprinter owners this week. Their comments were:

Sprinter Team: I'm cutting my cargo area back to 9' or so. If we're not getting paid for the third skid anymore, we can use the personal space. The new rate sucks but we are probably staying.

Sprinter Solo: I'm not getting enough miles so I'm on my way out. I'm going bankrupt with false promises.

Sprinter Team: We don't mind the change. At least there will be no more $0.70 runs. That's about all we got. And now we get paid deadhead. Is there any other company that pays more per mile? (No kidding- they actually asked that!)

As for me, the new bus, which can take 4 skids and 4,000 lbs. legally (up to 6,500 lbs. actually) cannot stay @ an $0.80 per mile carrier. It just doesn't make a good business decision to stay.
 

ScoobyMagee

Expert Expediter
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It is a sad time for sprinter teams at E-1. I hope the look at what they are doing to the fleet. As a child I new a broken promise was just a lie, I still fell the same, alot of years alot of promises!!! SAD
 

purgoose10

Veteran Expediter
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I agree with what everyones saying and this is just my thought. I think E1 is looking at the overall market and thinking as slow as it is right now no one will leave because nobody else is offering enough more to justify a move. Also it's just a couple of weeks before the start of the second quarter and they are looking at freight increases which will get most running again. As was stated in an earlier post a lot don't know how much it costs to run per mile and live check to check, so if their running then they are somewhat happier. If that's possible. I don't know what they are running for Sprinter and Maxx rates but if it's anything like 70c a mile than they are crazy.
 

zorry

Veteran Expediter
Offline
Can an E-1 with some spare time figure this week out.
1) 100 m dh. 450 loaded

2) 30 m dh. 750 loaded

3) 250 m dh. 900 loaded

4). 100 m dh. 550 loaded

480 dh. 2650 loaded

For a D unit dry. No accessiorials.
 

westmicher

Veteran Expediter
Offline
Can an E-1 with some spare time figure this week out.
1) 100 m dh. 450 loaded

2) 30 m dh. 750 loaded

3) 250 m dh. 900 loaded

4). 100 m dh. 550 loaded

480 dh. 2650 loaded

For a D unit dry. No accessiorials.

The correct answer is that no one can answer this yet. When asked if the straight truck premium for over 12,500 lbs capacity and/or the sprinter premium for over 3,250 lbs capacity was gone? The answer was "I think they are gone but those issues were not addressed specifically in the rate change decision, but no mention of them in the new rates suggests they are gone." (by an unnamed official at E-1 who is in the position to know but I do not identify by request). I personally wouldn't count on any rate/capacity premiums unless/until they announce them.
 

zorry

Veteran Expediter
Offline
The answer I'm looking for wouldn't include any premiums.

Purgoose said nobody is offering enough reason to leave.

This scenario works out to $4131 to the truck at Fedex's lowest rate program. No premiums. And most don't do it because they can do better at normal rates.

I was just curious what other carriers ( non-percentage programs ) would offer for the same week.
The above includes FSC, but nothing else.

Just curious how good/bad this is in the real world.
 

westmicher

Veteran Expediter
Offline
If I have it right and no D unit premiums were paid, Express-1 would GROSS you a whopping $3,208 for that week, minus QualComm minus insurance minua occ/acc, etc. You'd have about a $3,000 check.
 

zorry

Veteran Expediter
Offline
You'd have similar Qualcomm fees,etc at Fedex.
The starting check would be $900 larger on a not so great week.

I can listen to a lot of Critical Checkout Messages for $900 or more per week.

Would be curious how a Panther check would compare.

And even though Fedex has minor IT problems now and again, correct me if I'm wrong, I DO NOT remember any payroll issues.
I like my payroll correct and on time.
 

OntarioVanMan

Retired Expediter
Owner/Operator
Offline
The correct answer is that no one can answer this yet. When asked if the straight truck premium for over 12,500 lbs capacity and/or the sprinter premium for over 3,250 lbs capacity was gone? The answer was "I think they are gone but those issues were not addressed specifically in the rate change decision, but no mention of them in the new rates suggests they are gone." (by an unnamed official at E-1 who is in the position to know but I do not identify by request). I personally wouldn't count on any rate/capacity premiums unless/until they announce them.

first of all when did they have a 3250 lb sprinter rule?....Used to be 2,000LBs was sprinter rate...when I was there almost 3 years ago....and since almost NO sprinter single wheel can haul 3250 legally and E1 does require a scale ticket...
 
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