Changes at FECC

BigRed32771

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Anybody else heard the broadcast message that says we can now find our own loads, and the company will only keep 15% if the load/customer meets their qualifications? They say we no longer have to cover signs and get our own authority/insurance this way. Any thoughts?

BigRed32771
 

terryandrene

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The message also indicates that upon acceptance of the parties involved, the load may be taken. That could mean they just want to vet the shipper/consignee or otherwise determine if they might need you for something else later. It would be best to contact your coordinator and find out the specifics. I suspect we'll get a printed full explanation in the mail in a week or so.

Terry
 

Tennesseahawk

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Bout damn time!!! When I was with Roberts, we had to dh back from California from a load we took to Portland for .85/mi (I was rather new then). I tried talking to them about picking up LTL, but they wouldn't do it. They owe it to the drivers to be able to let themselves get out of an area if FECC can't get them anything.

That was just one more rule that constricted drivers. Glad to see it gone. It's still a shame you guys can't barter for prices.
 

raceman

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I have been able to get loads verywhere I have been including my current carrier. They do take a percentage of your income though. I think this is a neccessary thing. My God this running around empty everywhere some percentage of the time is of no good to drivers. I understand the carrier wants you empty so you can carry when they have something for you but with fuel costs and slow freight, this needs to change.

I ran to St. Louis last week and came all the way back home empty. Now in my current position I understand this abit more than I have when with other carriers but it sucks no matter what your deal.

I am hoping that next week I will be back to my dedciated and can stop worrying about this. I have been hit with the ole two week shut down. I have stayed busy with other runs but all that has made me want is more. LoL! Oh well I aint complaining. I got exactly what I asked for so I might as well shut up. I have yet to find that perfect job in this business.


Raceman
OTR O/O
 

davekc

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I would only think this would help their drivers. FedEx drivers do a tremendous amount of DH. With doing many forms of freight (small package, home delivery) I wonder how their tariff rates will allow drivers to run LTL or bid on freight. Alot of questions I would think? Most LTL and partials moves below those tariff rates.
Once drivers develop a relationship with brokers ect. it would be well worth their while.
The only ones to struggle might be the reefer trucks. There are loads but much is produce. They would have to be cleaned and sanitized prior to another load. That could take your profit out of these loads. Liftgate is pretty much dead weight for partials and LTL freight. A tag would give you more flexibility if you are doing enough of them.
Another item would be box size. You in most cases will need a minumum 22 foot box, ideally a 24.
There are exceptions, but you really need to know how to obtain smaller freight at decent rates. Load boards ect. usually don't deal in smaller LTL.
For the ones that can work it, and have the right equipment, this should be a welcome addition for them.

Davekc
owner
21 years
 

RichM

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Another change that came in the mail today is that new E units joining up will be paid a flat mileage rate for all miles. Right now it's only for new E units but the D fleet will probably get this incorporated down the line.
 

davekc

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That could be a good thing. Most will depend on where they set their rates. Depends also on how they calculate their milage.

Davekc
 

terryandrene

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The FedEx Custom Critical stats for 2002-2004 average annual revenue for an E unit was $2.01 per loaded mile and $1.31 for all miles. I sure hope the flat rate is at least the $1.31 plus the difference in FSC from that time frame until now.

The mileage calculations should not be a factor if they use the same criteria for the flat rate as they do for the customers HHG mileage + 5%. (unless the've changed that)

Terry
 

ATeam

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It's still a shame you guys can't barter for
>prices.

That is incorrect. The much ballyhooed negotation anouncemnet said DISPATCHERS can no longer negotiate prices. Dispatchers can and do get approval from higher-ups to raise the price of a load in certain cases.
 

Doggie Daddy

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A team wrote:


>That is incorrect. The much ballyhooed negotation
>anouncemnet said DISPATCHERS can no longer negotiate prices.
>Dispatchers can and do get approval from higher-ups to raise
>the price of a load in certain cases.


while that statement is true,the fact remains that it happens alot less now than before "someone" killed the golden goose. DD.
x(
 

tec1959

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Well I'd like to say that I saw alot changes when it went from Roberts to FECC,One of the BIGGEST changes was Third party billing loads (I hope I got that right) That bearly pay the truck enough to run the load for.It looks like to me that Fed Ex could and can do a much better job In finding loads that keeps FECC trucks busy,And also that pays enough to make it worth the Investment.Again Roberts was a much better company that treated drivers O/O's with respect,And most loads paid what they where worth,I guess with so many Expediter Company's around the rates will remain low for the most part...

Tec1959...
 

truckerbse2

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Have any of you actually tried this? The further explanation we have received is that it will be used to help driver's get out of difficult areas and to allow FDCC to aggressively pursue backhaul freight for you. Problem is they don't want to allow driver's to use it. I now have 3 friends who have tried to use this option. One tried to get out of FL, was told they didn't need trucks in the northeast where the load was delivering, one in OK, told needed to serve their customers first, and one in KS. The last one then got a load offer from Chicago which is where the backhaul was taking him and he would have been able to deliver the backhaul in time to pickup the other load. That was a claim of shortage of trucks. I don't think they should have advertised it so proudly if they weren't going to allow us to use it. Also, I believe it has something to do with the new flat rate. For those who have not called this will be $1.16 per mile plus a $.10 fuel surcharge and accessorial fees. Then if you own your own trailer you get another $.05. Maybe they are going to use backhauls to keep the newer contracts busy. I can say that a few months ago I received a call asking if I would like them to look for a backhaul load to get me out of Omaha. That surprised me because I've never waited long to get out of Omaha. I said no because typically backhauls are more headache than they are worth. Turned out well because I got a good load later that afternoon. Additionally someone said something about reefers and produce. If you have a reefer with FDCC it has a wooden floor in it, therefore, you cannot legally haul produce for exactly the reasons you mentioned. Even with a wash out bugs and bacteria are a problem. You can try for cheese or ice cream (if your reefer will hold a low enough temp for ice cream).
I'd love to hear if anyone has success with using the backhaul.
 

davekc

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Much different situation at Panther. I can haul from and to anywhere I want, regardless of whether they think it is a busy area.
How does a carrier expect you to obtain freight if it only travels to where they need trucks?
That is not a backhaul dept. That is a dept. that is giving you a sales pitch that you can't use.
Sounds like alot of bugs need to be worked out.

Davekc
 

JoeS

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My Opinion?

The ONLY reason that FEDEX CC made that policy change was because of the lawsuit being brought forward by the O/Os' at FedEx Ground. One of their primary complaints in the lawsuit was the O/Os' inability to use their own trucks to haul other freight beside FedEx's. This is just a ploy to eradicate a huge sticking point in the lawsuit.

Nothing, I mean nothing, will change. They will continue to put up barriers in order to make it such a PITA for one to find a back haul, that one will just say "Screw It, it's not worth the hassles".

Just My 2 cents.........

Besrt Regards,
JoeS
 

davekc

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Without a bonafide program, their drivers will continue to struggle at certain times. The common theme among recent posts is alot of excessive deadhead. Drivers will take a pounding especially because of the fuel and operating costs. With regards to their legal challenges, only time will tell what will happen. If they lose, every sector of fedex will take a hit.
Let me quess, where do you think the first place a hit will occur.
The places they have no investments to cover. Your revenue will be needed to cover the shortfalls they take on to buy additional equipment, benefits, back wages,fines and the list goes on.
Owner operators need to monitor this carefully.
Never assume too much.

Davekc
owner
21 years
 

JoeR

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If i remember correctly, To get your own load, you have to get it approved by your contract coordinator. Guess what, they only work from 8-5 (at best) M-F. If you deliver a load friday evening, you're outta luck because even if you find a load, your contract coordinator wont be back to work until Monday. Seems that if this was a legitimate plan, it would be availabe 7 days a week, and especially on the weekends.
 

truckerbse2

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Your CC will only tell you they will check with planning after you find a load to see if they will approve it. From past experience (and that was with Panther II) is that if you do that very often, book a load, then ask FDCC for approval, thjen end up turning it back, eventually these brokers will simply cjoose not to do business with FDCC drivers.
 

davekc

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With Fedex it is appearing that you need to make several calls to attempt to line up a load. Most decent loads go quickly so you don't have time to wait and see if they will let you run it. By the time you complete all these calls, the load is gone.
That is why it is necessary to have a dept. that specifically deals with backhauls. With Panther, one call and your done. You are setting the rate, not Panther. Having contract coordinators doing backhauls seems difficult, but time will tell on that one.
WIth regards to Panther, it is easier to book loads on approved brokers. The only time I have heard of a broker being refused is because he hasn't paid Panther. Pretty ligit reason since they are collecting the money.

Davekc
owner
21 years
 

S18wheeler

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Is that really true 1.16 flat rate a mile for E unit?? plus.10 fuel surcharge??Does that mean after 1 year when contract comes up ,they go to this per mile or find elsewhere??
 
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