FDX CC W/G

[PalletJack]

I don't post very often but I have been following this discussion about FDX W/G and reefer units. I have met individuals who have paid as much as $175.000 or more for a new White Glove truck fitted out with all of the accesories. I have to question this when a traditional new truck can be obtained for $90-100.00. To me it seems like you are working for the truck instead of yourself.

One important thing to think about before you purchase one of these vehicles is will the business be here in the future. When FDX bought Caliber originally Roberts Express management reported to the FDX CFO in Memphis. Custom Critical was considered an independent operating subsidary of FDX Corporation and for the most part business and policies remained the same. About 12-18 months Custom Critical was assigned to report to FDX Freight,the LTL carrier resulting from Viking and American freightways. LTL carriers think and operate in a totally different enviroment. They give heavy discounts as they have trailer space to fill. At the moment I don't think FDX Freight has reefer pups but that may be coming soon.

What I see happening is more and more Custom Critical freight being diverted to FDX Freight,CC makes the pickup and possibly the delivery but FDX Freight gets the long haul. So I would question at this time a major expenditure in new equipment. Perhaps a year from now things may be different and I would be more comfortable with a major purchase,right now I think the Custom Critical future is unknown.

Several other things to ponder,you run the risk of getting injured with inside deliveries etc and if you have several cargo claims you are out of W/Glove real fast, but the monster payment is still there.

 

[RichM]

Palletjack makes a very valid point. If things go south for you with your 175K truck where will you be. Investments in equipment can easily go away if the business you think may come your way doesn't because of factors you cannot forsee or control.

I spent several years on the corporate level and can say,decisons are made by a bunch of overpaid VP's that affect the rank and file but they are not notifed until the doors are closed. Sad commentary on American Business practices. so I just advise caution on major investments for operations that you really have no control over.

 

[ATeam]

I just advise caution on major investments for
>operations that you really have no control over.

Point well made. Whatever the cost of a truck may be, no one should buy one that lacks the reserves to carry the payments for an extended period of zero or no revenue.

 

[ATeam]

>What I see happening is more and more Custom Critical
>freight being diverted to FDX Freight,CC makes the pickup
>and possibly the delivery but FDX Freight gets the long
>haul. So I would question at this time a major expenditure
>in new equipment. Perhaps a year from now things may be
>different and I would be more comfortable with a major
>purchase,right now I think the Custom Critical future is
>unknown.

My wife and my experience with FedEx Freight leads us to the opposite conclusion. Kindly note that we're just one truck and the experience of others may differ. Since Custom Critical began reporting to FedEx Freight, we've been to FedEx Freight terminals more often, to deliver, pick up, and transfer freight.

The deliveries have been long runs we have picked up elsewhere. That freight went onto FedEx Freight trucks to be delivered locally during normal business hours.

The pickups have been freight that shippers could get to the local FedEx Freight terminal in normal business hours but needed it rushed to the consignee. Apparently, no one at the shipper was willing to wait after hours for Custom Critical to arrive. The division did not matter to them. Once the freignt was in FedEx hands, the shipper could go home and relax. FedEx Freight could not accomodate the straight-thru rush order so Custom Critical was called in.

We've also picked up rescue freight. Someone somewhere screwed up big time and freight in transit had to be plucked out of the stream. It may have come from another company or maybe from a FedEx error, we don't know. Whatever the cause, the now-hot freight was waiting for us at a FedEx Freight terminal. That run was from Salt Lake City to Great Falls Montana.

The transfers have been freight comming off Custom Critical solo driver trucks going onto ours. The solo drivers were out of hours. Custom Critical got the load as far as it could with the solo driver that picked it up and used us to get it the rest of the way. Custom Critical used the docks of it's sister company, FedEx Freight, to facilitate an easy, safe, and fast transfer of freight between two trucks.

My sense is that the very large FedEx Freight sales force is learning about Custom Critical and using it more and more. The synergies talked about in the FedEx annual report seem to be taking shape exactly as predicted.

Regardless of who reports to who, a fundamental distinction between divisions remains. Custom Critical dedicates an entire truck to a single load. FedEx Freight comingles freight from numerous shippers on one truck (trailer). Custom Critical's independent contractor fleet is set up to handle the expedited freight that no employee-based, company truck fleet could successfuly haul.

Another new development in FedEx that we enjoy is FedEx Kinko's. With our Custom Critical ID, we get a 30% discount on all goods and services Kinko's provides. Just don't wear your uniform when you go in. Customers will assume you work there and ask you for help getting the copy machine to work.

 

[JoeS]

We are in a W/G Reefer truck and can attest to the fact that more and more FECC freight is heading to FedEx Freight. Case in point:

FECC WG has a customer in Rochester, NY that had a weekly "D" Reefer load going to Mississippi. This load usually goes out on Thursdays for a Friday delivery. The pay is pretty good and what one would expect for a WG D Reefer load. We had done this run before and knew it was a regular run.

About a month ago we unloaded just outside of Rochester on Wednesday and then high-tailed it to within a few blocks of this customer figuring we would probably get the load. My assumptions were correct and we get the load. We head to the loading dock on Thursday and the guy that loaded us before asked me why we were there. I showed him the paperwork and he told me that my load and all subsequent loads should have been cancelled. FECC was not going to handle them anymore, FED EX Freight was! I knew that FED EX Freight has no reefer trailers and asked him about that. His response "Well our saleslady from FedEx gauranteed delivery to the consignee within 2 days." This is a high value reefer load that in my opinion could not sit on a trailer until Monday (especially during the hot summer months!). I asked about the temp-tales and he said the FedEx lady said they didnt need them so they were shipping without them!!!!! OMG I almost fainted.

I called dispatch with the information and they couldn't believe it either until they spoke to the shipping manager. I dont know what has happened since then but I bet a claim is on the horizon.

Expediting will not be what it is today in the next few years. The rates will continue to come down for regular and reefer loads, and cannibalism of freight from FEDEX sister companies will continue.

Best Regards,
JoeS

 

[poopookitty]

Well that gives greater explanation to my recent post string "what's the dealio?". We have also noticed an increase in loads to or from FDX FRGHT. Though they have been far from long runs. I'm not sure what most people consider long, but as a team we can run up to 1600 miles in a 24 hour period. There was a time when we did close to that with CC, but here lately it's just not happening enough. That is to say we are now getting 900 to 1200 mile loads a few times a month as apposed to a couple times a week. It will be interesting to see how this unfolds...

Have A Poopy Day!

 

[davekc]

Well that gives greater explanation to my recent post string "what's the dealio?". We have also noticed an increase in loads to or from FDX FRGHT. Though they have been far from long runs. I'm not sure what most people consider long, but as a team we can run up to 1600 miles in a 24 hour period. There was a time when we did close to that with CC, but here lately it's just not happening enough. That is to say we are now getting 900 to 1200 mile loads a few times a month as apposed to a couple times a week. It will be interesting to see how this unfolds...

900 to 1200 mile loads a few times a month? I can clearly see why you are struggling. Hopefully it will get better. For me personally, anything over your 1600 mile trip would be considered a longer run.
As I deal with Fedex agents for my own freight occassionally, you are correct, alot of CC freight is being diverted to these other divisions.
Why, because any instance that they (FDX Freight) slows down, they subsidize it with owner operator freight. When it is busy you win, when it slows down......well. Look at the EO classifieds.
You did answer your own question

Davekc