fecc no longer negotiating rates

RichM

Veteran Expediter
Charter Member
I was told by a reliable competent source in C Relations that they had been contemplating this change in policy but the post was the catalyst that finally brought it on.
 

geo

Veteran Expediter
Charter Member
Retired Expediter
US Navy
when i was with fedexcc i made a post and later that day i rec a call from someone at fedexcc saying you should watch what you post
as we have people who read forum everyday and keep eye on things to see what is what
 

OntarioVanMan

Retired Expediter
Owner/Operator
Someone mentioned about uncovered loads...There is a load board for expedite only called "The Alliance" We are picking up alot of runs back to Canada from it.
 

davekc

Senior Moderator
Staff member
Fleet Owner
have great respect for most of the veterans here. But how anybody could think that any large corporate policy would change instantly over something some anonymous person wrote on an internet website is incomprehensible to anyone with the least amount of intelligence

Hi
It is mentioned in a previous post that Fedex had been reviewing this policy for some time. It was only a recent event from a poster that put on that last straw. That is my understanding from the above posts.
Davekc
owner
20 years
 

LDB

Veteran Expediter
Retired Expediter
>Someone mentioned about uncovered loads...There is a load
>board for expedite only called "The Alliance" We are picking
>up alot of runs back to Canada from it.

Where do we find information on this board? Thanks.

Leo
truck 4958

Support the entire Constitution, not just the parts you like.
 

merkurfan

Expert Expediter
I have to agree, I don't think ateams post was what started this with fedex. However, I think the mentality did. Fedex probably did have a HUGE problem with drivers always wanting more. It's human nature. If you know you can worm more money out of the company, your gonna do it. I've done it a few times but I have learned to pick my fights and save it for the runs that really don't cover expenses. While I have to agree that Ateams post in the hazmat topic was probably not wise, I doubt it lead to what happened.

I got lucky, got my hazmat on my birthday in October when my license came due. I am good for 4 years before I have to spend the bucks. By then I should know for sure if I want to keep it.


Happy trucking!
 

OntarioVanMan

Retired Expediter
Owner/Operator
LDB..I'll pump the "friendly' dispatchers and see what I can find. I got a load Atlanta to Windsor seemeds to be an unwanted load the day before X-Mas. go figure....
 

ATeam

Senior Member
Retired Expediter
>As with any company, they must cover their loads as
>profitably as they can. When the stated new policy begins to
>effect their revenue and their relationship with their
>customers, you will probably see some movement back to where
>they were at. I don't believe it would be in their best
>interest otherwise.
>Just my opinion regardless of the carrier.
>Davekc
>owner
>20 years

Exactly!
 

ATeam

Senior Member
Retired Expediter
>LDB and Trucker Matt. You guys are on the right track. This
>policy change was not something done over an internet post.
>I talked with contractor relations and they say the
>negotiating had gotten out of hand recently. Some drivers
>are never satisfied and try to get more money for every
>load. Especially when fedex is so busy and few trucks are
>available, they feel they have fedex over a barrel. I am
>told dispatch has no leeway to raise the rate offered, even
>if there are no trucks available. They will then just have
>to go to outside carriers.

That is true. It's also true that we didn't first get the idea to negotiate rates from other drivers. We got it when the DISPATCHERS offered to bump up rates or back up a poor load with a second better load. The first few weeks into our career, when presented with a marginal load offer and we either hesitated or turned it down, DISPATCHERS sometimes would - on their own initiative - sweeten the deal. That's how we learned it was OK to ask for more.

It's also the case that we didn't always get it. While our load-acceptance rate is high by fleet standards, it is not 100%. There have been numerous times when we asked for more on a marginal or unprofitable load offer, did not receive it, and turned down the load as a result.

Finally, we were not one of those driving teams that asked for more money with every single load offer. We have a target all-miles (deadhead + loaded) rate that we shoot for. MOST of the time, the load offers meet or exceed that rate. If they don't, we ask for more money. Sometimes we get it, sometimes we don't. Sometimes we'll accept a below-rate load, sometimes we won't - depending on a variety of additional circumstances.

Business has been good for us, and for the industry, since we started in August, 2003. While we have sometimes accepted below-rate loads, we have never once accepted an unprofitable load. Our industry research tells us the day may come when we have to accept unprofitable loads to minimize the losses that we'd otherwise incur by hauling no freight at all. We're prepared for that day, as all expediters should be.

There is no secret strategy in play here, nothing is going on that is unavailable to other drivers, no unfair play, no negotiations that require anyone to keep one's cards close to one's chest, no lessons utilized from the book, "How To Negotiate Anything" (which I have not read, just saw it in a bookstore once). In fact, the opposite is true.

It would be unfair for one driver to operate with inside information that enhances his or her profitability if that same information was not available to others. By sharing our load-acceptance strategy and negotiating tactics here, we are sharing tips that all drivers can hopefully benefit from. While some drivers may believe it's best to keep their secrets of profitability to themselves, we believe in sharing them. We believe the more all drivers know about running a successful business, the stronger the entire industry will be.

Dispatch made it clear to us that more money was often available than what is presented in the first offer, and/or that FedEx CC is willing to "overpay" a driver if necessary to get a load covered for VIP shippers. By that I mean paying higher-than-normal deadhead to convince a truck to move to the needed location. Having learned that fact, we altered our load acceptance strategy and load offer response behavior to maximize our profitability.

We keep no secrets from the dispatcher we're talking to at the time. We say yes or no. We clearly communicate our needs and any load-related concerns we may have at the time. We tell them why we turn down the loads we do.

Dispatch does what it does, we do what we do, and the chips fall accordingly. It's not personal. We don't take it as an insult when a poor load comes our way. We don't get mad if our request for more money is refused. We understand the Dispatcher we're talking to at the time has his or her own set of needs and goals to meet. We know FedEx CC dispatchers are trained to understand that we have business needs and goals too. These are business decisions. It's not about ego gratification or entitlement. It's about profitability.

If FedEx CC is able to make the new policy stick, it may benefit all drivers in the long run by motivating FedEx to be more selective in the loads they accept and/or to increase the standard rates they charge shippers or pay drivers. I see nothing in this policy will make drivers increasingly likely to accept poor loads. Refusal of poor loads will likely increase.

I believe - one man's opinion here - that as FedEx CC sees more money and loads go to the competition because drivers are turning the loads down, a light bulb will go on somewhere in the corporate hierarchy. They'll see the wisdom of paying drivers a profitable rate to haul marginal freight. If they don't, NO money will be made by the carrier on the marginal loads because the loads will not be moved at all and will instead have to be brokered to others.

On the other hand, if FedEx CC does shuffle cheap freight off to other carriers, it won't bother us in the least. We did not accept unprofitable loads before. There are more than enough profitable loads to keep us busy.
 

ATeam

Senior Member
Retired Expediter
>when i was with fedexcc i made a post and later that day i
>rec a call from someone at fedexcc saying you should watch
>what you post
>as we have people who read forum everyday and keep eye on
>things to see what is what

If that is true, that is OUTSTANDING news for all FedEx CC drivers active here and all people thinking about coming FedEx's way. It means EO serves as a direct "IN" to the powers that be at FedEx CC, that FedEx CC is paying attention, and that EVERYONE that has an opinion to share about why it is or is not attractive to contract with FedEx will be heard. Way to go, EO! Thank you for being not the drivers' voice, but an important means through which our voices can be heard!
 

dieseldiva

Veteran Expediter


It should be noted here that at FDCC orientation, the INSTRUCTOR tells you that "everything is negotiable".



OWNER/OPERATOR
DAY SHIFT DIVISION
QUEEN SH-T OF T-RD MOUNTAIN


Of all the things I've lost in my life, I think I miss my mind the most!!
 

geo

Veteran Expediter
Charter Member
Retired Expediter
US Navy
what is right web site address for the ailliance tried to find it and won't believe all thing that shown up
 

jal2430

Expert Expediter
there is a group of hotshot drivers in the chicago metro area,and 80% of our work,out of chicago, are loads refused by drivers in our biz. they,the carriers, come to us out of desparation, we charge our rates, they pay, but i have to believe they are charging their customers enough to make a profit, biz is biz! this is more or less a word of thanks! to think you have them over a barrel, to us, is to say the least,amusing!!! maybe you are the only fleet driver in the area, but that does not mean the only driver! there are groups and or companies like us everywhere. i guess my point is,you big time drivers w/the nice new rigs, paying gobbs of money, for that equip ment, are just for the show! next time you're at a truckstop or where ever you are, and you see a driver, in a junky piece of equipment running down the road, he or she probaly has the load you just refused! i've been doing turn down work for 12 years!! and it is going to get worse for you big time drivers, you guys remind me of barney fife, standing around the stops, admireing the nice,new shiny trucks while you complain about not enough miles, just makin ends meet,and God forebid going under. and afore mentioned the worsening will come from more organized groups,first expediteloads,now for the time being the alliance,by the way someone wanted info on the alliance,go to gps411.com, the alliance, right now is 180 hotshot companies, 3000 pcs of equipment, some new but alot like that driver you saw running down the road w/your turn down. there is talk of aleast two groups, larger than the alliance, both in the serious stages of planning, one in atl and the other in ewr. these are the people, that carriers are going to.God bless hotshot drivers long live expedite}>
 

Weave

Veteran Expediter
Charter Member
I know very well of the, "Alliance." fact is, if truck drivers or owners can't make a living at it, they are not going to do it, Alliance or not. The "Autoquick" thing for automotive freight was tried a long time ago, and worked like a shark in a goldfish bowl.

1. To operate trucks, you need trucks, and qualified truck drivers.

2. This "Alliance" of company managers, owners, directors, politicians, or whomever else will NOT change #1, EVER.

3. The rules for #1 get stricter and stricter by the day.

The way I see it, the future for qualified expediters and hotshots looks brighter with every new ruling that takes place.

Sure, there will always be garbage scows. But there is no way I see it to be possible that every truck on the road will become one.

-Weave-
 

Tennesseahawk

Veteran Expediter
If the trend of giving company freight to bottom feeders climbs, then all they'll have are the clunkers to drive for them. And that, in turn, will make customers very peeved. Also, I don't see how companies can lower their rates to the trucks and expect the same amount of pride in the company and trucks. In time, owners will decide not to get the new 2005 supercharged mach-87 thunderhorse, but instead get the 2001 freightshaker from bunk-o-junk.
I, for one, like the idea of bartering for a higher rate when I feel it's necessary. It's a win-win situation all around. I don't think "I have them over a barrel, I'll try to milk it." I take loads that have a purpose, whether to get to another area, get a first out, whatever. I weigh that cost against fuel and time and tell them what I can afford. If we can both afford it, wallah! So far I suck at it! :7

T-hawk
"What did Delaware? Idaho, Alaska." - Groucho Marx
 

geo

Veteran Expediter
Charter Member
Retired Expediter
US Navy
tried looking up web address and didn't get anything on gps411.com
thanks again
maybe missing something
 

Twmaster

Expert Expediter
I went there it had a login block for it's members. If you go to the upper right corner on that screen there is a link to the description of what the 'alliance' is.

--
Mike N

Faster than a speeding poulet.

Owner/Operator Big 'B'
Experienced
10 years auto transport
2 years local/distance expedite
Laurel, MD (Washington DC area)
 

jackdixon_2000

Veteran Expediter
Charter Member
For more info on gps411 try www.metroexpressinc.com. They utilize the technology and you can learn more. They say they are lookin for contractors but the only rate I saw was $1.00 a mile for tractors.I didn't see what they pay straight trucks. One interesting thing i saw was that customers can enter their zip code and pick a radius and the system will tell them where all the trucks in their area are, even if still loaded. I tried my zip code in Calif and found trucks in Red Bluff, Oakland and Reno,Nv. It then asks if you would like to contract that truck
 

Weave

Veteran Expediter
Charter Member
I VERY recently talked with a company that is an alliance member. I acted like I had a truck I wanted to lease on, and asked every question in my book. D unit rates with this place? 60% of $1.46 goes to the truck. .88 cents a loaded mile in other words. I politely ended the conversation, hung up the phone, and LAUGHED :7 :7 :7
Auto-Quick revisited?

-Weave-
 
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