Fedx considering option of a flat rate for strt and tt

OntarioVanMan

Retired Expediter
Owner/Operator
So Dale, it seems this move will also happen to the regional operators who take care of 'regular' customers like Pittsburgh paint and LG, right?

define a "regular' customer?

How long do you think the Feds will stay with a 2 tier pricing system? Flat rate is coming...IMO
 

greg334

Veteran Expediter
The difference will be that these folk will know more of what they're doing, instead of waiting on the traditional expedite freight. They will be mostly for the customers who want Fedex to guarantee a truck for X amount of runs a day (local) or so many days a week. More scheduled, but they still want Fedexcc. For instance, some have already seen daycabs running around Atlanta. Im sure New York City will be another... get a semi dedicated driver who doesnt mind NYC.

I don't know about the day cabs thing, they had them for years.

BUT I do know there is a lot of the freight that hits the "prefered partners" through email - they want to keep it in-house.

There is a lot more to it than what Dale mentions - it is all top secret.
 

OntarioVanMan

Retired Expediter
Owner/Operator
LoL pellgrn, I still get people at docks asking me about Fedup :) .

Nah, the new flat rate trial is not a secret, but you know how rumor mills are. The difference will be that these folk will know more of what they're doing, instead of waiting on the traditional expedite freight. They will be mostly for the customers who want Fedex to guarantee a truck for X amount of runs a day (local) or so many days a week. More scheduled, but they still want Fedexcc. For instance, some have already seen daycabs running around Atlanta. Im sure New York City will be another... get a semi dedicated driver who doesnt mind NYC.

Should not affect regular expedite runs much, just those hard to cover ones.


Dale

Oh why not make it dedicated Ground then? oh wait...Unionization is coming to them....so go with dedicated CC and screw owners over this way instead...
 

greg334

Veteran Expediter
Actually it should be Freight, which is fighting the union hard and CC is part of.

I think they already made some moves to isolate the contractors from the issues at hand.

I don't hear the "many faces, common goals" thing with any CC stuff.
 

Scuba

Veteran Expediter
There are freight haulers paying that rate and you get 2500 to 3000 miles a week which most solo tt's dont get in expediting. You would be better off becoming a freight hauler
 

aileron

Expert Expediter
There are freight haulers paying that rate and you get 2500 to 3000 miles a week which most solo tt's dont get in expediting. You would be better off becoming a freight hauler

To be honest, I don't think there are any freight haulers paying $1.30 per mile loaded or empty. The question is: are they going to keep these trucks busy enough without stealing loads from the percentage trucks?
 

davekc

Senior Moderator
Staff member
Fleet Owner
To be honest, I don't think there are any freight haulers paying $1.30 per mile loaded or empty. The question is: are they going to keep these trucks busy enough without stealing loads from the percentage trucks?

Not a specific company issue, but if a carrier takes on a bunch of budget freight and then can't move it, they will have to rob from the productive loads to get them covered. Unless they have dollars falling from the trees, I would say the options are very limited.
 

Deville

Not a Member
The way Fed has been offering loads the past 15 months at least on C loads they are coming in at .86 per mile which is B rate. I have a D unit & I haven;t seen anything heavier Than 2500 pounds in a while.

As far as moving to a CEVA model, that would mean they would have to have terminals, I can't see them doing that unless were gonna merge operations with freight. I wouldn't mind a CEVA model myself, I run pretty local. A bunch of guys I know in the NJ/NY area got rid of there D units with sleepers & went to C unit Day cabs. I plan on doing that myself when i'm ready to buy another truck.

I just hope once the economy get's better pricing rebounds. I've made slightly more money this year than I did last year at this time, HOWEVER the catch is that i've run 30% more loads this year than last, so I'm actually losing money with the added cost's of fuel, tolls etc....

Technically i'm doing more work & making less money.
 

Deville

Not a Member
To be honest, I don't think there are any freight haulers paying $1.30 per mile loaded or empty. The question is: are they going to keep these trucks busy enough without stealing loads from the percentage trucks?

That's always been a question with White Glove, there have been times i've lost loads to a white love truck & it was a surface load. It does happen. When Pfizer was using singles & theyw ere really busy 50% of my runs were Pfizer loads, than all hell broke lose with hi-jackings, down sizing & what not & all the singles got pushed aside for white glove.

I'm not even sure how many loads Pfizer is giving us anymore. I haven't been there in a couple of years, maybe 3.
 

OntarioVanMan

Retired Expediter
Owner/Operator
The way Fed has been offering loads the past 15 months at least on C loads they are coming in at .86 per mile which is B rate. I have a D unit & I haven;t seen anything heavier Than 2500 pounds in a while.

As far as moving to a CEVA model, that would mean they would have to have terminals, I can't see them doing that unless were gonna merge operations with freight. I wouldn't mind a CEVA model myself, I run pretty local. A bunch of guys I know in the NJ/NY area got rid of there D units with sleepers & went to C unit Day cabs. I plan on doing that myself when i'm ready to buy another truck.

I just hope once the economy get's better pricing rebounds. I've made slightly more money this year than I did last year at this time, HOWEVER the catch is that i've run 30% more loads this year than last, so I'm actually losing money with the added cost's of fuel, tolls etc....

Technically i'm doing more work & making less money.

yup..that was my point about my carrier....working more for less....seems to be the pattern this year...
 

greg334

Veteran Expediter
I think that's the pattern for most.

CC belongs to the Freight group, if I remember right so integration may be really easy but doubtful. I think the Ceva model goes against the corporate model which CC seems to be following.

As for Pfizer, there a lot more to the story and FedEx nor Pfizer will say.
 

Special K

Expert Expediter
We've been off EO for a while, or I'd have seen this before and said something. First, FedExCC lost the Pfizer account, quite a while ago, and Express-1 got it. We've done one of those loads since we switched.
I fail to see what people think is so bad about flat rate. When we changed companies, we went to flat rate. I keep seeing references to the "low rates" at E-1, but we're making at least as much now as we ever did at FedEx doing White Glove - without departure calls, "critical departure" messages, running-late inquiries, electronic logging, or even - GASP! - "bedcards" (macro 8). E-1 doesn't even HAVE a Qualcomm macro to tell them where we are; if they want to know, they "ping" the QC and don't bother us. By our 4th wk, after getting through the first "learning curve" weeks, we grossed $6621 in 7 days, with less than 10% deadhead. Yes, we drive more miles. But that's not a negative for us. The reason we like this business is that we both LOVE to drive. Sitting and waiting 2 or 3 days for a load is not what we consider a Good Thing.
So don't get too worried about something that may not happen, and if it does, may be an improvement. We've not had one single "junk" load offer in the month we've been "away".
BE SAFE!! Marda
 

OntarioVanMan

Retired Expediter
Owner/Operator
Are you with Judd or Expediter Services?
The most a truck can make at E-1 is about $1.49 a loaded mile....$1.20 plus .29 T &T rate....not including any DH pay...

You saying the WG rate is at or lower then that, on average?
 

OntarioVanMan

Retired Expediter
Owner/Operator
Special K, the problem is no one carrier has any exclusive contract with Pfizer - period.

No but E-1 is their "preferred" carrier now....and now reefer trucks are appearing at E-1...which means "maybe" less work for the Feds WG units..
 

eggd1ver

Seasoned Expediter
thanks dreamer,i should have pmed you or many of the other fedx people on this site.i was gonna start the ups/fedx/or insert a name is buying panther with them going public and all and really waste very ones time.that's a joke of course,however back about 3-4 yrs ago there was quite a buzz.my favorite line was ups is gonna buy fedx and form fedup.

great post lol!!!!!!!!!

Rich & ida hope everyone is enjoying the heat so will be cold!!!!!!!!!!:d
 
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