Flat rate???

zorry

Veteran Expediter
Tough on solos unless you routinely run runs where this may be a bump up.
On the open board..... ???
 

rymilburn

Active Expediter
Did anyone notice, or maybe it's just me, but the classifieds section just got flooded with str8's after FedEx announced the flare rate.
 

cannedmeat27

Expert Expediter
Actually, from what I hear, TK is developing a special refer for w/g exclusive to FDCC. This is so you can buy one at any dealership, no fine tuning needed, no parking in green for t-val testing, hopefully to make life easier and yada yada yada.

I just hope the tk refers hold up better than my tk APU. The engine is like gold, everything else is like pewter. It's constantly needing something done to it.

That would be awesome. I wonder if they could do that for us br unit drivers.
 

zorry

Veteran Expediter
Before they develop something so advanced, maybe they should develop one that can pass TVal testing the first time..
I think they are working on one now that sometimes passes on the second try.

If I were a Mod I'd tell myself to get back on topic.
If any TK has passed on the first try, maybe they should start a thread stating so.
I heard a rumor that one did.
 
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zorry

Veteran Expediter
I've heard of many TK's failing twice, some three times.
We're talking new, at least when they started.
I'm sure a Carrier will fail now and then..I have never heard of a new carrier failing.
I don't hang around Green, and having a Carrier I seldom talk to TVal girls.
 

jamom123

Expert Expediter
Tough on solos unless you routinely run runs where this may be a bump up.
On the open board..... ???

I've compared a few loads that they have sent me on the percentage plan versus the flat rate plan and some do pay better. The thing is starting June 1st whether your on percentage or flat rate there's no negotiating. So do you think it would be better to go ahead and sign up for flat rate?

Sent from my SCH-I510 using EO Forums mobile app
 

zorry

Veteran Expediter
Figure out all your numbers.
Do a spreadsheet.
Network.

Then flip a coin. :)
It really depends on what you run and how they compare.
Only you can figure it out for your style/ geographical location.

Great question.
 

JoeS

Veteran Expediter
Owner/Operator
I've compared a few loads that they have sent me on the percentage plan versus the flat rate plan and some do pay better. The thing is starting June 1st whether your on percentage or flat rate there's no negotiating. So do you think it would be better to go ahead and sign up for flat rate?

Sent from my SCH-I510 using EO Forums mobile app

IMHO, "a few loads" doesn't provide enough information to make an intelligent decision. I would stay with the devil I know and run comparisons on the loads for the duration of my current contract.
That way, I can better prepare for what's ahead.
 

dodrh2000

Rookie Expediter
Took a load this evening for 1.60 all miles. Deadhead from KC to OK City. Loaded miles from OK City to Wichita Falls. Using flat rate scale it would have come to 1.12 per mile.

I do not see how FedEx will cover this load come June unless they give it to a percentage driver.
 

layoutshooter

Veteran Expediter
Retired Expediter
Took a load this evening for 1.60 all miles. Deadhead from KC to OK City. Loaded miles from OK City to Wichita Falls. Using flat rate scale it would have come to 1.12 per mile.

I do not see how FedEx will cover this load come June unless they give it to a percentage driver.

$1.60 per mile is far too low. That would have been considered a pretty good load 8 years ago, it was really bad with the costs we have to deal with today.
 

TeamCaffee

Administrator
Staff member
Owner/Operator
We are a dry box one truck owner operator and at $1.60 all miles we can make money and put money away. If we only do one load a week at $1.60 that is when we have a problem.

On each load that we have done I have converted the figures to what the flat rate would pay for White Glove $1.30 plus FSC and some loads would have paid better some worse. If we could keep moving steadily I believe we would be fine as the pay levels out.

Each of us had our own sets of bills and needs and as such we each have our own set income we need to stay profitable. As a one truck O/O we need less I believe then a fleet owner does to stay in the black. Look outside of Expediting and see what a T/T makes leased to Prime, USX, England, HVH, and the list goes on of T/T making less then a dollar a mile before FSC. Do they deliver the service we do "No" but they continue to make money.

There is no doubt in my mind that many trucks in surface are going to do well on the flat rate program, make money, and continue to enjoy having their pets with them. The flat rate program does not rule us out of going back to surface in the future so that we can once again travel with a dog. Our life style right now is to hectic and it would not be fair to put a dog in a kennel as often as we would need to.
 

TeamCaffee

Administrator
Staff member
Owner/Operator
Took a load this evening for 1.60 all miles. Deadhead from KC to OK City. Loaded miles from OK City to Wichita Falls. Using flat rate scale it would have come to 1.12 per mile.

I do not see how FedEx will cover this load come June unless they give it to a percentage driver.

In this situation the amount of dead head for a flat rate truck would have meant turning down the load. This is the problem I see when FXCC did not make the Flat Rate all miles.

If FXCC will cover this load they are going to have to find a closer truck to the pickup, there will be no choice, or lose the customer.
 

LDB

Veteran Expediter
Retired Expediter
Each load has to be judged on it's own and each truck's criteria is different. At $1.60 all miles, if it's an offer given in the evening for that same evening, it has potential for many since the odds of another offer aren't too great. If it's offered many hours in advance less so since it precludes getting any other offer for an earlier and/or better job. With no truck note $1.60 is a workable number while $1.12 wouldn't be unless perhaps it was time to go home and that covered a lot of the miles toward home. Otherwise it's going to go begging.

And what happens when more and more loads are being covered by Acme Widgets and Expediting with their ratty trucks and slovenly drivers? How is that going to impress customers? How is that going to uphold the brand? Penny wise and pound foolish.
 

layoutshooter

Veteran Expediter
Retired Expediter
$1.60 including FSC, tolls etc is not $1.60 per mile.

IF a flat rate is to work it has to, one, include ALL miles, from the instant the load is taken. It has to based on REAL miles, not zip to zip, and cannot include the FSC, tolls or any other extras.

$1.60 under those conditions MIGHT be a good rate, but I have not sat and figured it up with things like ROI, maintenance, wages, medical, savings, retirement etc etc etc. In all likely hood that number is a bit low. Even figuring a really low wage per driver, of $25K per year, that would be hard to clear.

What is all boils down to is that EVERY expense we have is going up and rates are not keeping pace. Working the same, or more, for less money and less disposable income makes no sense.
 

GandJ

Active Expediter
Interesting points by many.

Is anyone seeing what looks like " new" customers. Load board freight that is not a FDCC customer but freight picked up online?

The freight is not really needing the FDCC standards but just needs to be picked up and delivered......

"Customers" wouldn't be lost because they aren't really a FDCC customer. Could be but....
 

zorry

Veteran Expediter
Not counting going home, or somewhere you have to be, does anyone have a loaded rate and an empty rate ?

IF all miles paid the same, the long dh loads may still be unprofitable.
The difference is they would be unprofitable for Green, not us.
Unprofitable for those setting the rates and booking the loads. Not for us at the mercy of those booking the loads and setting the rates.
 

dodrh2000

Rookie Expediter
Took a load this evening for 1.60 all miles. Deadhead from KC to OK City. Loaded miles from OK City to Wichita Falls. Using flat rate scale it would have come to 1.12 per mile.

I do not see how FedEx will cover this load come June unless they give it to a percentage driver.


My post was not about what I got for this load. It was to compare to the new flat rate. As to 1.60 I can afford to do this because my truck is nearly paid for. And yes it was an evening run.
 
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