Re: West Coast Runs Reconsidered

[chefdennis]

Phil, I hope you are ok with me commenting on this thrad from the FDCC forum...I have to 1st thank yoi for your frank posting in this thread...while it doesn't affect me , it does show what others are going thrugh in our industry and i do appreciate your views.

I also opened the link to you blog and read the disappointment that you and diane now feel for the loss of what was once a sense of pride in working as parteners with FDCC..and I along seen the post from Aileron where he feeling that same loss. In reading that, I was struck as to why i enjoy working with John Elliott and Load 1...it is that same sense of pride that you once felt..I totally understand how you feel at the loss...

I don't often wish people good luck..i am of the mind that we create our own luck and why in business..but in reading your thread and seeing what is happening. it is Good Luck that I wish for you and Diane...hoefully with FDCC if that is where you stay, but also with whatever carrier you do move to if that happens....

 

[moose]

O'h boy , Dennis , you have no idea what you just did ...LoL...

where do i start ,
well i think that the bubble boy mentality is finely sucking in.
for everyone hoe used to say 'it will not effect me'
(like the OP BTW)
well, it will, and it did, weather you OR your carrier will take the hit for this,
one cannot simply run away from a Gov. hoe is in business to take the small business owners out of business.

since it seams like, so many of us, (and i'm not necessarily talking about members of EO), are simply digging their head deep in the sand, let me simply tell it as it is.
there are MANY industry publications to support this, and it WILL effect the way all of us are doing business.

her's what happened in Southern Cal.
only a short time ago, the gov. , via it's CARB arm,over-regulated most O/O in southern Cal., simply forcing them to look for new ventures.
this have greatly effected the ones hoe used to haul locally .
those O/O are driving very old yet well maintained trucks,and can run cheap... very cheap.
they for the most part speak Spanish.
those drivers have flooded the market, and are now available to haul any SW freight .
most carriers hoe do business in southern Cal. are now deploy those trucks regional.
and then national, via other trucks, if needed.
cope that with a rail service hoe can now move freight at twice the capacity, and half the time, and the SW freight market simply dried out.
as a result, most American O/O hoe used to relay on that freight, are now servicing other markets.
in the last 8 months you can see MANY top quality independent O/O competing for the freight on other markets.
Expedite included.
those are some Sirius competitors ,hoe can out last most drivers.
they know how to run a business, how to keep the box full, how to find freight, negotiate, and how to steal and retain costumers.
they are good...very good, and they are here to stay.
this is not going to be a good time to be an O/O leased on to a carrier...

what you WILL see is the rates going up, for those hoe know how to serve, with most of the trucking industry struggling to even see those rates.
as a direct result, you will see the good old drivers turnover rate increase, accompany with a cry for drivers shortage.
that shortage is virtual, and is the only hope for those hoe simply cannot compete .
you will also see new trucks sells hitting new ceilings, for the same rezones.

what you can do about this.
business wise, it's almost a given : keep your cheese, get out of debt, and communicate with the ones placing the freight in your box.
politically ... 2 things.
JOIN OOIDA !
keep you representative informed.
2 years ago NONE of us did anything to help those poor Cal. O/O, so we all cannot complain.
but we can protect our individual future, and we do need to be informed.

i do not remember hoe said this, but : ' when the wheel is spinning to the other side, someone will still needs to move that expedite freight, and someone is going to make a killing doing so,
is that someone's going to be you ? '
good luck !

 

[Monty]

Well, chef, you didn't share very much, all I gaterhed is someone at FCCC is unhappy with going to California?

 

[MYGIA]

I was wondering when someone was going to “hijack” the tread out of the FedEx site. To be honest, I am seriously surprised it took this long.

 

[chefdennis]

LOL Nota!! Yea I only commented my point on Phils comments...I figured anyone that wanted to know what was going on would just scroll down and open the Fed Ex Carrier section and open the link...but here is the link for you to read:

http://www.expeditersonline.com/forum/fedex-custom-critical/47564-west-coast-runs-reconsidered.html

 

[greg334]

Its amazing. Just Amazinnnnggg.

Moose, the market didn't dry up, FedEx is making adjustments to the way they operate in the west and some think it is unfair that they are not loaded before a company truck is.

With that said, the market is still viable for those who actually want to run - just not so much for FedEx.

I know of one owner who has four trucks out there running up and down the coast and as far east as Texas and Montana, they have not stopped much to enjoy the gold coast. There is another owner who is selling his trucks because of his wife's health and he had two trucks exclusive to the west coast. ALL of them have been making money but they are not with FedEx.

IT all depends on your company and how they want to capture the revenue.

When I was out there for 12 weeks, FedEx didn't load me as they should have, they depended on their own fleet to provide the "expedited services" SO nothing has changed. A few around here seem to think that because they are special, they should be first in line but they also feel CC is the more important of the divisions.

 

[Turtle]

One thing to always keep in mind is that the carrier doesn't do anything unless it benefits the carrier, and their field of view is totally focused on what benefits the carrier. Anything or anyone outside that field of view is irrelevant. Having pride in an association with a particular carrier is all well and good, but it can only go as far as the carrier's goals and your goals are copasetic with each other, and the carrier's goals just happen to satisfy your goals. All the pride in the world will disappear once the realization sets in that you are a tool for the carrier to use to their benefit, nothing more. The danger of having pride in that association is that it can turn to feelings of betrayal and depression when the reality sets in and things change.

BigRed more or less nailed it with:

Is this the beginning of the end of FDCC as an expedite carrier? What role will there be for vans and straight trucks carrying exclusive use in the FedEx Freight universe, beyond "final mile" operations? Is there a connection between these changes and the switch from "blue" to "red?"

I'm not sure if it's the beginning of the end, as it's more of an ever-evolving and changing situation that is now beginning to coalesce where it can be recognized for what it is.

The switch from "blue" to "red" is an important one. It was officially stated the reason for doing so is because customers do not differentiate between the various colors and therefore do not see any difference between the services offered with each color. But, is that genuinely accurate?

It's the classic chicken and the egg thing. FedEx is arguably one of the most successful companies at marketing their brand and services. Do the customers not see a difference in colors and services because FedEx has failed in their marketing attempts, or is it because their marketing attempts are performing precisely as expected, where there is no difference at all, and that goal is finally about to be realized and the changing of the colors is just one more step towards the goal?

I'm not ashamed in the least of who I am leased on to, but I have no particular pride in the association, either, because I know full well that they are in is for them, just as I'm in this for me. I have no illusions of pride of association to think I am somehow near the top of the food chain in a dog-eat-dog industry. I strongly suggest people re-think just how much pride they do have in their carrier associations, to not let it color your judgment. Keep in perspective.

 

[davekc]

Starting to look like the Phil forum over there. I don't know what the fuss is about. It was posted here on EO a year ago about reefer trailers being parked in Memphis. What did they think those were for?

 

[Turtle]

Starting to look like the Phil forum over there. I don't know what the fuss is about. It was posted here on EO a year ago about reefer trailers being parked in Memphis. What did they think those were for?

Yeah. That's what blind loyalty and misplaced pride can get you, where you don't see clearly what is happening around you.

One call for all your shipping needs, call-takers steering customers to cheaper alternatives, dispatching offers to multiple trucks at once, self-powered refer shipping containers... the Memphis refers were about Step 37 in a 90-Step transition to synergistic homogeneity.

 

[davekc]

Yeah. That's what blind loyalty and misplaced pride can get you, where you don't see clearly what is happening around you.

One call for all your shipping needs, call-takers steering customers to cheaper alternatives, dispatching offers to multiple trucks at once, self-powered refer shipping containers... the Memphis refers were about Step 37 in a 90-Step transition to synergistic homogeneity.

It is amazing sometimes how little some know about the carriers in which they are leased. It does appear though that some are starting to look over the rims of those rose colored glasses.

 

[layoutshooter]

It is amazing sometimes how little some know about the carriers in which they are leased. It does appear though that some are starting to look over the rims of those rose colored glasses.

No rose colored glasses. We have always looked at "other options". When I have asked other carriers about rates I could expect none were able to say that they could meet what I made now. Will that change? Most likely. Nothing is static.

Part, not all, of what FDCC is doing is getting their rates down to what other carriers are charging. It can reach a point where privately owned reefers will not be able to survive with the present business idea.

I will continue to ask "other carriers" from time to time as to what is going on with them. If and when the time comes that I feel we can do better, we will change.

I owe FDCC nothing more than a good job, the best I can do, as long as I am leased to them. If and when we change, that new carrier will get the same.

Maybe someday we will see a "new" idea. Like a privately owned fleet of reefer trucks, a pool of trucks so to speak, that will service a variety of carriers.

Everything is in flux. The need for reefer trucks will always be here. How they are used will change with the times.

 

[davekc]

As with anything, you got to keep an open mind.

 

[layoutshooter]

As with anything, you got to keep an open mind.

As I have said in many other threads, there is only one thing in this world that never changes, that is the fact that every thing is always changing.

All it will take for us to move is more money. We are not in this for our health, just our lively hood. You could consider us "free agents". Open to the highest bidder. It makes little difference what decals are on the side of our truck.

All carriers should be paying attention to that. IF they want to keep good contractors they will. IF they want to attract good contractors, they will. If they don't, they will lose them. Simple.

 

[RETIDEPXE]

"Having pride in an association with a particular carrier is all well and good"

Could it be this is one contractor's way of trying to make the Fed take note that he's mad as hell and won't take it anymore (which is good) but then trying to place some misquided guilt trip on the Fed for what is happenning as if the Fed gives a hoot about it's contractor's 5 some odd years of pride haulin loads under their name. I'm here to tell you as well, Turtle is right, profit before anything else. It's a tough ole world out there and common business practices rule, not how someone feels or thinks they should be treated. It's all about the benjimens, the bottum line, the need to shoot for higher profit goals (the company's, not the driver's) into the future.

Like the Mexico truck border crossing. Trying to put the guilt on congress for possibly OK'ing "unsafe" Mexican trucks into the US is just an attempt to try and put the guilt on those that are for it. Let's tell it like it is. The reality is, if the program is OK'd by Washington, and the Mexican companies start buying and placing new US only domiciled trucks in service with Mexican drivers that only travel US roads hauling freight that the Mexican border "crossing agents" bring over, the real crux of the matter is selling out our industry to Mexico's tarrif threats at the cost of our livelyhood.....and to the benefit of the large corporations that have plants in Mexico who lobby Washington for the bottum line for the shareholders.

Come to think of it, I'm mad has hell too and I won't take it anymore either! Let's pull out of Washington and wherever else doesn't deserve our services....yeah, that'll go over real well.....*sigh*

I do hope the best for Phil and Diane. When we started 4 yrs. ago, he gave us sound personal advice for which I appreciate. Best of luck to you and your's!

 

[ATeam]

One thing to always keep in mind is that the carrier doesn't do anything unless it benefits the carrier, and their field of view is totally focused on what benefits the carrier. Anything or anyone outside that field of view is irrelevant. Having pride in an association with a particular carrier is all well and good, but it can only go as far as the carrier's goals and your goals are copasetic with each other, and the carrier's goals just happen to satisfy your goals. All the pride in the world will disappear once the realization sets in that you are a tool for the carrier to use to their benefit, nothing more. The danger of having pride in that association is that it can turn to feelings of betrayal and depression when the reality sets in and things change.

You state it well.

Kindly note that for nearly eight years Diane and I have had great pride in our carrier and in the work we do. But for those same eight years, the money was good. Had the good money not been there, we would not have been there either.

Just this week, for the first time ever, we found ourselves stuck out west, not because of slow freight, but because new, company-owned equipment is run in direct competiton to us. While that prompted an emotional response, our focus on the money remains crystal clear.

You will see in my writing about this that an action plan was developed almost instantly. That was possible because, notwithstanding the pride we had in FedEx Custom Critical, we have kept our eyes open and a Plan B in our pocket.

We have always known that our carrier uses us as a revenue tool and could care less about whether we stay or go. We easily lived with that fact because we were using our carrier as a revenue tool too.

We have seen several GREAT contractors and good friends leave over the years and it is as if they were never part of FDCC. That did not keep us from admiring FedEx and enjoying being part of the organization. It is an amazing company and it has been fun to move in and out of the terminals, airport facilities and interact with others in this, one of the world's great corporations.

But the company is not without its flaws and one of them just this week happened to cause a noticible dip in our revenue. We saw. We reacted. We proceed according to plan.

To those who shared a sympathetic word, we thank you for your concern.

 

[greg334]

Sorry Phil but you strike me as being in denial of something that has been happening for a long long time at FedEx with this statement;

Just this week, for the first time ever, we found ourselves stuck out west, not because of slow freight, but because of new, company-owned equipment that is run in direct competiton to us. While that prompted an emotional response, our focus on the money remains crystal clear.

The competition has always been there, long before you ever considered this as a "career" and it has affected a great many of us just the same. I was pretty much told I was full of sh*t when I stated what I was told but it seems others may now know what I said is true.

No matter what, it illustrates the point that FedEx is concern with themselves and not with the contractors as I stated here several times with the end result of cleaning up purple streamers from my truck for weeks. Being told this fact, being shown how things work outside Green's la la land, it hit me hard that my plan of action wasn't unlike yours but wasn't what they considered important enough to reward with work (100% on time everything with 2 refusals for the time I was there).

Pride is one thing, no denying someone of pride in their carrier but when some bring that pride out in the open with such defensive posturing when others speak the truth, it seems that they are in for a rude awaking when reality bites them in the a**.

The best advice I can offer anyone is that with FedEx, it isn't and will never be about you but them and ONLY them.

 

[layoutshooter]

"The best advice I can offer anyone is that with FedEx, it isn't and will never be about you but them and ONLY them."


This is likely true of any large carrier, business etc. FDCC being one of those. Everyone should always keep that idea in when working on there business plan.

 

[greg334]

"The best advice I can offer anyone is that with FedEx, it isn't and will never be about you but them and ONLY them."


This is likely true of any large carrier, business etc. FDCC being one of those. Everyone should always keep that idea in when working on there business plan.

Yes, I should have said that too because that's right, it applies to all of them, from Load-1 to Landstar to FedEx.

What I stress to a lot who ask my advice, which is taken pretty often than not, is always have an exit strategy, not just for the business but for the carrier.

In Phil's case, he has no where to go unless he changes that attitude. Say he goes to Landstar, he may not get anywhere near the level of prestigious work he has gotten from FedEx and the shipper will expect to load his truck with a forklift but the bigger issue is he will compete with SuperBs and D units just the same as if FedEx only had WG CR units. Panther may take him but may not.

 

[mrgoodtude]

I'm not ashamed in the least of who I am leased on to, but I have no particular pride in the association, either, because I know full well that they are in is for them, just as I'm in this for me. I have no illusions of pride of association to think I am somehow near the top of the food chain in a dog-eat-dog industry. I strongly suggest people re-think just how much pride they do have in their carrier associations, to not let it color your judgment. Keep in perspective.

Worse case scenario is a lack of "entitled revenue" generated by a "paid for truck"...
I still like The Fed and they have been good to me on many levels so I can't throw them under the bus for doing something Panther did over a year ago
It is what it is a business responsible not only to contractors but to the shareholders.
Yeah I know I am stating the obvious but sometime we lose sight of the tree's for the forest or sumptin like dat.
What does the future hold for us "super expediters"?
Don't know but even as unsettled as I may feel at the moment it has still been a great ride.
Jus Sayin
Somebody help me my body has been possessed by IRT

 

[layoutshooter]

Yes, I should have said that too because that's right, it applies to all of them, from Load-1 to Landstar to FedEx.

What I stress to a lot who ask my advice, which is taken pretty often than not, is always have an exit strategy, not just for the business but for the carrier.

In Phil's case, he has no where to go unless he changes that attitude. Say he goes to Landstar, he may not get anywhere near the level of prestigious work he has gotten from FedEx and the shipper will expect to load his truck with a forklift but the bigger issue is he will compete with SuperBs and D units just the same as if FedEx only had WG CR units. Panther may take him but may not.

Change is not always easy. It might not only be the prestigious work. I get the same kind of freight that he does. When I have talked with other carriers NONE say that they can keep me at my present income level. Is that true? I have NO idea. I can only go by what they tell me.

Competition is designed to bring down rates. That is what is happening. It also often lowers standards. I see that happening too. Even at FDCC.