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FedEx Freight | getting heavy into purchase trucks again

"Eight PT's due in today. Four aren't making it. Five PTs due in today, 3 aren't coming in. 6 PT's due, 3 aren't making it, and the other two will get here about 4."

We hear it every morning. Before noon deliveries on PT. I'm not sure they put guaranteed freight on PT's, maybe even they aren't that stupid, but it wouldn't surprise me. Which makes me ask, if we have freight that has to be there, and you use your own people to get it there, why is that customer's freight more important than other freight? And wouldn't it be a quandary if EVERY customer bought guaranteed service? I'd have to assume we'd see PT go away.

And buttercup? Really? You need the moderators to protect you from h the big bad scary poster? Oh wait, now you're a big guy threatening violence.

The company doesn't care about how many they leave home. We're just meat to be used when needed, and put back in the refrigerator when not. It's easier to keep people on the hook than you have to actually make a plan.
 
sharpshooter said:
Landstar gets between 2.90-3.00 bucks a mile all in on fedex loads (that means rate+FSC)
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Few years ago Landstar wasnt getting that rate. I was leased to Landstar and was given a chance to pull Fedex loads. Granted this was 2 years ago. The rate then was 1.65. I could find out what the rate is out of CMH.
 
mikepetry said:
Few years ago Landstar wasnt getting that rate. I was leased to Landstar and was given a chance to pull Fedex loads. Granted this was 2 years ago. The rate then was 1.65. I could find out what the rate is out of CMH.
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probably depends on the agent too. I don't remember who this agent was, but the ones I saw where 2.97 about 4months ago
 
Oldernwiser said:
If that was the case you'd see TL Carriers tripping over their feet to haul our freight slashing that rate to half in a bid war.
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You think TL carriers don't make money just because they only pay .30cpm? "you get what you pay for" which is why certain places command a higher rate, everything is negotiable
 
sharpshooter said:
You think TL carriers don't make money just because they only pay .30cpm? "you get what you pay for" which is why certain places command a higher rate, everything is negotiable
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Was a O/O back in the industry a few years after deregulation of the industry. In the early 90's rates for truckload were higher then they are now. Also drove over the road as a company driver quite a few years. Profits for TL Carriers are and always have been slimer then LTL. 1-2% profit is a accepted profit to the big boys in TL.
Transport America, Hills Bros, Stevens, etc and almost every Purchase I've seen hauling our freight have been known for years in the industry as cut throat TL operations. Believe me, if they paid the rate your claiming there would be mass hysteria to bid it and haul it and the result would be much better service then were getting from the bottom of the barrel TL Carriers. I have a few freinds that would be all over it as well.

My bet would be it's no more then then it was 2 years ago, otherwise I'm getting back into the TL buisness.
 
Just remember, spring and summer are not far away. Freight will pickup and not enough manpower to move freight in some lanes.
 
Oldernwiser said:
Was a O/O back in the industry a few years after deregulation of the industry. In the early 90's rates for truckload were higher then they are now. Also drove over the road as a company driver quite a few years. Profits for TL Carriers are and always have been slimer then LTL. 1-2% profit is a accepted profit to the big boys in TL.
Transport America, Hills Bros, Stevens, etc and almost every Purchase I've seen hauling our freight have been known for years in the industry as cut throat TL operations. Believe me, if they paid the rate your claiming there would be mass hysteria to bid it and haul it and the result would be much better service then were getting from the bottom of the barrel TL Carriers. I have a few freinds that would be all over it as well.

My bet would be it's no more then then it was 2 years ago, otherwise I'm getting back into the TL buisness.
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Well, IDK what to tell ya, I have the printout to prove it. Remember, that full amount doesn't go to the truck, landstar gets their cut out of that too and that includes the FSC. Plus, they take the risk of it being cancelled last minute just like fedex does to our bids on a nightly basis. Some stay away from it for that reason
 
Here is the list from the Landstar load board.
Lasalle, Il to Schertz, TX = $2.09

Fremont, IN to Schertz=$1.85

Parma, OH to Dallas = $1.95

Indie to Irving TX = $2.22

Mo. to TX = $2.72

Ga. to FL $2.50 - $3.79


One thing that doesn't go in well will the BCO's (landstar o/o's) in a lot of areas they want you to drop your trailer in there and come back a day later to get it. Unless you live there or by chance they have a trailer already empty it's a deal breaker for a lot. Also from the list I just posted the areas these loads are going are not real good for return loads.
 
mikepetry said:
Here is the list from the Landstar load board.
Lasalle, Il to Schertz, TX = $2.09

Fremont, IN to Schertz=$1.85

Parma, OH to Dallas = $1.95

Indie to Irving TX = $2.22

Mo. to TX = $2.72

Ga. to FL $2.50 - $3.79


One thing that doesn't go in well will the BCO's (landstar o/o's) in a lot of areas they want you to drop your trailer in there and come back a day later to get it. Unless you live there or by chance they have a trailer already empty it's a deal breaker for a lot. Also from the list I just posted the areas these loads are going are not real good for return loads.
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Surely you're not suggesting these are the rates we actually pay....

oaf (incredulous)
 
CGT to ATL the last time I looked cost about $1700. There is a way to look on the computer to see the actual price were paying for each pt. Ill try and find and get some when the boss walks away.
 
20,000 dollars in freight on a 53' trailer and between the broker the truck owner/driver Fdx pays 3,000 to get a load moved I see the profit. Landstar always have had good rates. Back in the 80's thru 96 when I started here used them a lot and had several friends leased to them and they all had few if any complants.
 
Tenspeed said:
20,000 dollars in freight on a 53' trailer and between the broker the truck owner/driver Fdx pays 3,000 to get a load moved I see the profit. Landstar always have had good rates. Back in the 80's thru 96 when I started here used them a lot and had several friends leased to them and they all had few if any complants.
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Yea if I was to ever go back to O/O I'd have to give Landstar a hard look. They've been a decent O/O carrier for as long as I can remember.
 
Phantom 309 said:
Yea if I was to ever go back to O/O I'd have to give Landstar a hard look. They've been a decent O/O carrier for as long as I can remember.
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The only complaint I've heard about them is from the o/o who've been with them for a while is that the brokers are taking a bigger share of the run these days. Example a run that would pay $4.00 a mike is now paying $2.00. Being a freight broker is where it's at. I new one that worked for Mercer and it was nothing for him to make 3 million in a year. But he worked his but off and kept his drivers moving but in turn they made a killing if they were willing to run.
 
Is there a way to find out what rates we are paying them. I'm curious to find out what are contractors are getting
 
Old AF said:
I would suspect we negotiate much more favorable rates, based on the volume of loads that we contract with them.

oaf
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Man, you sure are skeptical about this aren't you? Mike posted REAL numbers for you! Take the 1.85cpm for example. Lets say thats 500 miles. That's $925- FSC at .43cpm=$710-35% for landstar corporate=$461.50. add the FSC back in=676.50 that's to the truck. Out of that you have fuel, pay yourself, truck payment, tire expenses, insurance, taxes etc etc. Now you, as a company driver are gonna make $300 for the same run without any of those expenses. So what do you find so outrageous about it?
 
sharpshooter said:
Now you, as a company driver are gonna make $300 for the same run without any of those expenses.
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It's why so many delivery companies and other industries are trending toward these "light" or "non" asset-based models.
Call up Roto-Rooter to fix your sewer...those guys own their own vans, tools, etc...Roto-Rooter corporate just provides them with calls and uniforms.
Frito-lay, bread trucks, etc...they all buy their own routes and vans.
Ports are mostly all O/O.
USPS linehaul is 100% fleet-owners...they even have I/C's doing local delivery.
FedEx Ground, FedEx Custom Critical.
Heck, I had a package delivered to my house last week and it by was some courier service. Neighbor said a guy in a car pulled up and dropped the package off and took off...I looked up the company and it's 100% independent contractors...you provide the vehicle and then you buy a route.
I think that's the way LTL is headed....Roadrunner, Daylite, Towne...all light-asset based 100% I/C models.
Look who's running this place now...parcel guys...and they LOVE them some FedEx Ground!!
Why? Big, fat margins because they don't pay for benefits, SS, taxes, workman's comp, etc or trucks...no mechanics...it all goes on the I/C's.
And there's nobody on the clock milking the job...it's all paid per box, per stop, pallet, etc...so those guys HUSTLE.
 
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