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FedEx Freight | 87-92% Discount

Yes... No... Errrr... what was the question again?

Is it possible for you to make a post without asking a question? Try to ad to trucking boards instead of being another 7-11.

What are your thoughts about what will happen with USF?

...what are the positives and negatives of the Union involvement?

I guess I do not understand your answer, beat over the head with what?

Is it true that Saia will beat any YRC discount by an additional 10%?

I heard a rumor that if YRC is not profitable by July the company is thinking of closing their doors, is this possible from such a large company?
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We put an 87% discount on an account. R&L Carriers came in and said they'd match us plus an additional 10% discount.

It's hard to compete with these cut-rate outfits and their drivers who pay out-of-pocket for company equipment and get no overtime. Sorry, but I'm not gonna work 60 hours a week in the city and buy pallet jacks and handtrucks so my company can low-ball freight.

That's why I'm getting out of this biz. I see the writing on the wall. :TR10driving03:
 
92 is a real number...I have personally seen it at 2 different customers now...this puts us into the 2001 rate base, something NONE of us can afford..
 
Mike Varnco said:
We put an 87% discount on an account. R&L Carriers came in and said they'd match us plus an additional 10% discount.

It's hard to compete with these cut-rate outfits and their drivers who pay out-of-pocket for company equipment and get no overtime. Sorry, but I'm not gonna work 60 hours a week in the city and buy pallet jacks and handtrucks so my company can low-ball freight.

That's why I'm getting out of this biz. I see the writing on the wall. :TR10driving03:
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. There is no way that R&L put in a 97% discount to secure whatever business you are referring to. What is the point of moving freight for nothing?? personally I would not touch this business and let FDX move it and lose money!
 
freightgal said:
. There is no way that R&L put in a 97% discount to secure whatever business you are referring to. What is the point of moving freight for nothing?? personally I would not touch this business and let FDX move it and lose money!
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Well freightgal, I'm not making this up. The salesman on my route showed me the bid and what R&L put in to secure the freight. So take it for what it's worth. You think that's bad, we've got SAIA here hauling coast-to-coast freight for $100.00 less than we are...and we're a long-haul oufit and they're a regional carrier. So go figure.

Nothing makes sense in this industry these days, which is why I just shake my head and just try and do the best I can. Let the chips fall where they may.

But whatever happens, I don't care what anyone else hauls for because I'm getting out of this business as soon as the economy turns.
 
BoxBoss said:
92 is a real number...I have personally seen it at 2 different customers now...this puts us into the 2001 rate base, something NONE of us can afford..
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When customers force carriers to bid with large FAK's and on rates bases like CZAR LITE 01.....in the Mid 70's....easy to get an effective discount in the low 90's. Overcapacity is driving this as well. It is not as vulgar as 92% on current rates...but its still there on the net charges.
 
I have seen some whoppers without the large percentage discount. I have seen some on czarlites, EZADV tariffs, or old watkins rates carried over. These tariffs are moving freight for next to nothing. I have one customer on EZADV who wanted to ship to canada though. I put in a 60% and they thought it was a joke. I explained that they caught onto a wave years back that hasnt crashed for them. If they want to ship to canada, they will do it at the rates I published for them or I will amend their ezadv, they complied and now get a monthly Canada shipment we actually make money on. In case some of you guys dont know, FXF doesnt cut the rates of other carriers, we get close but not cutting because if a customer uses us even though the rates are less with another carrier, the competition cant touch that customer. if the customer moves freight with that other carrier, it hurts them more than it benefits them if its going at a 90%+ discount. Its because FXF is uniquely positioned with the ability to offer value in service that most other carriers can't. These advantages give us a feather in the cap and a champ in our corner when negotiating rates. The most I have ever put in for a customer was 87% for intra service center moves. Normally I dont go above 70% unless its $100K a year or more and then i will max out at 75%. I know these are ridiculous but a shipper will take their biz elsewhere unless we can get within 50$ on a shipment, sometimes I will admit to a customer that I will not come close but offer them guidance on other carriers, now I have turned myself into a freight consultant and that increases the image of FXF.
 
FR8SALES said:
I know these are ridiculous but a shipper will take their biz elsewhere unless we can get within 50$ on a shipment, sometimes I will admit to a customer that I will not come close but offer them guidance on other carriers, now I have turned myself into a freight consultant and that increases the image of FXF.
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I took out most of your post ......but just doing this will helps us in the long run ..... being honest and helpful to our customers .... most will not forget it ...
 
freightgal said:
. There is no way that R&L put in a 97% discount to secure whatever business you are referring to. What is the point of moving freight for nothing?? personally I would not touch this business and let FDX move it and lose money!
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Its important not o confuse the net effect on the freight invoice of 10% versus 10 discount points.....in the mid 70's on most tariffs each discount point is worth about 4% on the net bill.
 
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