What's new

ODFL | Fed X cuts Fuel Surcharge

JIM BOB said:
O.D. went down over 2 bucks today,wonder how the rest did ?
Click to expand...
SAIA went down 1.80 or so fed x went down .04 Would imagine same for all. Just hope Fed X can not achieve what the did in the Air freight Business. Though I think this would be harder. In that business the revolutionized the way air freight moved at a cheaper rate. I do not think there is a way to revolutionize much in the freight buis unless you could get shippers and receivers to move faster. But they are greedy and want to be the biggest. hopefully they cut their own throat. At least we can say that OD did not do it first.
 
if they did not raise there base rates they are going to shoot there self in the foot oil has been trading higher all week just a mater of time before it hits at the pump they might be able to do it short time but not for long sonds like a move to atract cust. hopfuly they **** off a bunch when they have to raise there rates up and the cust. jump to us we need more freight
 
carrier can pay for their fuel, tires, belts and anything else with diesel in it just fine with the surcharge they have currently. matter of fact its a profit center. some carriers kept cutting discounts to take business and relied on the fuel surcharge to make up the margins. FedEx Freight held back on the discounts and once able sliced the fuel across the board, which did take money out of the company, but it basicly cut pricing for all customers. other carriers cant afford that since they have continued to cut their discounts.
 
Would fedex raise their fuel surcharges in their other divisions to compensate for the lowering in the ltl sector? A company of their size could capitolize on this situation and the smaller ones would try this deal also but with no means of gaining capitol from somewhere else would hurt themselves in the longrun.
 
Skywalker said:
Would fedex raise their fuel surcharges in their other divisions to compensate for the lowering in the ltl sector? A company of their size could capitolize on this situation and the smaller ones would try this deal also but with no means of gaining capitol from somewhere else would hurt themselves in the longrun.
Click to expand...


Bingo!! I think we have a winner. Can you say companies that are limited to only LTL freight.
 
No doubt Fed X will be able to spread the cost out. I look at this reduction in fuel surcharge as a Sucker punch to all the other freight lines and to all drivers.
Fed X already charged a premium rate for there services. They could have easily lowered there tariffs without lowering the fuel surcharge at a time when fuel was at or near a peak. Why not just lower the tariff. My thought is it was a advertising ploy. Were the generous company that is going to do the American thing and lower the evil fuel surcharge. This of course if other companies follow could start a price war. In the end effecting the profits and on to our raises. Not just us but every other trucker out there.
 
You need to read the fine print of this fedex thing. It is only for new customers and not any customers under contract rates. (Bet that will tick them off). And there is a time frame on it.

I've got a better one. Hollan was hauling this freight for $54.00 a pallet. R&L comes in at $44.00 a pallet. 5 or more--$29.00 a pallet. Not making a dime on it but wanted the freight that bad.Probably will be back in 30 days and say they need a rate increase
 
Beeman said:
Bingo!! I think we have a winner. Can you say companies that are limited to only LTL freight.
Click to expand...


Beeman :1036316054:

You are right to the point.
I would think that the idea behind the fuel surcharge discount is to encourage YRCW and ABF to match the service provided by FedEx Freight.

:smilie_132:
 
It was still a sucker punch. Lots of free advertising. The customers that benefit from this could have just been offered a tariff discount. Shame on Fed X.
 
River17 said:
Beeman :1036316054:

You are right to the point.
I would think that the idea behind the fuel surcharge discount is to encourage YRCW and ABF to match the service provided by FedEx Freight.

:smilie_132:
Click to expand...

Is " encourage " the right word ????
 
sparky said:
It was still a sucker punch. Lots of free advertising. The customers that benefit from this could have just been offered a tariff discount. Shame on Fed X.
Click to expand...

It's called business..... FXF has an obligation to to their shareholders, not other trucking companies.
 
Jeff said:
It's called business..... FXF has an obligation to to their shareholders, not other trucking companies.
Click to expand...


Jeff :1036316054:

But in a way it shows that there is still too much capacity right now for the level of shipments generated by the slow down in the economy.
We need to see Ben Bernanke and the FOMC lower interest rates next Tuesday.
But don't hold your breath, they are still having nightmares of inflationary pressures.
 
FDX stockholders not to happy down 8.64 or 7.3% since day of announcement. Same day it stoped going up. Ouch to them 401 Ks to.
 
sparky said:
FDX stockholders not to happy down 8.64 or 7.3% since day of announcement. Same day it stoped going up. Ouch to them 401 Ks to.
Click to expand...


sparky :1036316054:

That only means that the FedEx people can buy more shares when the price is on sale.
The whole stock market is in the middle of a short term correction and FedEx stock goes up or down in tandem with the transportation index.
Good time to buy more shares in your 401K plan if you have money market cash to invest.
Any day below S&P 1450 is a good long term buy.


:smilie_132:
 
Ahh I guess I get this information from nowhere. It did not come out of the news. There were no articles showing obvious results Titled Rumors Of price Wars Suggesting that stockholders of LTL freight Company stocks including Fed X are concerned of price wars. And the obvious dip in the price of all stock in that sector including FDX.
 
This is from the original article I posted. There were others in Business news I read that follows the same pattern including the immediate drop in FDX stock price after the reduction. I think if you looked at the charts of every LTL company you will see a obvious decline in stock prices on the day and following days of the announcement.

"We view FedEx's action as the most overt sign of price competition in the LTL market since the mid 1990s," analyst Edward Wolfe wrote. "FedEx, as the largest regional provider and a industry leader in service levels and innovation, will without a doubt pressure the other providers. We suspect others will follow."

Bear Stearns also repeated its "underperform" rating on Con-way Inc (CNW.N: Quote, Profile, Research), YRC Worldwide Inc (YRCW.O: Quote, Profile, Research) and Arkansas Best Corp (ABFS.O: Quote, Profile, Research).

The stocks of most of these LTL operators fell after the downgrade
 
I don't know if this an after effect but the bottom fell out of freight so far this week. No frt. in MRT and no frt. in HAR to speak of.
 
You must log in or register to reply here.
Top