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XPO | Feedback from St. Louis SCM Conference

thestrap said:
This is the part of the article that got my attention.

"XPO officials say they plan to introduce an economy LTL service to go along with the legacy Con-way high-velocity service, which will triple the size of the addressable market.
A slower, economy product will enable XPO to shift a substantial portion of line-haul moves to intermodal because deferred delivery is an accepted part of the service. And, Jacobs said, intermodal can even be used for premium freight on dense “power lanes.” "
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We all know changes are coming. It's going to happen. Will their be enough freight to keep us all busy ? That is the question.
 
ESP said:
The entire page is worth reading, twice or more. All xpo/Conway people should read this. Especially the part that says plans for Conway. Mr. Jacobs one comment of Conway was to say Conway has a few too many terminals and they are not all in the profit zone. He will locate them and try to make them swing a profit in a certain amount of time, as the story also said he did this at ND. I would not panic yet, he may be able to make them all profitable and close nothing. As far as line haul he says he will balance the lanes with his other companies. Take that to mean anything you want. If it is with more freight to balance the lanes, then great news. If you take it to mean other companies will help haul your freight, than that could be bad. I wish you all the best. Take this to bed with you, He did not buy Conway to destroy it.
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He will try to make it make money. Change staffing. Change freight. Then close. It will not be a good thing to be a bad terminal. I doubt he will reward to many of those employees that failed to make a profit with work at other facilities.

He is going to improve every single thing we do. This is a big picture guy. He ain't stepping over $100's to pick up dimes.
 
trucknfool said:
I sure sounds like more sub service carriers pulling Linehaul freight reading between the lines. ????
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Not necessarily. FedEx has this model after they integrated Watkins. In Ohio ( West Jefferson ) they have a HUGE terminal that is for slow freight , to my understanding. And a little bit up the road they have a nice sized terminal for fast freight ( near Dayton ). You almost get ran off the road by FedEx Freight tractors pulling intermodal trailers - NOT contractors. Their equipment , their drivers.
 
trucknfool said:
I sure sounds like more sub service carriers pulling Linehaul freight reading between the lines. ????
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He could take it off of our trailers (ex-Conway) and put it on his Expedite drivers or use his Truck Brokerage drivers/carriers and eliminate the Swifts/Englands/etc..and also downsize our linehaul. Remember he said he wanted to cut-back or eliminate sub-service and put more freight on his line-haul to create longer and more runs.
He could do that by using his Expedite, Brokerage, and even Intermodal and not use the former Con-way linehaul. If they do cut some linehaul, those drivers will fall into their seniority spot on the P&D board or even the dock board and whoever is on the bottom of those boards needs to be concerned.
 
thestrap said:
He could take it off of our trailers (ex-Conway) and put it on his Expedite drivers or use his Truck Brokerage drivers/carriers and eliminate the Swifts/Englands/etc..and also downsize our linehaul. Remember he said he wanted to cut-back or eliminate sub-service and put more freight on his line-haul to create longer and more runs.
He could do that by using his Expedite, Brokerage, and even Intermodal and not use the former Con-way linehaul. If they do cut some linehaul, those drivers will fall into their seniority spot on the P&D board or even the dock board and whoever is on the bottom of those boards needs to be concerned.
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I am far from being an expert, but you have presented the most likely way of doing things in the future. If anything changes as all. I can only presume that you do work for Conway/xpo. Sounds as if you know how things work there road and city and dock.
 
Northern Flash said:
It sounds like that is what Conway did trying to put YRCW out of business, and it sounds like that was the biggest mistake that they ever made.
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Northern Flash said:
It sounds like that is what Conway did trying to put YRCW out of business, and it sounds like that was the biggest mistake that they ever made.
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yes! we hauled almost twice the freight and didn't make anymore of a profit,but that was the year i worked 12-14hr days just on the dock rarely did i see a truck but boy i went from 260lbs to 206lbs
 
thestrap said:
This is the part of the article that got my attention.

"XPO officials say they plan to introduce an economy LTL service to go along with the legacy Con-way high-velocity service, which will triple the size of the addressable market.
A slower, economy product will enable XPO to shift a substantial portion of line-haul moves to intermodal because deferred delivery is an accepted part of the service. And, Jacobs said, intermodal can even be used for premium freight on dense “power lanes.” "
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we did this many many years ago,and failed, but we also didn't have the containers in our fleet like xpo.either we replay history here or he makes it work with his equipment
 
radman said:
I would guess that if they did it in Europe they will do it here. It makes sense, we are either making money or we aren't. I just hope my service center is making money.
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my barn along with our zones fall right into this.our scm says xag is profitable but i would feel more relaxed if a non conway rep told me this.xpq took a hit with the bankruptcy of a paper mill up here.alot of companies just shut their doors up here their freight is gone permanetly .xew well they,ve got a problem in the near future.and the fact is if we had a bigger terminal at xpp every thing could be run out of portland with no need for xag(with the exceptions of a few runs)and if this came true then xsx would shut down as a reship due to the fact xag can't reach xab( unless we could run 70mph or faster)we are the only reason why we reship out of xsx.seems to be alot of savings right there not to mention saving on management costs.
 
highspeeds said:
A bunch of the drivers at some terminals around me are already planning where they want to dovetail into. They need to be busting their ass to improve their current situation.
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That would be my advice also. Either things improve, or you might be having a real long commute to the new operation that you dovetailed into.
 
had enough said:
fed ex isn't worried by small fry xpo
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The champion versus the #1 Contender? That's what Goliath thought just before Davy kicked his ass.
:biglaugh:

davey_and_goliath.jpg
 
catchTHErabbit said:
my barn along with our zones fall right into this.our scm says xag is profitable but i would feel more relaxed if a non conway rep told me this.xpq took a hit with the bankruptcy of a paper mill up here.alot of companies just shut their doors up here their freight is gone permanetly .xew well they,ve got a problem in the near future.and the fact is if we had a bigger terminal at xpp every thing could be run out of portland with no need for xag(with the exceptions of a few runs)and if this came true then xsx would shut down as a reship due to the fact xag can't reach xab( unless we could run 70mph or faster)we are the only reason why we reship out of xsx.seems to be alot of savings right there not to mention saving on management costs.
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Your giving too many reasons to close xag. Haven't we gotten no use out of the cf property next door from xsx the last 10 years. Xpo should build condos with all these assets
 
had enough said:
Fed ex will be low balling the freight to make it awfully difficult to make this xpo deal to thrive. Good luck boys.
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I talked to my sales guy at my barn and told him about this possibility of FED-EX underpricing XPO to keep Mr. Jacobs from scaling up his business and cutting into FDX's market share. My sales guy told me that there is sooooo much misinformation, deception, rumors, disinformation etc. about what XPO's future is going to be in a few years relative the competition, i.e. FDX and other major LTL players. My sales guy basically said that all the junk and trash talk is just that and don't be too concerned what our competition says they are going to do us. He further stated that , Mr. Jacobs has a plan and is in the process of putting all the pieces of his puzzle together.
 
highspeeds said:
One of the big rumors going around is that XPO has a freight contract with FedEx. If it were to not be renewed, some of that freight would find it's way I direction. Allegedly.
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Sounds good to me...I deliver U-line packaging stuff to a 'XPO Last Mile' furniture warehouse about once a week. I'm sure if FDX FRT. delivers any small furniture pcs here, it would be alright w/ me if those pcs got delivered through our LTL system instead. Next time I see this last mile receiver I'll have to get the scoop on what's going on relative to FDX dropping off freight at his whse.
 
thestrap said:
This is the part of the article that got my attention.

"XPO officials say they plan to introduce an economy LTL service to go along with the legacy Con-way high-velocity service, which will triple the size of the addressable market.
A slower, economy product will enable XPO to shift a substantial portion of line-haul moves to intermodal because deferred delivery is an accepted part of the service. And, Jacobs said, intermodal can even be used for premium freight on dense “power lanes.” "
Click to expand...

L/H will definitely be different than what it is now...but we're looking at least two years down the road before 'Economy Freight' comes into play w/I Mr. Jacobs' system. And no doubt that this is a real legitimate concern for all current L/H drivers looking towards their future if a lot of containers take their work. Another related concern that I have is 'terminal space.'' If XPO outgrows it's existing sic centers by adding economy freight, how will the current sic centers be able to handle and process all the combined premium and economy freight together??? I talked to our regional manager recently and he said that we are currently running around 80% capacity w/just priority freight. So, I hope Mr. Jacobs' got it all figured out...cause I don't. That probably why I'm just a 'dumb truck driver.' and not a business whizzzzzz!!!
 
icuicp said:
Not necessarily. FedEx has this model after they integrated Watkins. In Ohio ( West Jefferson ) they have a HUGE terminal that is for slow freight , to my understanding. And a little bit up the road they have a nice sized terminal for fast freight ( near Dayton ). You almost get ran off the road by FedEx Freight tractors pulling intermodal trailers - NOT contractors. Their equipment , their drivers.
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I like FDX's idea...I like it a lot!!!
 
had enough said:
fed ex isn't worried by small fry xpo
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Maybe not right now...but once Mr.Jacobs puts all the pieces of his behemoth transportation monolith together...it'll be a different story. XPO Logistics is making waves in the transportation/ logistics industry and what he's doing has caught the attention of one of the 'Big Guys.' I can't remember where I read it, but Mr. Smith was asked what he thinks about Mr. Jacobs' juggernaut that is one of the fasting growing transportation company today. Mr. Smith's reply, "He, (Jacobs), is an industry in and of himself."
 
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