FedEx Freight | Q4 2023 Earnings

[Holo989]

I wonder what customer that was? I bet they “changed their strategy” when we kept leaving freight on their dock.

We’re losing customers to a number of reasons, but from what customers have been telling me it’s mainly due to pricing. Customers can get their freight moved for cheaper, plus add in the extra charges we started using. Have 6 or more skids going to the same place, there’s a charge for that. Shipment over x amount of weight or linear ft, theres a charge. Automatic detention time if the stop takes more time than they seem fit, there’s a charge.

Now some of those charges have always been used but they lowered the requirements on some so customers are getting hit with them more often. Basically FedEx is trying to squeeze every penny they can out of customers and freight levels are down because of it.

 

[Road_Warrior1]

I wonder what customer that was? I bet they “changed their strategy” when we kept leaving freight on their dock.

Yeah they said C ya later. 25% is a lot…

 

[Road_Warrior1]

We’re losing customers to a number of reasons, but from what customers have been telling me it’s mainly due to pricing. Customers can get their freight moved for cheaper, plus add in the extra charges we started using. Have 6 or more skids going to the same place, there’s a charge for that. Shipment over x amount of weight or linear ft, theres a charge. Automatic detention time if the stop takes more time than they seem fit, there’s a charge.

Now some of those charges have always been used but they lowered the requirements on some so customers are getting hit with them more often. Basically FedEx is trying to squeeze every penny they can out of customers and freight levels are down because of it.

And trust me there’s more to come. Maybe not as huge as the one that was pointed. But there’s a very huge name that is already working with another LTL brokerage and they actually already been awarded the business. Once we lose them it’s going to suck, it’s national account. I’m not making anything up I have insider info and FedEx isn’t trying to gain any new business at all. I’ve seen emails and proof of how our “sales” people treat these LTL brokerage companies

 

[soochee64]

So max bonus payout then which is what approx 4.2%?

4.5%

 

[SwampRatt]

Before anyone asks, the payout of 4.5% will be included in your regular pay on the July 28th paycheck. This per leadership, for what that's worth.

 

[SMOKESTACK]

Before anyone asks, the payout of 4.5% will be included in your regular pay on the July 28th paycheck. This per leadership, for what that's worth.

Thank you SwampRatt !

 

[Talkischeap]

We use to be able to charge for our service product... Now it has become well we do not need to sell service because it hurts our OR. Problem with that is that does not separate us from any of the LTL companies. High prices slowing economy ..... does not work Just say n.

 

[Talkischeap]

Cripes!
They pulled off a 19.7% in this economy?

You can do that when you choose to not service the customer... Move it to rail or PT .. furlough .. Delay code etc.

 

[Road_Warrior1]

You can do that when you choose to not service the customer... Move it to rail or PT .. furlough .. Delay code etc.

And starve your drivers while rails in the yard are sitting loaded

 

[Holo989]

And trust me there’s more to come. Maybe not as huge as the one that was pointed. But there’s a very huge name that is already working with another LTL brokerage and they actually already been awarded the business. Once we lose them it’s going to suck, it’s national account. I’m not making anything up I have insider info and FedEx isn’t trying to gain any new business at all. I’ve seen emails and proof of how our “sales” people treat these LTL brokerage companies

I’m not a business man but from the things I’m seeing it looks like they’re trying to tank the freight side of FedEx. The express and ground merger is a mess and will be that way for years but it will survive because the only other option is to ship UPS and they don’t have the capacity to ship everything.

 

[Road_Warrior1]

I’m not a business man but from the things I’m seeing it looks like they’re trying to tank the freight side of FedEx. The express and ground merger is a mess and will be that way for years but it will survive because the only other option is to ship UPS and they don’t have the capacity to ship everything.

You know I was starting to think the same exact thing especially after I got info that FedEx isn’t even trying to win business from my inside person..

But then I ask myself what would they get out of tanking Freight? But it sure is looking that way

 

[No F-bdy Bs]

And trust me there’s more to come. Maybe not as huge as the one that was pointed. But there’s a very huge name that is already working with another LTL brokerage and they actually already been awarded the business. Once we lose them it’s going to suck, it’s national account. I’m not making anything up I have insider info and FedEx isn’t trying to gain any new business at all. I’ve seen emails and proof of how our “sales” people treat these LTL brokerage companies

If you know it, then say it.
Why would you be elusive about it?

 

[Brassballs]

Before anyone asks, the payout of 4.5% will be included in your regular pay on the July 28th paycheck. This per leadership, for what that's worth.

Its worth about $2500...

 

[Packerfan]

We’re losing customers to a number of reasons, but from what customers have been telling me it’s mainly due to pricing. Customers can get their freight moved for cheaper, plus add in the extra charges we started using. Have 6 or more skids going to the same place, there’s a charge for that. Shipment over x amount of weight or linear ft, theres a charge. Automatic detention time if the stop takes more time than they seem fit, there’s a charge.

Now some of those charges have always been used but they lowered the requirements on some so customers are getting hit with them more often. Basically FedEx is trying to squeeze every penny they can out of customers and freight levels are down because of it.

I work at a place where we are trying to get away from LTL and go with dedicated sprinter vans. Reason why. Its cheaper for us to use a dedicated sprinter van . And also there are no damages and freight not getting lost. If it will only cost us 1/4 of what it will cost sending it LTL, then we will do that. Its just the way it is. Companies are looking for ways to save money. Its not what it used to be. That's for sure.

 

[nasvegas]

We’re losing customers to a number of reasons, but from what customers have been telling me it’s mainly due to pricing. Customers can get their freight moved for cheaper, plus add in the extra charges we started using. Have 6 or more skids going to the same place, there’s a charge for that. Shipment over x amount of weight or linear ft, theres a charge. Automatic detention time if the stop takes more time than they seem fit, there’s a charge.

Now some of those charges have always been used but they lowered the requirements on some so customers are getting hit with them more often. Basically FedEx is trying to squeeze every penny they can out of customers and freight levels are down because of it.

Truth truth truth! Also our prized service isn't what it use to be so customers are choosing other options that are cheaper and the same or better service.