What's new

FedEx Freight | "Significant number" of straight trucks coming to FXFE

SwampRatt

SwampRatt

TB Legend
Credits
457
Whether it's driven by increased e-commerce, a tight Class A driver market, or (more likely) both, more straight truck are coming soon.

Earnings-call-transcript: https://seekingalpha.com/article/40...j5k:30576d30f92a103feebbab7fbabc483e&uprof=51

Frederick Smith:

"Now we are at FedEx Freight acquiring a significant number of the smaller 24 foot straight trucks with lifts because a fair amount of FedEx Freight shipments are going into neighbourhoods, and those are more compatible. So as the market turns more towards these oversized deliveries, I think you'll see FedEx Freight lean into that space in a big way."

Page-8 https://seekingalpha.com/article/40...-2017-results-earnings-call-transcript?page=8


Might we presume the integration of an "also significant" number of class B licensed drivers, with an alternate pay scale?

Clearly this is going to be a trend, not just at FedEx, but the industry at large. I'll be curious as to how such an integration will be presented, handled, and most importantly, executed...

Thoughts, comments, concerns, suggestions?
 
SwampRatt said:
Whether it's driven by increased e-commerce, a tight Class A driver market, or (more likely) both, more straight truck are coming soon.

Earnings-call-transcript: https://seekingalpha.com/article/40...j5k:30576d30f92a103feebbab7fbabc483e&uprof=51

Frederick Smith:

"Now we are at FedEx Freight acquiring a significant number of the smaller 24 foot straight trucks with lifts because a fair amount of FedEx Freight shipments are going into neighbourhoods, and those are more compatible. So as the market turns more towards these oversized deliveries, I think you'll see FedEx Freight lean into that space in a big way."

Page-8 https://seekingalpha.com/article/40...-2017-results-earnings-call-transcript?page=8


Might we presume the integration of an "also significant" number of class B licensed drivers, with an alternate pay scale?

Clearly this is going to be a trend, not just at FedEx, but the industry at large. I'll be curious as to how such an integration will be presented, handled, and most importantly, executed...

Thoughts, comments, concerns, suggestions?
Click to expand...
I have been whining about this for several years now,great news to me!!!!!!
With the growth of our city we as city drivers are losing the footprint that we have had to work with.
Alternate pay scale for class B??? Should be IMO.....HAZ MAT,Tanker,Doubles & Triples endorsements should be premium scale.
 
This is something much of the LTL industry in Canada already does, particularly in Toronto and Montreal due to the exceedingly tight quarters in the oldest areas.

I can say that FXFC paid all city units the same way while I was there. Originally it was hourly, but too many guys were caught stealing time. So it was switched to a pay scale based on bill count and the weight of each bill. This meant straight trucks had to hustle to make their money, but I never heard the drivers or the owners complain about that.

My barn had 4 straight trucks when I left, and I believe they've added another since. WTO, the bigger hub in Mississauga, had 10 or so.

I'm not sure how much difference there will be in pay for your guys, but it's unlikely to be a big one. Average hourly rate for tractor trailer drivers in Toronto is $18-$20/hr, while straight trucks tend to start at $16, still climbing to $20 in a number of cases.
 
Redracer3136 said:
I agree, it's a welcomed site for many of our city guys...especially on the downtown routes!!
Click to expand...

Don't assume they will be CDL drivers. If you look at most furniture and appliance Del trucks they are 22-26 ft and NON CDL. Regular lic, need a med card, no Dot drug test. No endorsements, can haul up to 1000 lbs of haz mat with no endorsement. UPS and Fed Ex Ground live by it.
 
ltltrkr said:
Don't assume they will be CDL drivers. If you look at most furniture and appliance Del trucks they are 22-26 ft and NON CDL. Regular lic, need a med card, no Dot drug test. No endorsements, can haul up to 1000 lbs of haz mat with no endorsement. UPS and Fed Ex Ground live by it.
Click to expand...

We started getting at Pyle, 18ft boxes for every small Del you can think of. In the North East Pit Ohio and Ward have been using NON CDL S/T for 10 years. The SEFL guys said they were get 200+ of them for residential Del and small locations.
 
For years most LTL companies had fleets of S/T and they seemed to go away. Think of APA, they had as many S/T as they did trailers at city terminals.
 
ltltrkr said:
Don't assume they will be CDL drivers. If you look at most furniture and appliance Del trucks they are 22-26 ft and NON CDL. Regular lic, need a med card, no Dot drug test. No endorsements, can haul up to 1000 lbs of haz mat with no endorsement. UPS and Fed Ex Ground live by it.
Click to expand...
Excellent point. If the GVWR is kept at or below 26,000, and no placards are required, the pool of qualified drivers grows significantly. Even with hazmat (requiring placarding), Class C would cover the requirements.

Reminder of the CDL classes: (383.91)
mfw1nTZ.jpg


https://www.ecfr.gov/cgi-bin/retrieveECFR?gp=1&ty=HTML&h=L&mc=true&=PART&n=pt49.5.383#se49.5.383_123
 
Last edited:
ltltrkr said:
Don't assume they will be CDL drivers. If you look at most furniture and appliance Del trucks they are 22-26 ft and NON CDL. Regular lic, need a med card, no Dot drug test. No endorsements, can haul up to 1000 lbs of haz mat with no endorsement. UPS and Fed Ex Ground live by it.
Click to expand...
What ever it takes to service the customer is ok by me. I hope we get several!!
 
SwampRatt said:
Whether it's driven by increased e-commerce, a tight Class A driver market, or (more likely) both, more straight truck are coming soon.

Earnings-call-transcript: https://seekingalpha.com/article/40...j5k:30576d30f92a103feebbab7fbabc483e&uprof=51

Frederick Smith:

"Now we are at FedEx Freight acquiring a significant number of the smaller 24 foot straight trucks with lifts because a fair amount of FedEx Freight shipments are going into neighbourhoods, and those are more compatible. So as the market turns more towards these oversized deliveries, I think you'll see FedEx Freight lean into that space in a big way."

Page-8 https://seekingalpha.com/article/40...-2017-results-earnings-call-transcript?page=8


Might we presume the integration of an "also significant" number of class B licensed drivers, with an alternate pay scale?

Clearly this is going to be a trend, not just at FedEx, but the industry at large. I'll be curious as to how such an integration will be presented, handled, and most importantly, executed...

Thoughts, comments, concerns, suggestions?
Click to expand...
Did Fred discuss how there will be room in these neighborhoods for a straight truck, and oversized hats, at the same time??? They may need to consult with BRG Patel on this?.
 
So are they going to have a third classification of driver? An additional, lesser pay scale? What happens when a Class A driver has to drive a straight truck, less money today?
Not enough straight truck routes for the labor pool today?
Just sayin'
 
As
Purple Hammer said:
We had one for about 2 months in CLT about 4 years ago. One of our drivers crashed it and it was never repaired or replaced. He was a regular City Driver on top pay.
Click to expand...
As I would expect. Anything different would cause some very interesting scenarios. I only brought it up because at one point this thread seemed headed in that direction.
 
truckingBORED said:
Autonomous line haul and non CDL last mile deliveries. That's the desire here folks...
Click to expand...
I think the purchase of the straight trucks is in response to the rise in residential deliveries as well as the inability to make such deliveries with full size tractor trailers. The voice of the city drivers has finally been heard in regards to the safety of trying to drive 48 and 53 foot trailers in neighborhoods. Some residential deliveries are a real pain in the ass in a full size rig. I have had to back out of neighborhoods plenty of times sometimes for over a mile after being told by the homeowner " Oh yeah you can get turned around." The article never said there would be two classes of drivers. Fear mongering without facts yet again.
 
You must log in or register to reply here.
Top