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TForce | TFI International Announces 2022 Second Quarter Results

These numbers were last seen during the Harwood Cochrane era….we ain’t as big as we were but making more money than we ever did !
 
There are still customers that supposedly locked in long term contracts because of UPS deep deep discounting freight rates for increase in small packages.
Those contracts will be sporadically ending and they will face price increases.

*Some customers have already told me we damage a lot of stuff but the freight rates are unbeatable. They can still get by with their own suppliers credits and our crappy claims payouts.
*Some like the freight rates and can usually write off damages.
*Some have even said, when their long term contracts end and we jack up their freight pricing to competitive LTL levels, they will walk out of negotiations because we …in their own words…“Suck”.

IMO this whole UPS/TForce divorce is still a work in progress, there will continue to be operations adjustments, more condensed territory runs, business level drops and as collateral damage….some more layoffs happening as they look to lower the OR.
Trust and reliability issues to be earned again.
 
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There are still customers that supposedly locked in long term contracts because of UPS deep deep discounting freight rates for increase in small packages.
Those contracts will be sporadically ending and they will face price increases."

These no longer exist, not a single one exists at this time. UPS never ever negotiated LTL freight rates. That has always been done at the freight level. Virtually all LTL contracts can be opted out with advance notice of 30-60 days by either the customer or TForce. The divorce is complete all for the back door IT functions that UPS does for TForce. Folks need to stop pretending that UPS is still running TForce, it isn't.
 
stunhsif said:
"
There are still customers that supposedly locked in long term contracts because of UPS deep deep discounting freight rates for increase in small packages.
Those contracts will be sporadically ending and they will face price increases."

These no longer exist, not a single one exists at this time. UPS never ever negotiated LTL freight rates. That has always been done at the freight level. Virtually all LTL contracts can be opted out with advance notice of 30-60 days by either the customer or TForce. The divorce is complete all for the back door IT functions that UPS does for TForce. Folks need to stop pretending that UPS is still running TForce, it isn't.
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Beg to disagree. The same UPS mentality managers are still calling the shots. For the most part the drivers and front-line workers do the best they can with what is available. There is still a bloated lower-mid level group of supervisors that do little up to nothing. Bedard says in his conference call the 2 biggest issues are distance between stops on the city end, and line haul inefficiency. Ask any driver and they will tell of countless times they passed up a stop and had to backtrack or passed another going to where they just came from. Same with line-haul. He also mentioned multiple shipments from every stop, makes perfect sense. Ask any city driver that when they call dispatch and tell of another shipment they are told, "they didn't call it in, get it tomorrow". He admitted our service is poor and needs to be improved, and we are working with IT tech that is 30 years old. IMHO until the purge of UPS minded management is done not much will change.
 
stunhsif said:
"
There are still customers that supposedly locked in long term contracts because of UPS deep deep discounting freight rates for increase in small packages.
Those contracts will be sporadically ending and they will face price increases."

These no longer exist, not a single one exists at this time. UPS never ever negotiated LTL freight rates. That has always been done at the freight level. Virtually all LTL contracts can be opted out with advance notice of 30-60 days by either the customer or TForce. The divorce is complete all for the back door IT functions that UPS does for TForce. Folks need to stop pretending that UPS is still running TForce, it isn't.
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It could be different at other barns but we have a bunch of customers with locked in contracts at my barn. I’ve even heard some National accounts as well. They are nervous and know they will lose those rates when their contract expires. As those contracts end and we raise their rates to true LTL competitive rates, they either stay or move on.
I’m told we have to honor those preexisting contracts per the sale of the freight division.
As far as a true UPS divorce…”Their strategic win win” campaign…we are still in the infancy of the 5 year agreement with UPS to serve their LTL needs and 3 year agreement for the back door services as we pave our own paths.
 
stunhsif said:
That is what Bedard is thinking as the contract negotiations come closer day by day.
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Bedard reiterated in the conference call that doing more with less DID NOT mean that they wanted to shortchange wage packages. He wants to increase the base pay in high cost areas as a way to attract talent. In the current employee shortage, I believe that this first contract with TFI will be pretty lucrative. He does want to acquire more tonnage at our current pickups and reduce miles between stops. Could mean a shift away from daily rural deliveries.
 
stunhsif said:
"
There are still customers that supposedly locked in long term contracts because of UPS deep deep discounting freight rates for increase in small packages.
Those contracts will be sporadically ending and they will face price increases."

These no longer exist, not a single one exists at this time. UPS never ever negotiated LTL freight rates. That has always been done at the freight level. Virtually all LTL contracts can be opted out with advance notice of 30-60 days by either the customer or TForce. The divorce is complete all for the back door IT functions that UPS does for TForce. Folks need to stop pretending that UPS is still running TForce, it isn't.
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Wrong!
Rouge fitness, , sun setter, and lake shore all had or have existing contracts.
Almost all have just expired.
We aren't getting near as or hardly any of rogue, or sun setter, and Lakeshore is now having to pay sort and seg rates
 
No port said:
Wrong!
Rouge fitness, , sun setter, and lake shore all had or have existing contracts.
Almost all have just expired.
We aren't getting near as or hardly any of rogue, or sun setter, and Lakeshore is now having to pay sort and seg rates
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That ought to cut claims by 50% alone.
 
I heard Lakeshore Learning was the previous presidents golden child account.
We have to bend over backwards for them, deliver skids to tight rooms as they break them down and count items. We also have to haul the skids and shrink wrap back with us.
Break down smaller orders and perform inside deliveries.
Accomplish an absolutely ‘No Fail” appointment to schools because they had teams waiting for the large deliveries. Even 1 minute late and the team is calling whomever about it. You can’t even arrive to the schools early, you have to wait somewhere until the right time.

We are somehow the preferred carrier outside the high priced white glove delivery for Costco.
Gazebos, Playsets, MegaSlam, bathroom vanities still infiltrating our system. I find it silly the pictures on the Gazebo boxes show a ‘two man” lift, your 2nd man is the pallet Jack or a call to dispatch to send help.

We still have a few Sunsetters that creep through our barn, sad thing is they are forklift damaged on the ends or somehow become accordions.

On the local side, we have a customer that locked in a longer than normal contract because pricing was unbelievably lower than competitions, we practically paid the, to pick their crap up and damage it. Anyway, it expires next year. They said they are fed up with our damages because their customers are not getting what they ordered and are now finding other resources for same items that are cheaper. They say we have the worst claim payouts because we always blame them for poor shipment prep. I asked them why do you still use us. It’s the pricing. Once that goes up they will drop us. IMO…good riddance on the undesirable fugly freight.

What we did as a UPS controlled LTL company was not the correct ingredient for success.
We were played, used and abused by the mothership that wanted to hoard the package marketplace from the competition in lieu of very good freight accounts we passed on. TFI needs to utilize the back office support as much as they can because 3 years will fly by quickly.
 
Toliet Paper said:
I think we need to hold fast for equal pay and benefits across the board no matter where you live.
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Ya really want to shake the tree... Demand regional supplements...
The cost of living in East Bumbleprick could be vastly different than The Republic of Commiefornia. There should be a minimum and a formula to equally apply it.
But yes, the base rate prior to the application of areas should be the same.
You have to be competitive in all markets to attract quality.
The next contract has to factor in COLA's.
 
What is going to be interesting is the new panels for grievances. Right now, you basically can't be fired. There are no panels, you would have to agree to be let go. If you demanded a hearing, there aren't any, everything is settled locally.
 
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