ABF | Lost Accounts
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I hear the opposite on Amazon. Not sure we will get the business but ABF signed a contract for 5 years delivering Amazon products putting supply chains in areas they were contracting out.
Just got word Amazon in my area to the DC’s is gone they were to demanding for what the were paying is what I heard, don’t know about the residential deliveries....
Amazon nation wide is gone from ABF.... hope everyone fairs well....
I was under the impression that Amazon is cut rate like Walmart. Hopefully ABF didn't get stung like others have.
Boilerpeddle
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ABf has been withdrawing from Amazon for a few years. (good thing too or we could have been in the same boat as NEMF) At my terminal we have gone from many loads a day down to just a few. Must be around two years ago now we intentionally gave up a portion that accounted for over a hundred bills a day becasue it wasn't performing. We still have residential deliveries from them and we still have some inbond but its not what it was. If we lost all of it I don't think it would cause a layoff or anything.
It is, at our terminal amazon operated at $1.30....Let some other company kiss their ass & jump through hoops to lose money....
canaryinthemine
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The demise of NEMF is the....elephant in the room. There are many accounts that are priced to.....stink. Amazon just happens to be a big, well-publicized, highly visible account.
And,.....WHO is responsible for companies low-balling freight accounts to the point of....company closure?
A sales force,...based on quantity rather than quality..........bonus-based on the number of accounts,...the size of accounts,.....but NOT the profitability of accounts.
ABF seems to be one of the last holdouts........a company who will not haul your freight unless there's at least a...little profit out of it. But, their "flirting" with accounts like Amazon.......shows me there's a few ....salespeople....who are doing an "in-house" sales job to ABF upper management........probably in their personal quest for "bonuses"....based on the size of the account....
And the reason they're doing it?....All the other low-ball, rat-ball carriers are sub-pricing their accounts too......WITHOUT regard to what LABOR force costs are.......Hey,....we can always cut the wages,...especially at the non-Unions.....
Is there such a thing as a freight salesman....living from paycheck to paycheck?
I can guarantee you that the people who ACTUALLY do the work,...have quite a few members who live that way......
And,.....WHO is responsible for companies low-balling freight accounts to the point of....company closure?
A sales force,...based on quantity rather than quality..........bonus-based on the number of accounts,...the size of accounts,.....but NOT the profitability of accounts.
ABF seems to be one of the last holdouts........a company who will not haul your freight unless there's at least a...little profit out of it. But, their "flirting" with accounts like Amazon.......shows me there's a few ....salespeople....who are doing an "in-house" sales job to ABF upper management........probably in their personal quest for "bonuses"....based on the size of the account....
And the reason they're doing it?....All the other low-ball, rat-ball carriers are sub-pricing their accounts too......WITHOUT regard to what LABOR force costs are.......Hey,....we can always cut the wages,...especially at the non-Unions.....
Is there such a thing as a freight salesman....living from paycheck to paycheck?
I can guarantee you that the people who ACTUALLY do the work,...have quite a few members who live that way......
The company has long had the policy that if a profit can't be made on an account then drop it. I remember several years ago a foreign company bought a manufacturing plant at Fort Smith & began demanding rate cuts. ABF had the account for many years because it was in their home town. The discounting went back & forth to 40%. Mr. Young finally said let the competition have it, I know what the equipment cost per mile is & we have one of the lowest in the industry. He said go ahead & let the competition wear out their old trucks on cheap freight.
Trucker 206
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Good post, canary...and certainly one that NEEDED to be made. Amazon freight is a joke! Up until the time I retired just over a year ago, I loathed anything from them. I never understood why the ‘sales’ staff pursued this extremely labor-intensive freight. Us drivers always thought, as we were humping a 350-pound elliptical up two flights of INSIDE (narrower) stairs to the young lady’s ‘workout room’ to be assembled by two of us on a day....naturally.....when we each had 17 stops with 8 pickups, WHY would our great company take on this crap?
: freight with threshold del. BYE BYE
One other thing also C, is Amazon operates on thin profit margins, but high volumes. So their warehouses need replenishment on a steady basis. With them starting their own logistics company just recently, they will prey on O/O’s,and truckload carriers,and LTL’s,needing daily revenue just to keep money coming in to pay the bills. They are said to have undercut rates around 25 percent to test this in 5 states,NY,NJ,PA,MD,and CT, I think. They want these carriers to commit to them exclusively with them offering loads back from their delivering area. But they also say that on off peak times they will basically auction off their contracted carriers to others. How nice of them. And with freight levels already flat nationwide now, and the truck owners telling their drivers they aren’t making anything on Amazon freight, guess whose paychecks will reflect that? Drivers? Oh yeah.
Best news I've heard all day. That freight sucks!
Brother, I know you are anti-company and this may or may not be something you want to hear but NEMF was mentioned in ARCB first quarter earnings conference call. It was in the Q and A and states exactly what you, DC, Trucker, Big R and others are saying.
And Brother, I'm not meaning to be confrontational or insulting it's just that earnings calls are a way for management to promote the business and brag on how well they are managing the business.
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canaryinthemine
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I am anti-company only in as much as I think companies should exist for it's workers and customers........and not the other way around...
I know that if you ask the CEO,.....he/she will tell you that the.....company....is of prime importance.....
But you and I.....and the other 99% of the population.....live in a country where the principal law-giving document has the words "Of the People, By the People" in it.....
And why shouldn't business be held to that....high...standard?
If business is ranked..."higher"....than the common interest......then just a few people profit....
And the rest of us are expendable fodder for the Labor pool.....
Businesses bend heaven and earth to convince......US.......of their paramount importance to the common good....all the while using and abusing their very workers and customers.....
Amazon would be a great example of that.......I'm sure Jeff Bezos is lying awake at night worrying about all the NEMF drivers who can't pay their mortgage, or afford college for their children........
Maybe he's lying awake at night thinking of all the stock dividends piling up.......
His business model is hundreds,..if not thousands of years old....
Slash your supplier's throats, so you can slash your competitor's throats....
So you can roll in a pile of dough high enough that you can't see the trail of wrecked lives and futures you've caused...to get that pile of dough......
Fed Ex is dropping Amazon contract for Air.. A huge acct.. But not profitable.. Amazon was so big, everyone wanted their business, but it doesnt take long to see why they are worth Billions and Billions... My take, it wont be long before they have their own trucking Co.. LTL included.. Hmmm, any takers.. Billions and Billions to throw at it.. They never said UPS would enter the LTL Business?
Where am I missing Canary being anti-company?
If you’re on the drivers side you’re anti company to him. We should all ask the company if they would like some more concessions so they can get the stockholders the money they need.
No one on TB is more union than me, thanks to the union I've been drawing a check for 29 years, something a lot
of you guys will never enjoy.
If you compare our membership today with the 60s, I think you will see a lot of companies failed without concessions, couldn't compete with nonunion companies.
Deregulation opened the door, anyone with a down payment got into the trucking business.
Another example, UAW, where did those jobs go without concessions.
Seabreeze, I guess I should have said Canary is anti-business rather than anti-company. Anyway, the reason Canary is anti-business is his belief that the role of businesses, or a company, in society is to support its workers. He has posted this belief many times. While this is true, it is a secondary consideration and one that must be addressed in order to keep a company in business. The primary role of business in society is to allow the greatest number of people the opportunity to create wealth.
Businesses have created more wealth, for more people, than any other wealth creating vehicle in human history. Take any average normal working individual, have them put 10% of their income every year of there working life (18-68) in a diversified index fund like the S&P 500 fund or the Russel 2000 fund, and that individual will have created enough wealth for the average person to retire comfortably on. Or take your average individual, have them start a business and spend 25 to 30 years growing that business and they will have created enough wealth to retire comfortably. But if you take the profit out of the business and give it to the individual workers, then you create no dividends, no reason for business expansions, and no reason for individuals to invest in that company.
When I say Canary is anti-company I don't mean this in a derogatory or name call way. It is his belief, he has stated it over and over, but that does not make it true. Business is for the creating of wealth and to allow everyone the opportunity to become wealthy.
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