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FedEx Freight | FedEx Freight prunes 1,400 customers to protect service levels

Freightmaster1

Freightmaster1

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FedEx Freight prunes 1,400 customers to protect service levels

FedEx Freight has more business in some regions than it can manage, so it is freeing up capacity by telling hundreds of customers it won’t pick up their shipments starting Monday, June 14.
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Ron Burgundy Wow GIF
 
Genius move! They'd rather cut customers than pay more money to fill the thousands of open driver positions across the country. You better believe they've run the numbers. Does anyone remember the 2500-3000 drivers they got rid of several years ago? I do. They've burnt a lot of bridges and now their reputation precedes them. This is another dumb move that will turn sour in the future.
 
Chicken Hawk said:
I heard they cut out the "cheap freight" so they could focus on moving the freight that pays the bills. Makes sense to me. We are in business to make a profit.
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Ok, I will bite...so I take freight that has a 20% O/R....they ship less freight which means the need for less drivers and oh by the way 3 shipment that bring 20% OR does not add up the the customers that does 1000 shipments at 5% OR. lets not forget, the fall out will also impact small parcel, custom critical and express. If you phuck me on freight, why should I give you business on the other modes???

whoever made this decision and how it was communicated should be chit canned...guess what, this has Fred kid all over it.....welcome to the new company...might as well call them phuckupexpress.....
 
Jobbs62 said:
Genius move! They'd rather cut customers than pay more money to fill the thousands of open driver positions across the country. You better believe they've run the numbers. Does anyone remember the 2500-3000 drivers they got rid of several years ago? I do. They've burnt a lot of bridges and now their reputation precedes them. This is another dumb move that will turn sour in the future.
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Driver shortage solved! Wait, were all the stories fabricated to justify this move?
 
Chicken Hawk said:
I heard they cut out the "cheap freight" so they could focus on moving the freight that pays the bills. Makes sense to me. We are in business to make a profit.
Click to expand...
I agree, but the way they went about doing this seems pretty unprofessional to me.

In the past my center has raised the rates on accounts that weren't making us much money, were difficult to load around, frequently got damaged, etc. At least in that scenario customers were given some time to make decisions as opposed to having the rug pulled out from under them.

I think all the accounts that we dropped at my center were big SLC ones.
 
Jobbs62 said:
Genius move! They'd rather cut customers than pay more money to fill the thousands of open driver positions across the country. You better believe they've run the numbers. Does anyone remember the 2500-3000 drivers they got rid of several years ago? I do. They've burnt a lot of bridges and now their reputation precedes them. This is another dumb move that will turn sour in the future.
Click to expand...
Pepperidge Farm remembers…
 
As a driver I did the same thing later in my time.

Dumped companies that sent me to associated grocers to rot for a day or two and pay a bunch to lumper it. No pay for the week on hardly any miles.

Quit.

Go to a company that does drop hook. Loads done in 15 minutes rolling again. Hardly see a dock. The cup runneth over.

Then again I could impale Associated on having just two people in their facility running the place while the drivers provided their own labor or a outside company to do it on site.

Suppose Fed ex did the same thing.

In our UPS in Searcy there is one corner of the dock called the problem corner. You have about oh 100 packages rotting there. If you were a customer and wanted to go there get it? The facility only was open one hour late on wedensdays at 5Pm to 6 PM for you to go retrieve it provided you have the correct information.

Otherwise they wont be bothered.

There is going to be many other outfits scooping up what FedEx leaves on the table. Possibly enough to starve FedEx and create a situation for them to go out of business.
 
Emmitt said:
I agree, but the way they went about doing this seems pretty unprofessional to me.

In the past my center has raised the rates on accounts that weren't making us much money, were difficult to load around, frequently got damaged, etc. At least in that scenario customers were given some time to make decisions as opposed to having the rug pulled out from under them.

I think all the accounts that we dropped at my center were big SLC ones.
Click to expand...
Has any center had a meeting on this subject? Our center has had 3 meetings in last 14 months . The only reason we had those 3 was we had visitors.
 
In this thread we find out who knee-jerks, and has no concept of business.

I think you'd be suprised at how cheaply those 1,400 were getting their freight shipped for. Like a 90% discount.
Old contract agreements that are no longer profitable. Odd sized freight, and high likelyhood of damage. I guarantee Fx is not losing $ on this deal. If those 1,400 customers had freight that was highly profitable to ship, Fx would obviously do it.
This is trimming old fat, nothing more.
Let the garbage men carry the garbage.


One of 2 things will happen.
A: Fx rids itself of freight that is COSTING Fx $ to ship, and good riddance.
B: Other carriers can't take up the slack, shipment times go unfulfilled. Customer comes back to Fx to renegotiate, Fx charges them enough to make shipping their freight profitable again.


Unprofessional way to do it? As opposed to what?
They simply ripped the Band-Aid off all at once, instead of Micky Mousing around with it.

Fx makes more money per shipment.
Less shipment means less drivers needed. Don't panic. No one is getting laid off. They just won't need to hire in a market where they'd have to basically take anyone that applied (bottom of barrel).


Now, the variable is Fx doing the right thing in regards to their loyal crew, and getting pay and benefits to a respectible level.
 
No F-bdy Bs said:
In this thread we find out who knee-jerks, and has no concept of business.

I think you'd be suprised at how cheaply those 1,400 were getting their freight shipped for. Like a 90% discount.
Old contract agreements that are no longer profitable. Odd sized freight, and high likelyhood of damage. I guarantee Fx is not losing $ on this deal. If those 1,400 customers had freight that was highly profitable to ship, Fx would obviously do it.
This is trimming old fat, nothing more.
Let the garbage men carry the garbage.


One of 2 things will happen.
A: Fx rids itself of freight that is COSTING Fx $ to ship, and good riddance.
B: Other carriers can't take up the slack, shipment times go unfulfilled. Customer comes back to Fx to renegotiate, Fx charges them enough to make shipping their freight profitable again.


Unprofessional way to do it? As opposed to what?
They simply ripped the Band-Aid off all at once, instead of Micky Mousing around with it.

Fx makes more money per shipment.
Less shipment means less drivers needed. Don't panic. No one is getting laid off. They just won't need to hire in a market where they'd have to basically take anyone that applied (bottom of barrel).


Now, the variable is Fx doing the right thing in regards to their loyal crew, and getting pay and benefits to a respectible level.
Click to expand...
Don't forget the fugly freight clogs the system for the premium stuff.
 
big dog said:
Has any center had a meeting on this subject? Our center has had 3 meetings in last 14 months . The only reason we had those 3 was we had visitors.
Click to expand...
Are you saying your Center has only had 3 preshift meetings or meetings in general? We have them all the time.
 
No F-bdy Bs said:
In this thread we find out who knee-jerks, and has no concept of business.

I think you'd be suprised at how cheaply those 1,400 were getting their freight shipped for. Like a 90% discount.
Old contract agreements that are no longer profitable. Odd sized freight, and high likelyhood of damage. I guarantee Fx is not losing $ on this deal. If those 1,400 customers had freight that was highly profitable to ship, Fx would obviously do it.
This is trimming old fat, nothing more.
Let the garbage men carry the garbage.


One of 2 things will happen.
A: Fx rids itself of freight that is COSTING Fx $ to ship, and good riddance.
B: Other carriers can't take up the slack, shipment times go unfulfilled. Customer comes back to Fx to renegotiate, Fx charges them enough to make shipping their freight profitable again.


Unprofessional way to do it? As opposed to what?
They simply ripped the Band-Aid off all at once, instead of Micky Mousing around with it.

Fx makes more money per shipment.
Less shipment means less drivers needed. Don't panic. No one is getting laid off. They just won't need to hire in a market where they'd have to basically take anyone that applied (bottom of barrel).


Now, the variable is Fx doing the right thing in regards to their loyal crew, and getting pay and benefits to a respectible level.
Click to expand...

Thanks for the explanation, we are all just dumb truck drivers. Do you feel better about yourself that you tried to talk down to you're piers? Lol smh.
 
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