What's new

FedEx Freight | I am a simple man but...

Jeff

Jeff

Looking for Trolls
Administrator
Super Administrator
Credits
607
Been thinking. Say you have 21 or 22 shipments on a trailer and that trailer has say 3k dollars worth of fuel surcharge freight in it, then say if you loaded that 22 bills on a Shiny wheels 53 footer and added 18 more bills for @ 4500 in fuel surcharges alone and pay the shiny wheels say 3k to move it up the road I suspect an outfit could make alot on surcharges alone and never have to put a road driver in a seat.
 
With the US Dept of Energy setting the weekly fuel surcharge rates on average fuel price, and every LTL carrier all having different base rates and discounts for literally every shipper, I think even me,(Ted) can see they are using the surcharge to bolster their bottom line. PT, I would say gets so much per mile to move a trailer, plus fuel surcharge. The rest goes to the carrier to cover costs of handling, pickup and delivery and so on. I am quite sure every LTL makes more profit using PT for linehaul, except they cannot yet figure out how to use them for all nightly linehaul moves, and incorporate it into a system that thrives mostly on overnight moves of 400-500 miles or less.
 
I've been talking to friends, and we all agree that if FEDEX could figure it out. All big mile meets would go to contractors, and they would save the night stuff an small meets for us....
 
I agree somewhat with all of this. But if this were all the case.. then why has it taken how many years for every LTL to actually go this route? And still yet every LTL has new trucks, bunch of drivers on their board, etc..

Somewhere down the line it becomes not worth it
 
Road_Warrior1 said:
I agree somewhat with all of this. But if this were all the case.. then why has it taken how many years for every LTL to actually go this route? And still yet every LTL has new trucks, bunch of drivers on their board, etc..

Somewhere down the line it becomes not worth it
Click to expand...
I believe LTL trucking companies ❤️ high fuel prices because they can pass that cost on to the customers with excellent profit. LTL companies get a surcharge on every shipment, The shiney wheels company only gets a set surcharge for the whole load
 
I work for A Duie Pyle. We are a northeast regional carrier. The company actively got rid of purchased transportation. Part cost. Mainly reliability issues. Never knew when they would show up. Most could not haul haz-mat. Lots of service failures. Granted, the big majority of freight we haul is next day service. Cant depend on that with contractors.
 
xeastend said:
I work for A Duie Pyle. We are a northeast regional carrier. The company actively got rid of purchased transportation. Part cost. Mainly reliability issues. Never knew when they would show up. Most could not haul haz-mat. Lots of service failures. Granted, the big majority of freight we haul is next day service. Cant depend on that with contractors.
Click to expand...
That's why there are still linehaul drivers in LTL companies because of the reliability and time sensitive freight
 
Jeff said:
That's why there are still linehaul drivers in LTL companies because of the reliability and time sensitive freight
Click to expand...
Correct. Our owner/ceo has said on multiple occasions Pyle does not sell a product. We sell and provide service. Customers depend on the service. Get it there on time and damage free. And the opinion is that ALL freight is time sensitive. Not just the guarantees
 
Jeff said:
I believe LTL trucking companies ❤️ high fuel prices because they can pass that cost on to the customers with excellent profit. LTL companies get a surcharge on every shipment, The shiney wheels company only gets a set surcharge for the whole load
Click to expand...
I use to notice that on my DR's back in the day. Some had substantial fuel surcharges. Stuff your average driver doesn't know when managers tell them in meetings that mty miles are killing us.
 
Jeff said:
Been thinking. Say you have 21 or 22 shipments on a trailer and that trailer has say 3k dollars worth of fuel surcharge freight in it, then say if you loaded that 22 bills on a Shiny wheels 53 footer and added 18 more bills for @ 4500 in fuel surcharges alone and pay the shiny wheels say 3k to move it up the road I suspect an outfit could make alot on surcharges alone and never have to put a road driver in a seat.
Click to expand...
We have a winner! Post of the week/month.

Anyone who pays ANY attention to quarterly reports (for stockholders) knows that fuel prices contribute substantially to bottom line.
Up-good, Down bad.
 
Jeff said:
Been thinking. Say you have 21 or 22 shipments on a trailer and that trailer has say 3k dollars worth of fuel surcharge freight in it, then say if you loaded that 22 bills on a Shiny wheels 53 footer and added 18 more bills for @ 4500 in fuel surcharges alone and pay the shiny wheels say 3k to move it up the road I suspect an outfit could make alot on surcharges alone and never have to put a road driver in a seat.
Click to expand...
The only problem with the math is if you’re comparing one 28’ pup to one 53’ van. You have to figure that our road drivers pull a set of pups which equals 56’ of space. Also the decking capability of our trailers is better than the vans of most contractors. Usually can only use the deck platforms on the vans vs. multiple layers of decking beams on our equipment. I agree with the theory of the fuel surcharges in principle, but it would be interesting to see the actual costs to FedEx of PT compared to our equipment.
 
Purple Hammer said:
The only problem with the math is if you’re comparing one 28’ pup to one 53’ van. You have to figure that our road drivers pull a set of pups which equals 56’ of space. Also the decking capability of our trailers is better than the vans of most contractors. Usually can only use the deck platforms on the vans vs. multiple layers of decking beams on our equipment. I agree with the theory of the fuel surcharges in principle, but it would be interesting to see the actual costs to FedEx of PT compared to our equipment.
Click to expand...
We would have to get top secret clearance for that! Unless Fred starts acting like Joe. Then we could find it in his garage.
 
Purple Hammer said:
The only problem with the math is if you’re comparing one 28’ pup to one 53’ van. You have to figure that our road drivers pull a set of pups which equals 56’ of space. Also the decking capability of our trailers is better than the vans of most contractors. Usually can only use the deck platforms on the vans vs. multiple layers of decking beams on our equipment. I agree with the theory of the fuel surcharges in principle, but it would be interesting to see the actual costs to FedEx of PT compared to our equipment.
Click to expand...
Well I I did say 3k in surcharges for the pup and 4500 for the fully loaded 53 footer with 18 more bills on it than the 28. So I was only allowing 1500 insted of 3k for a trailer that is only 3 feet short of the van so I was being real conservative. It could have been as high as 5500 or so for the full van of surcharges.
 
BIG R GUY said:
With the US Dept of Energy setting the weekly fuel surcharge rates on average fuel price, and every LTL carrier all having different base rates and discounts for literally every shipper, I think even me,(Ted) can see they are using the surcharge to bolster their bottom line. PT, I would say gets so much per mile to move a trailer, plus fuel surcharge. The rest goes to the carrier to cover costs of handling, pickup and delivery and so on. I am quite sure every LTL makes more profit using PT for linehaul, except they cannot yet figure out how to use them for all nightly linehaul moves, and incorporate it into a system that thrives mostly on overnight moves of 400-500 miles or lessI
Click to expand...

Is the cost of mirrors factored into this?
 
You must log in or register to reply here.
Top