Buying a Fedex Ground Route

Exec32

Well-Known Member
As someone who contracted to make deliveries, it IS your job to locate the address. As far as taping boxes, it is better for you to just tape it yourself instead of waiting on QA, and same for complaints. If you did something wrong, or your driver, in order to protect your contract, you should follow up on complaints. And if your driver is chosen randomly for a drug test, as is required by law, it is up to you to ensure compliance. Some meetings may be voluntary, but how do you expect to know about changes to procedures without notification?

If the contract allows for all those things and doesn't set up separate compensation for them, you are obligated to provide them without extra compensation. All of those things that you do to make it easier or faster for yourself are on you, even if it saves fedex money. If you want, give every box with a bent corner or small tear back to fedex if you want. But good luck come renewal.
Demac1 and bacha29,
You can't be serious. Is their a relationship with X created in the contract, with responsibilities on both sides?
If you can explain them, identify them, and understand them then you would understand my point.
I do know what these responsibilities are, and I will respond to your post after you are able to explain those responsibilities, otherwise I'll be waiting my time.
 

bacha29

Well-Known Member
Demac1 and bacha29,
You can't be serious. Is their a relationship with X created in the contract, with responsibilities on both sides?
If you can explain them, identify them, and understand them then you would understand my point.
I do know what these responsibilities are, and I will respond to your post after you are able to explain those responsibilities, otherwise I'll be waiting my time.
You alone cannot change the business model or the mind set behind it If you are still IC the ISP conversion might be more to your liking. If you are already ISP you had plenty of time to study the trappings of it and decide for yourself whether or not you wanted the deal.The ongoing out of court settlements of the major class actions should slow the filing of new class actions for the foreseeable future giving X more freedom to whatever it wants to the remaining ISP's with little worry regarding new litigation. Instead of carping about the current terms of your operating agreement your time would be better spent finding a buyer for your routes . The indisputable fact is that you have two choices. Either you make the best of the terms that are handed to you or get out as soon as possible. Why do I say that?. Right now X has 3.5 billion in cash but also 13.5 billion in debt. That's too much unbalanced in the eyes of the investment banks. They have bought up nearly all of the available competition out there . The economy is slowing , in Europe so much so that interest rates are trading in negative territory . As IWBF pointed out organic growth will slow possibly more than X expected. What does it mean? It means that the disparity in the value X demands from it's IC/ISP/CSP"s and the value it offers in return will continue to grow wider. So stop waffling and get off you butt and make a decision. You're always waaaing about your lack of control and ability to make your own decisions. Here's your chance to make the most important one. Deal with the situation or get the hell out out. There is no third option.
 

Exec32

Well-Known Member
Believe it or not I agree with almost everything you stated.
I am not however trying to change the model or mind set behind this scheme. I am using this forum to openly discuss the fallacies involved with X and this contracted relationship. I know what the future holds, I do have a plan to move forward, however in the mean time I believe discussing these problems would help our community of contractors.
By the way I don't carry any notes,,,,
7 trucks all paid for...
 

dmac1

Well-Known Member
Believe it or not I agree with almost everything you stated.
I am not however trying to change the model or mind set behind this scheme. I am using this forum to openly discuss the fallacies involved with X and this contracted relationship. I know what the future holds, I do have a plan to move forward, however in the mean time I believe discussing these problems would help our community of contractors.
By the way I don't carry any notes,,,,
7 trucks all paid for...

If your trucks are all paid for, you likely spend more on maintenance than if you had new vehicles. At some point, new vehicles will be needed. But if/when fedex cancels your contract or non-renews, at least you won't be stuck.
 

Exec32

Well-Known Member
If your trucks are all paid for, you likely spend more on maintenance than if you had new vehicles. At some point, new vehicles will be needed. But if/when fedex cancels your contract or non-renews, at least you won't be stuck.
Are you saying new vehicles don't come with maintenance cost?
Of course not.. They come with maintenance cost, a huge note payment, accelerated depreciation, and the new technology make up of these sensitive trucks make them very prone to continuous repairs and increased cost. Give me a 1999-2006 international any day to those pieces of crap. Comparatively speaking a new motor or transmission each year for each of my vehicles will cost less than the yearly note for a new vehicle.
I have had less problems with the old cummins and Allison than other contractors with new equipment.
Your right when they do decide to not renew it won't effect me in the least, I don't even have to sell my routes, matter of fact if I was an incompetent lazy stupid contractor I wouldn't even be on this forum expressing my views. I have something many of you do not, a set of balls....
Nothing personl
 

bacha29

Well-Known Member
Are you saying new vehicles don't come with maintenance cost?
Of course not.. They come with maintenance cost, a huge note payment, accelerated depreciation, and the new technology make up of these sensitive trucks make them very prone to continuous repairs and increased cost. Give me a 1999-2006 international any day to those pieces of crap. Comparatively speaking a new motor or transmission each year for each of my vehicles will cost less than the yearly note for a new vehicle.
I have had less problems with the old cummins and Allison than other contractors with new equipment.
Your right when they do decide to not renew it won't effect me in the least, I don't even have to sell my routes, matter of fact if I was an incompetent lazy stupid contractor I wouldn't even be on this forum expressing my views. I have something many of you do not, a set of balls....
Nothing personl
Indeed, motorized transportation equipment are among the fastest depreciating pieces of equipment known to the U.S.economy and is one of the leading cost factors X divested itself of. As for the older equipment I agree the old 7.3L Ford/IH, the old 5.9 Cummins along with the Allison 1000 and 2400 's were the best friends
a X contractor ever had. If the exact maintenance requirements were met as set forth by the manufacturers you could get a half a million miles out of them before overhaul or replacement. As for the newer generation equipment many independent garage owners refuse to work on them. Not because of a lack of knowledge but rather the never ending headaches that goes with having to fix the same things over and over again not to mention the suspension issues due to constant overloading which will get worse as X continues to steal more and more motor freight off the LTL's and puts it on these one ton chassis"s.
 

dmac1

Well-Known Member
Are you saying new vehicles don't come with maintenance cost?
Of course not.. They come with maintenance cost, a huge note payment, accelerated depreciation, and the new technology make up of these sensitive trucks make them very prone to continuous repairs and increased cost. Give me a 1999-2006 international any day to those pieces of crap. Comparatively speaking a new motor or transmission each year for each of my vehicles will cost less than the yearly note for a new vehicle.
I have had less problems with the old cummins and Allison than other contractors with new equipment.
Your right when they do decide to not renew it won't effect me in the least, I don't even have to sell my routes, matter of fact if I was an incompetent lazy stupid contractor I wouldn't even be on this forum expressing my views. I have something many of you do not, a set of balls....
Nothing personl

You must be aware that as a truck gets older, it requires MORE maintenance, I never said a new vehicle requires no maintenance. The difference is what matters. When the cost of excess repairs and vehicle rental costs gets close to the cost of the payment on a new vehicle, it can make sense to buy a replacement. And the depreciation saves on taxes. The taxes saved on depreciation and maintenace can in some cases make up for the payment. Each contractor needs to decide personally. But my point was that since fedex can unilaterally void the contract or non-renew, it is good that you have no debt if it happens to you, even if a new vehicle actually saves you money.
 

dmac1

Well-Known Member
Quick question: Suppose one of your drivers abuses the heck out of one of your trucks. Do you guys go after him/her for any costs beyond basic maintenance?

That would be an illegal deduction from wages. You just fire the guy. I had a driver who would shift from reverse to drive while still moving backward, and he was gone as soon as I got a replacement.
 

UpstateNYUPSer(Ret)

Well-Known Member
That would be an illegal deduction from wages. You just fire the guy. I had a driver who would shift from reverse to drive while still moving backward, and he was gone as soon as I got a replacement.

So you would have to eat the cost? Would small claims court be an option or simply not worth pursuing?
 

Exec32

Well-Known Member
You must be aware that as a truck gets older, it requires MORE maintenance, I never said a new vehicle requires no maintenance. The difference is what matters. When the cost of excess repairs and vehicle rental costs gets close to the cost of the payment on a new vehicle, it can make sense to buy a replacement. And the depreciation saves on taxes. The taxes saved on depreciation and maintenace can in some cases make up for the payment. Each contractor needs to decide personally. But my point was that since fedex can unilaterally void the contract or non-renew, it is good that you have no debt if it happens to you, even if a new vehicle actually saves you money.
Point taken. You are point on with the debt. I just don't have confidence in the contract, especially the terms, length, to invest or over leverage myself only to become overly reliant on X.
New vehicles though I have found are less reliable than the older models. Sounds a bit ironic but something about all the new technology used to increase mileage and reduce emissions.
 

Exec32

Well-Known Member
There are very few deductions allowed for employers when it comes to pay. Error for overpayment, and no call no show for salaried.
Some contractors actually believe they can deduct for property damage or complaints, and even disputed deliveries. They will find that DOL will rip them a new one.
 

Code 82 Approved

Titanium Plus+ Level Member with benefits!
There are very few deductions allowed for employers when it comes to pay. Error for overpayment, and no call no show for salaried.
Some contractors actually believe they can deduct for property damage or complaints, and even disputed deliveries. They will find that DOL will rip them a new one.
Pay a bonus to not wreck, not have early or late pickups and complaints. Put it in your handbook, have them sign the disclaimer at the end of the handbook, and deduct-away that bonus for each infraction.
If the bonus is never payable for months or a year, time to replace the guy.

Good drivers get $200 extra/month for not screwing up.
 

OrioN

double tap o da horn dooshbag
Check this out:

20160920_091416.jpg


Thought these p500s freightliners were sturdy...

20160920_091429.jpg


20160920_091448.jpg
 

bacha29

Well-Known Member
How many miles on that thing? That's insane.
What do you expect? It's built on the chassis of a 3/4 ton pickup.What's worse is that even more motor freight stolen off the LTL's is going on them. X has made no attempt to hide that fact as well as the fact that it's this kind of stuff that's is responsible for almost all of it's growth in revenue and profits. As a result trucks that are set up according to X specifications are being pulverized at the expense of contractors. Pal you're going to get yourself killed in that damn thing and it's all for the benefit of someone else.
 

McFeely

Huge Member
What do you expect?

I expect pretty much what the picture showed. Still insane and still a safety hazard.

It looks like that's the front axle? Imagine that leaf pack going out while you're driving it and also imagine how much poop you just put in your pants when it happened. I'll never forget the poopy-pants feeling I had when the brakes on my Reach went out.
 

OrioN

double tap o da horn dooshbag
Yup, Mcfeely, front driver side... i was thinking how fast the driver was going to hit a pothole that big to snap it:onitswaysmiley:

I was in the shop to get a leaking tire valve stem replaced... saw that thing!

The newer ford utilimaster P700 stepvans aren't built well either... transmissions breaking all the time.~dunno if those drivers are abusing them or just the quality of Ford is going downhill.
 

bacha29

Well-Known Member
Yup, Mcfeely, front driver side... i was thinking how fast the driver was going to hit a pothole that big to snap it:onitswaysmiley:

I was in the shop to get a leaking tire valve stem replaced... saw that thing!

The newer ford utilimaster P700 stepvans aren't built well either... transmissions breaking all the time.~dunno if those drivers are abusing them or just the quality of Ford is going downhill.
Chassis too light for a 700 body.
 
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