If customers thought they got screwed last Year..........

Discussion in 'FedEx Discussions' started by TeamLift, Sep 22, 2014.

  1. TeamLift

    TeamLift Active Member

    My terminal has only been open about 3 years and we are already undergoing a major expansion. Right now between HD and Ground we can sort about 15000 packages per hour, once construction is finished that number jumps to 45000 per hour.

    But it's not going to make a bit of difference, we are already shorthanded 4 or 5 package handlers a day on the HD side, supervisors have been promoted to the hub side with no one to replace them and get this, I asked one of the remaining supervisors if they were going to hire more temps than they did last year, which was way understaffed, and they said we aren't going to hire any.

    What ! yea that's right we found out it was cheaper to turn the supplemental routes into actual routes and now its up to the contractor to hire any additional help they may need.

    Cheaper for FedEx means the customer loses again. So they finally gave a core charge for most all routes, but whatever the contractor gained in route money he will lose paying for another driver. I know they make about 3 times as much during peak but still, paying drivers, fuel and rentals will null any money they might have made. Contractors will try to get by with the least amount of help which means your package will either go for a ride or sit at the terminal and help bring in the new year. Merry Christmas from Fred.
  2. STFXG

    STFXG Well-Known Member

    What are you talking about? If the contractor was running a supplemental then he was already paying all the expenses of another driver. If the route got approved he is making more, but his expenses aren't higher.

    Peak was the smoothest I've ever seen last year at my building. Plenty of staff. I look forward to December every year. Get some bills paid off.
  3. El Duderino

    El Duderino New Member

    I could be wrong, but I thought the ISP was only contracted to take a set maximum of stops per day. Anything additional of course is extra cash, but they aren't required to take it and the freight becomes FEG's problem.
  4. STFXG

    STFXG Well-Known Member

    The new peak program really isn't that great again this year. I can't imagine ISPs wanting to take on the additional volume. Should be interesting.
  5. TeamLift

    TeamLift Active Member

    The point I was making was that at my hub contractors used to have a say as to how much of the overage at peak they wanted to assume, the rest fell on FedEx to hire temps, pay them, rent vans and so on. Now since they have thrown a few more pennies at the contractors for the supplementals they will have to assume all of it even if they don't want it past a certain point. If you get 75 more stops than you want, tough, hire the temps yourself. With rookie drivers driving new rental vans and bringing back 40 packages a day I don't know if it will be worth it. 3 years ago when I was hired as a temp there were 18 of us hired in just one day. Now there will be none.

    And no, Ground does nothing at peak, their volume doesn't change much at all. At a certain point the larger packages will be diverted to ground that we normally would handle in HD, so that they can cram as much in our vans as possible, but that's about all for Grounds contribution.
  6. STFXG

    STFXG Well-Known Member

    Grounds volume doesn't change? You must be in the only building in the country where that happens. Or you just don't know.

    Back in the day we used to have thresholds. They got rid of those. We are responsible for our entire PSA. In ISP stations they have a negotiated threshold. My building has never run terminal temps. Contractors have always hired on what was needed for coverage.

    And ground takes HD diversion every year. Not just the big stuff, a lot of volume.

    I know 1 HD contractor with 3 PSAs that brought on 7 drivers for peak last year.

    Always an entertaining time of the year.
  7. TeamLift

    TeamLift Active Member

    Ground is still back at the terminal roughly the same time even during peak, never seen ground out till 10.00 pm or later.