ISP question spots

[Exec32]

How do you guys handle spots in your defined areas.
Do you service them, and what equipment do you use? Do you sub contract, how much does it cost you?

 

[UpstateNYUPSer(Ret)]

Spots? I usually pretreat and soak overnight.

 

[It will be fine]

How do you guys handle spots in your defined areas.
Do you service them, and what equipment do you use? Do you sub contract, how much does it cost you?

I sub them to Linehaul contractors. They pay me for the rights. The stop stays on my contract and they get to service it. As a subcontract fedex pays them the spot charge.

 

[Exec32]

I sub them to Linehaul contractors. They pay me for the rights. The stop stays on my contract and they get to service it. As a subcontract fedex pays them the spot charge.

There is no benefit in servicing them yourself? Let's say the spot takes 300 delivered and 400+ pickup.

 

[It will be fine]

There is no benefit in servicing them yourself? Let's say the spot takes 300 delivered and 400+ pickup.

Only if you're already running tractors. The Linehaul contract isn't that great. When you start moving a lot of pieces fedex will only pay the spot charge not the P&D rate. The ISP agreement slashes piece payment so much it's not valuable to run under that contract either. If you have a stop like that you could you use to base a straight truck route off of, but I wouldn't add a tractor.

 

[Exec32]

Only if you're already running tractors. The Linehaul contract isn't that great. When you start moving a lot of pieces fedex will only pay the spot charge not the P&D rate. The ISP agreement slashes piece payment so much it's not valuable to run under that contract either. If you have a stop like that you could you use to base a straight truck route off of, but I wouldn't add a tractor.

I planned on using a straight truck and absorb most in town stops, send other P&D trucks to cover rural and residential. Do you have an average stop and package number for each truck to meet your per truck revenue. I know it should be based on your per package and per stop rate you negotiated, right?