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This Year the PURPLE PROMISE DID NOT HAPPEN
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<blockquote data-quote="barnyard" data-source="post: 1072796" data-attributes="member: 13921"><p>It would seem like Fed Ex is looking at the trucking industry as a whole and saying, "Heck, we could do that." </p><p></p><p>Way back when, trucking was a regulated industry. It paid very well and was very hard to get into.</p><p></p><p>Then some geniuses decided that trucking needed to be deregulated and it was. Thanks to deregulation, rates were cut and they were cut at the expense of driver pay. In real dollars, OTR drivers have lost money since the late 80's. In 1988, I used to haul hay for some local farmers. I was paid $2/loaded mile. Fast forward to 2012 and I can have the same hay hauled for darn near the same money including FSC and someone would tell me they were well paid for that.</p><p></p><p>Fred is a smart student of history. He knows there is always someone around that will do it cheaper. As long as he pays just a little bit more than what a retail mallrat makes, he will have people standing in line to drive. There is nothing anyone can do about it because he has made it legislatively impossible for the people he is hurting the most, to do anything about it.</p><p></p><p>You can say it will not work all day long, but Schneider National, Werner Enterprises, Swift and a host of others are managing to make money in spite of 100-125% driver turnover. That kind of turnover is going to make it easier for UPS to pick up some accounts, but there will always be shippers that care about price over everything. It would appear that is who Fred wants to appeal to.</p><p></p><p>It is a sucky truth, but there you go.</p></blockquote><p></p>
[QUOTE="barnyard, post: 1072796, member: 13921"] It would seem like Fed Ex is looking at the trucking industry as a whole and saying, "Heck, we could do that." Way back when, trucking was a regulated industry. It paid very well and was very hard to get into. Then some geniuses decided that trucking needed to be deregulated and it was. Thanks to deregulation, rates were cut and they were cut at the expense of driver pay. In real dollars, OTR drivers have lost money since the late 80's. In 1988, I used to haul hay for some local farmers. I was paid $2/loaded mile. Fast forward to 2012 and I can have the same hay hauled for darn near the same money including FSC and someone would tell me they were well paid for that. Fred is a smart student of history. He knows there is always someone around that will do it cheaper. As long as he pays just a little bit more than what a retail mallrat makes, he will have people standing in line to drive. There is nothing anyone can do about it because he has made it legislatively impossible for the people he is hurting the most, to do anything about it. You can say it will not work all day long, but Schneider National, Werner Enterprises, Swift and a host of others are managing to make money in spite of 100-125% driver turnover. That kind of turnover is going to make it easier for UPS to pick up some accounts, but there will always be shippers that care about price over everything. It would appear that is who Fred wants to appeal to. It is a sucky truth, but there you go. [/QUOTE]
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This Year the PURPLE PROMISE DID NOT HAPPEN
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