To the ISPs

Discussion in 'FedEx Discussions' started by FedEx GT, Jun 29, 2015.

  1. FedEx GT

    FedEx GT Active Member

    if you could give me some information (if it isn't confidential anyways) I would appreciate it. I have a general knowledge of the transition but I have heard a few different interpretations on a couple parts. I have over the 5 PSA criteria so theoretically I am "safe". I have been told that there are no two contractors in the same zip, if that is true how does it work with bulk trucks that have stops in your area? Are they dissolved, are you encouraged to trade, etc.
    Also if the above mentioned is correct how is it "really" determined who services a set zip code in regards to two contractors (Ground/HD) that are currently in the same zip code.
    My main question is what is the definition of safe, because I highly doubt I will be able to keep all my 5 zip codes and be "given" all the HD work there too. If the HD guy doesn't want to be bought out or trade, who from you guys experience is normally awarded the contracts to the area?

    I have heard nothing that my state is going to that model but I do want to educate myself so I know what my options are and what to anticipate when ever it does.
     
  2. Crozz

    Crozz Member

    It's all rumors atm anyone that has flipped won't leak info be nice to know facts. I'm still in the IC world and I've heard the same rumors. If it's a fact about the same zip it's going to take corporations between both contractors and if they can't figure it out I would assume fedex and your TM will decide for you guys just a guess.
     
  3. It will be fine

    It will be fine Well-Known Member

    I don't think they are mandating owning both HD and Ground yet. They just incentivize it. They told us recently there aren't any plans to force us to own both, but they encourage it.
    When we transitioned zips were still split up with bulk and random pickups and stuff. When one of those stops move out you lose the address to the contractor that owns the balance of the zip code.
     
  4. Crozz

    Crozz Member

    It's an incentive now, but their is no such thing as home delivery anymore they are phasing it completely out promise. You will see the honeycomb as one contractor in an area not 2. Your terminals will consist of 5-10 contractors depending on how big it is and they will want each contractor to have their 15-25% of that terminal. No cris crossing or jumping over each other. In 5 years your 5 routes will blow up to 10-15 routes they want contractors ready for the growth and they know they have to fix multiple contractors in one area. Their goal is to give incentives no, but later you will not have choice.
     
  5. Crozz

    Crozz Member

    Well we now have 3 more states flipping to ISP New York, New Jersey, and Pennsylvania. Hopefully more to be announced soon.
     
  6. Cactus

    Cactus Just telling it like it is

    Well that's real nice.

    Think your semi drivers will be able to keep their trucks on the road and not in the ditch?

    You need to look at Ground's FMCSA scores before to start painting rosy pictures.
     
  7. MAKAVELI

    MAKAVELI Well-Known Member

  8. Crozz

    Crozz Member

    Kansas is not ISP, I honestly thought they would have been the next state to flip.
     
  9. MAKAVELI

    MAKAVELI Well-Known Member

    Given this decision, it won't be long.
     
  10. NYCFXG

    NYCFXG Member

    Just got our paperwork yesterday. The worst part was the halting of sales. There were 2 or 3 single owner operator guys that were getting out that now look like they are :censored3:. My terminal is enormous and isn't co-located. The whole situation feels kinda strange. It looks like I can cover it with my stop totals instead of PSA total. There are a lot of guys in my terminal that were split from their original terminals to create the new terminal. They are in trouble now and don't look like they can transition in either of their terminals.

    Can anyone comment on the drop in prices that occur during the next year before the process is completed? I really feel like I have no choice but to buy up my neighbors who are too small to transition.
     
  11. Cactus

    Cactus Just telling it like it is

    Heartbreaker.
     
  12. Crozz

    Crozz Member

    It's sucks for the singles but the writing on the wall has been up for a while. On myground biz go look up the organ transition lots of good info.
     
  13. Bounty

    Bounty Active Member

    Can Any singles out there that joined with other singles give me some feed back? Is it worth it or should I just give up and get out? I
     
  14. It will be fine

    It will be fine Well-Known Member

    It all depends on who will be in charge. There are several corporations with multiple shareholders of former single van contractors in our terminal. Some are working very well, others have everyone upset and some have gone to court to fight amongst themselves for control. If there is someone all of the singles trust it can work. If you decide to go that way get a lawyer, make legal agreements and make sure everyone is on the same page going in. The groups that aren't working didn't spend enough time and money up front to properly organize their corporations.
    As far as FedEx is concerned whoever is the ISP will be the boss with all the control so choose that person wisely.
     
  15. Bounty

    Bounty Active Member

    My other concern is, every time I jump through the obstacles fedex puts in front of me they set up another bigger obstacle. Will isp work or will I regret staying in a couple of years because of legal bs.
     
  16. It will be fine

    It will be fine Well-Known Member

    I've told other guys going through transition it doesn't get any better. If you're unhappy now and there's a good offer on the table to sell, take it. If you're not buying and not going to be the one in charge of a merger you'll likely be unhappy. Best case if you're a shareholder driver is less pay, less responsibility and rapidly growing equity. You'll eventually get back to the same pay you're getting now, but a lot of future revenue increases will go towards maintaining capacity. Depending on how long you plan on staying, the equity stake increasing could be worth it.
     
  17. Bounty

    Bounty Active Member

    I guess the other problem is getting out after you join
     
  18. burrheadd

    burrheadd Superstar

    Sell sell it all
    Move to Uruguay
    Grow weed
    Become disgustingly rich!!!
     
  19. robdabanks

    robdabanks Member

    How long do the transitions usually take?
     
  20. It will be fine

    It will be fine Well-Known Member

    Write it in the agreement you make.

    About a year. I think we got about 5-6 months to get up to scale, then a few months to operate, then a few months to negotiate before it goes in effect.