Will FedEx terminate my ISP contract?

Acee Pokers

New Member
Hi all! I researched all the "Owning an ISP" threads and searched for reliable information on this forum, but didn't find anything specifically addressing the termination process.

A little vague background information: I own 5-10 HD routes with anywhere from 800-1000 stops per day. Recently, I've had issues with drivers calling in sick, quitting, the works, which has resulted in a few days of abandoned packages and my requiring FedEx to use their couriers to help deliver the rest of the packages.

My question is: At what point will FedEx put my routes up on the board? What will cause them to terminate my ISP, and is there a standard process that I can expect before my routes are "taken away"?

Thank you all in advance.

*Edited a typo.
 

SmithBarney

Well-Known Member
I imagine most of this information is probably in your contract...and contracts can vary from provider to provider.
I believe you are supposed to have contingency plans in place for missing workers/vehicles...
 

It will be fine

Well-Known Member
Hi all! I researched all the "Owning an ISP" threads and searched for reliable information on this forum, but didn't find anything specifically addressing the termination process.

A little vague background information: I own 5-10 HD routes with anywhere from 800-1000 stops per day. Recently, I've had issues with drivers calling in sick, quitting, the works, which has resulted in a few days of abandoned packages and my requiring FedEx to use their couriers to help deliver the rest of the packages.

My question is: At what point will FedEx put my routes up on the board? What will cause them to terminate my ISP, and is there a standard process that I can expect before my routes are "taken away"?

Thank you all in advance.

*Edited a typo.
What do you mean by Fedex using their couriers?
Find a way to get other contractors to take the stops you can't cover. Have a plan to get back on track and management will probably be ok if you execute. The contract says they can terminate if a significant number of packages are not serviced for a single day. It's up to local discretion if they want to send your file up.
At renewal time they can post your route for bid if your service is under a level I can't recall, you can look it up.
 

dmac1

Well-Known Member
If they have even made a mention of service problems, that is their notice to you, especially if you were asked to meet with the manager in the office and they gave you ANYTHING in written form. They will have documented that meeting and called it giving you notice.

If they did talk to you, you may come in any day 30 days after that 'notice' and be told that your contract is cancelled. You will then have the right to appeal it in arbitration, if that is still in the contract. But you won't have any income during that time, but you will still have truck payments. And filling for arbitration will cost you, plus the cost of an attorney.

They also have the option to permanently take away some of your work area, which could leave you below the minimum needed stop count from what I gather about the ISP contract.

If they like you, they'll let you get away with just about anything with no worries.
 

Turdferguson

Just a turd
Hi all! I researched all the "Owning an ISP" threads and searched for reliable information on this forum, but didn't find anything specifically addressing the termination process.

A little vague background information: I own 5-10 HD routes with anywhere from 800-1000 stops per day. Recently, I've had issues with drivers calling in sick, quitting, the works, which has resulted in a few days of abandoned packages and my requiring FedEx to use their couriers to help deliver the rest of the packages.

My question is: At what point will FedEx put my routes up on the board? What will cause them to terminate my ISP, and is there a standard process that I can expect before my routes are "taken away"?

Thank you all in advance.

*Edited a typo.

They are contacting the other contractors even as we speak to divvy up your routes
 

burrheadd

KING Of GIFS
Hi all! I researched all the "Owning an ISP" threads and searched for reliable information on this forum, but didn't find anything specifically addressing the termination process.

A little vague background information: I own 5-10 HD routes with anywhere from 800-1000 stops per day. Recently, I've had issues with drivers calling in sick, quitting, the works, which has resulted in a few days of abandoned packages and my requiring FedEx to use their couriers to help deliver the rest of the packages.

My question is: At what point will FedEx put my routes up on the board? What will cause them to terminate my ISP, and is there a standard process that I can expect before my routes are "taken away"?

Thank you all in advance.

*Edited a typo.

Gonna need to turn your keys in in the morning
 

STFXG

Well-Known Member
Have they issued you an opportunity to cure yet? You need to buddy up with other contractors and get help. Don't rely on FedEx to fix your problems. They like you to be independent.
 

bacha29

Well-Known Member
Hi all! I researched all the "Owning an ISP" threads and searched for reliable information on this forum, but didn't find anything specifically addressing the termination process.

A little vague background information: I own 5-10 HD routes with anywhere from 800-1000 stops per day. Recently, I've had issues with drivers calling in sick, quitting, the works, which has resulted in a few days of abandoned packages and my requiring FedEx to use their couriers to help deliver the rest of the packages.

My question is: At what point will FedEx put my routes up on the board? What will cause them to terminate my ISP, and is there a standard process that I can expect before my routes are "taken away"?

Thank you all in advance.

*Edited a typo.
If you can clearly demonstrate that you have in the past taken concrete steps to develop the required route redundancy in the form of extra trucks and trained manpower on standby, that can go a long way toward saving your hide. However if you didn't do that instead took the money that you would have spent on those reserve assets and stuffed down your pocket then it will be very hard to prove that what happened to you was outside your control.
 

dvalleyjim

Well-Known Member
If your at my terminal, ISP's fail all the time and get more areas. Not an option in my day. Your contract would not get renewed. I guess X is just glad to have all those investors that can't run a business.
 

12yearsaslave

Well-Known Member
AS STFXG mentioned, you will get an OTC letter. Which gives you 30 days to fix the current issue. What that means is that you lose your exclusive rights to negotiate for the CSA. At end of agreement the CSA will be posted in the station. Still at that point it is up to contractor relations/ district and local management to renew your agreement. As long as you stop failing and fix recruitment no one at FedEx wants to terminate your agreement. It's too much of a legal hassle.
 

Jkloc420

Do you need an air compressor or tire gauge
Hi all! I researched all the "Owning an ISP" threads and searched for reliable information on this forum, but didn't find anything specifically addressing the termination process.

A little vague background information: I own 5-10 HD routes with anywhere from 800-1000 stops per day. Recently, I've had issues with drivers calling in sick, quitting, the works, which has resulted in a few days of abandoned packages and my requiring FedEx to use their couriers to help deliver the rest of the packages.

My question is: At what point will FedEx put my routes up on the board? What will cause them to terminate my ISP, and is there a standard process that I can expect before my routes are "taken away"?

Thank you all in advance.

*Edited a typo.
oh they are going to terminate this contract so fast, it is coming.
 

NYCFXG

Well-Known Member
Hi all! I researched all the "Owning an ISP" threads and searched for reliable information on this forum, but didn't find anything specifically addressing the termination process.

A little vague background information: I own 5-10 HD routes with anywhere from 800-1000 stops per day. Recently, I've had issues with drivers calling in sick, quitting, the works, which has resulted in a few days of abandoned packages and my requiring FedEx to use their couriers to help deliver the rest of the packages.

My question is: At what point will FedEx put my routes up on the board? What will cause them to terminate my ISP, and is there a standard process that I can expect before my routes are "taken away"?

Thank you all in advance.

*Edited a typo.

How new are you? If you are asking this question you must be fairly new. I can't imagine a contractor that has been working longer than a few months asking this question.

I am at 20+ employees and 12-14 trucks a day on the ground side. I know exactly what it would take to lose my routes. I have only been in the business for 3 years. Hiring is my top priority. I am always adding drivers, if not every week, every other week. I learned years ago that if you make profit your only priority, you will lose your routes.
 

bacha29

Well-Known Member
How new are you? If you are asking this question you must be fairly new. I can't imagine a contractor that has been working longer than a few months asking this question.

I am at 20+ employees and 12-14 trucks a day on the ground side. I know exactly what it would take to lose my routes. I have only been in the business for 3 years. Hiring is my top priority. I am always adding drivers, if not every week, every other week. I learned years ago that if you make profit your only priority, you will lose your routes.
Indeed. Profit, that's what you give the government. What you live on is your cash flow.
 

12yearsaslave

Well-Known Member
Let me update this. Once you get an OTC is up to the station senior manager to renew your agreement once it runs out. So make sure they like you, otherwise you will lose it.
 

bbsam

Moderator
Staff member
Let me update this. Once you get an OTC is up to the station senior manager to renew your agreement once it runs out. So make sure they like you, otherwise you will lose it.
Oh, I'm not sure about that. Moving on from contractors can cause messes higher than station level. They may have a say, but I doubt it's as much as you give them credit for.
 
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