7 days will be here after peak 2019

bacha29

Well-Known Member
its a fact from the big shots....fedex hd will be running 7 days a week after peak 2019
Even in the small rural town I live in the USPS is running around here on Sundays. With no labor contract to abide by and routes manned by powerless contractors and their even more powerless box oxen there's really nothing standing in the way of a 7/365 operation . Problem is given the many many many days when trucks will be going out with a half a load (or less) on them contractor margins will no doubt be under heavy pressure.
Will XG worry about that? Of course not. Why not? They never tried to hide that fact that they are not in the enterprise building business for contractors.

No surprise there because XG never has and never will grant contractors enough power to have what is recognized as having a truly independent business.
 

bacha29

Well-Known Member
* that. I'll sell out if that's the case
The time to sell may never better than right now. Settlement pressures combined with compressed margins and wage inflation will make the sharp and astute investor class less interested in buying your contract.
Consider this as well. First they got rid of the sole proprietor contractors, followed by the registered K-1 partnerships and the LLC's Now all you have left are the S-Corps and C-Corps. Just give it a little more time and S-Corps will be eliminated leaving only the people Fat Freddy has actually wanted ever since he bought RPS.... That being the absentee investor class C-Corp's financially strong enough to crush any attempts to unionize their work force giving what he's long desired......a cheap powerless nonunion labor force lasting long into perpetuity.
 

It will be fine

Well-Known Member
* that. I'll sell out if that's the case
You’re too late. It’d be a terrible move to buy in right now. Anyone willing to pay what you want for it will probably be smart enough to avoid the current mess. Ride out the smartpost and HD integration and then bail in a few years.
 

instiches

Well-Known Member
You’re too late. It’d be a terrible move to buy in right now. Anyone willing to pay what you want for it will probably be smart enough to avoid the current mess. Ride out the smartpost and HD integration and then bail in a few years.

I have mostly Home Delivery so I have already begun working with the Ground contractors to work out deals for my areas so they can overlap.

They're already failing at 6 days, and it was a sore point of admission in their last earnings call. On the ground, the terminal is completely short staffed on Mondays and IBPR continues to be a hot mess.
 

It will be fine

Well-Known Member
I have mostly Home Delivery so I have already begun working with the Ground contractors to work out deals for my areas so they can overlap.

They're already failing at 6 days, and it was a sore point of admission in their last earnings call. On the ground, the terminal is completely short staffed on Mondays and IBPR continues to be a hot mess.
Fedex has neither the staff nor the volume for a full 6 day operation. For some reason they think 7 will work better. They are really banking on the smartpost volume to fill everything in. That doesn’t solve their staffing issues though.
 

dmac1

Well-Known Member
Even in the small rural town I live in the USPS is running around here on Sundays. With no labor contract to abide by and routes manned by powerless contractors and their even more powerless box oxen there's really nothing standing in the way of a 7/365 operation . Problem is given the many many many days when trucks will be going out with a half a load (or less) on them contractor margins will no doubt be under heavy pressure.
Will XG worry about that? Of course not. Why not? They never tried to hide that fact that they are not in the enterprise building business for contractors.

No surprise there because XG never has and never will grant contractors enough power to have what is recognized as having a truly independent business.

If there is no volume increase, volume will just be spead out more meaning contractors can run FEWER vans/drivers the other days. It may allow for fewer vehicles owned to deliver the same number of packages, and more efficient use of assets. It's like a fast food restaurant that only serves a dinner menu. Almost all have gone to adding a breakfast menu in order to use their equipment 24 hours a day instead of 16.

In this case, each drivers will be using trucks 100% of days instead of 85%. and each day may go from 8 hour average to under 7 hours. I think that being able to use your vehicles 7 days a week is a good thing for contractors, and the smart ones will make more money. Those contractors with more routes will benefit more if the contractor has a clue about scheduling his workers. He might have drivers working 4 ten hour days one week, and three ten hour days the next. He might save a lot on overtime costs. The potential savings from owning fewer vehicles to do the same work could allow for better pay to make up for hours lost by drivers.

Even those contractors with fewer routes could benefit if they are flexible enough. 5 routes per day could become 4. And if some shippers use fedex more because of potentially quicker delivery times, volume could increase- which is also good for contractors. For the guy who signed up for a 40 hour job, 5 days a week, and is getting further away from that with every fedex change in the contract, they might be unhappy, but as a business owner, they should be happy with more efficient use of their assets.
 

dmac1

Well-Known Member
Fedex has neither the staff nor the volume for a full 6 day operation. For some reason they think 7 will work better. They are really banking on the smartpost volume to fill everything in. That doesn’t solve their staffing issues though.

If volume remains constant, the workload per employee remains constant, just spread out over 7 days. Once long haul is on a seven day schedule, package flow will even out pretty quickly. You can expect the number of worker per day to drop , and potentially elimination of any overtime being required It will be cheaper to have drivers working 3 and 4 day work weeks than it is to have them working 6 days. Overall, fewer trucks are needed if the load is spread out over 7 days instead of 6. The problem is that contractors will need to think about it a little, and many don't have the smarts to work out how to schedule their drivers, or change the routes around once daily volume falls while weekly volume remains the same.
 

It will be fine

Well-Known Member
If volume remains constant, the workload per employee remains constant, just spread out over 7 days. Once long haul is on a seven day schedule, package flow will even out pretty quickly. You can expect the number of worker per day to drop , and potentially elimination of any overtime being required It will be cheaper to have drivers working 3 and 4 day work weeks than it is to have them working 6 days. Overall, fewer trucks are needed if the load is spread out over 7 days instead of 6. The problem is that contractors will need to think about it a little, and many don't have the smarts to work out how to schedule their drivers, or change the routes around once daily volume falls while weekly volume remains the same.
You sound like an HD contractor that never had to deal with pickups. Space on vehicles and the time to hit all the pickup windows has as much impact on my vehicle needs as delivery volume does. Taking volume out of the week just lowers the productivity of the trucks running Monday through Friday. There aren’t many pickups to be done on the weekends. It would be more efficient to deliver everything during the week when the trucks have to be on the road anyway.
 

bacha29

Well-Known Member
If there is no volume increase, volume will just be spead out more meaning contractors can run FEWER vans/drivers the other days. It may allow for fewer vehicles owned to deliver the same number of packages, and more efficient use of assets. It's like a fast food restaurant that only serves a dinner menu. Almost all have gone to adding a breakfast menu in order to use their equipment 24 hours a day instead of 16.

In this case, each drivers will be using trucks 100% of days instead of 85%. and each day may go from 8 hour average to under 7 hours. I think that being able to use your vehicles 7 days a week is a good thing for contractors, and the smart ones will make more money. Those contractors with more routes will benefit more if the contractor has a clue about scheduling his workers. He might have drivers working 4 ten hour days one week, and three ten hour days the next. He might save a lot on overtime costs. The potential savings from owning fewer vehicles to do the same work could allow for better pay to make up for hours lost by drivers.

Even those contractors with fewer routes could benefit if they are flexible enough. 5 routes per day could become 4. And if some shippers use fedex more because of potentially quicker delivery times, volume could increase- which is also good for contractors. For the guy who signed up for a 40 hour job, 5 days a week, and is getting further away from that with every fedex change in the contract, they might be unhappy, but as a business owner, they should be happy with more efficient use of their assets.
Running truck 100% of days? Sounds to me like you subscribe to the XG contractor maintenance protocol......." Don't fix it when it's broke....fix it when it quits running".
 

OrioN

double tap o da horn dooshbag
Geezus, I just got done on Monday as a cover driver of 3 towns... 60 stops butt 240 miles.

Some drivers are burning out from a 6 day work week & it's not peak season yet.

They're hiring more drivers before the summer season arrives in time for the new powerpads to arrive.

The standalone HD terminal is at max route capacity & some are being transferred to the nearby co location next month as well.

Still having unscanned boxes on my pile with some missorts daily. If I get a perfect scan/exact match to my printed manifest, I'm gonna take my tips and play the lottery... but it's not going perfectly since December 2018

There's no way I'm working Sundays, so count me out.
 

sadmanhere

Well-Known Member
There's no way I'm working Sundays, so count me out.[/QUOTE]


you will be working sundays or you won't be working at all at fedex.
 

It will be fine

Well-Known Member
There's no way I'm working Sundays, so count me out.
you will be working sundays or you won't be working at all at fedex.
Nah. Right now Saturdays need about 30% of my resources to cover. That would make Sunday need less than 10 if I had to guess. The volume might be low enough where I could just eat the DNAs if the Sunday guy calls off.
 

dmac1

Well-Known Member
You sound like an HD contractor that never had to deal with pickups. Space on vehicles and the time to hit all the pickup windows has as much impact on my vehicle needs as delivery volume does. Taking volume out of the week just lowers the productivity of the trucks running Monday through Friday. There aren’t many pickups to be done on the weekends. It would be more efficient to deliver everything during the week when the trucks have to be on the road anyway.

You are looking at daily productivity. Using fewer vehicles to deliver (or pick up) the same number of packages is more productive. If you can't see that, I can't help.
 

dmac1

Well-Known Member
Nah. Right now Saturdays need about 30% of my resources to cover. That would make Sunday need less than 10 if I had to guess. The volume might be low enough where I could just eat the DNAs if the Sunday guy calls off.

If line-haul is delivering 7 days a week and sorts are run daily , your daily stop count should be closer to evening out. You won't have the heavy Monday and slow Tuesday. That's IF fedex runs the whole operation 7 days, and not just delivery to final destination.
 
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