FedEx Ground 7 Days

The Youngin' Of It All

Well-Known Member
My inside sources told me today that 7 days is going to happen down the road sooner than we think. So many unanswered questions and thoughts through my mind on this. From FedEx's operation to ours. Money, staff, maintenance, etc. I have no problem adapting or complying. It will be a huge change, but I see the big picture. Is Express also going to be working? Just looking for some on topic feedback. Looks like they intend to stretch that ISP service contract to the max.
 

bacha29

Well-Known Member
My inside sources told me today that 7 days is going to happen down the road sooner than we think. So many unanswered questions and thoughts through my mind on this. From FedEx's operation to ours. Money, staff, maintenance, etc. I have no problem adapting or complying. It will be a huge change, but I see the big picture. Is Express also going to be working? Just looking for some on topic feedback. Looks like they intend to stretch that ISP service contract to the max.
Even out here in rural Mid-Atlantic region the USPS car is out Sunday's delivering. If it becomes reality then as I'm sure you know it becomes a contractor problem that requires a contractor solution .
 

dmac1

Well-Known Member
My inside sources told me today that 7 days is going to happen down the road sooner than we think. So many unanswered questions and thoughts through my mind on this. From FedEx's operation to ours. Money, staff, maintenance, etc. I have no problem adapting or complying. It will be a huge change, but I see the big picture. Is Express also going to be working? Just looking for some on topic feedback. Looks like they intend to stretch that ISP service contract to the max.

For any business owner, maximizing use of your assets should equal more profit potential. That means your vehicles in this case. You won't have any issues finding people willing to work on weekends part time because there are millions of people who have 40 hour a week jobs who need extra money. If it is profitable to run 5 days a week, it should be just as profitable per day to run 7 days. Your gas and maintenance costs are basically per mile, and adding a 7th day of work without raising your monthly insurance rate actually reduces your per mile costs.

Yes, 7 days may mean more work for a small operator, but for larger operations who already have a manager, even that cost is really a per hour expense. Maybe you can have one 4 day work week, and another shift for the other three days. You might even save money on overtime costs if you are now paying extra for OT. Even if you personally might need to work 7 days a week, your profits should increase proportionately, meaning an extra 40% profit as compared to a 5 day week.

If you look at businesses like Taco Bell, for example, they expanded their business hours to include breakfast to utilize their asset- the restaurant- more fully. If you don't have the volume to make it worthwhile, that is one of the problems with the unilateral aspect of being an ISP under a contract that you have no choice to accept with no real negotiation except around the edges. If you paid for the right to service a contract someone else originally signed, unless you sell it to another unknowing individual, you don't have a choice anyway. At least the next 'owner' will know that they are expected to work seven days a week, and can decide on a purchase price that reflects their business goals.

7 day a week operation should lead to larger operations because it simply won't be as easy for the owner of a smaller operation to manage 7 days a week, 360 days a year unless volume on the extra days grows. Simply spreading out the same volume now delivered in 5 days over 7 days is a money loser.
 

It will be fine

Well-Known Member
For any business owner, maximizing use of your assets should equal more profit potential. That means your vehicles in this case. You won't have any issues finding people willing to work on weekends part time because there are millions of people who have 40 hour a week jobs who need extra money. If it is profitable to run 5 days a week, it should be just as profitable per day to run 7 days. Your gas and maintenance costs are basically per mile, and adding a 7th day of work without raising your monthly insurance rate actually reduces your per mile costs.

Yes, 7 days may mean more work for a small operator, but for larger operations who already have a manager, even that cost is really a per hour expense. Maybe you can have one 4 day work week, and another shift for the other three days. You might even save money on overtime costs if you are now paying extra for OT. Even if you personally might need to work 7 days a week, your profits should increase proportionately, meaning an extra 40% profit as compared to a 5 day week.

If you look at businesses like Taco Bell, for example, they expanded their business hours to include breakfast to utilize their asset- the restaurant- more fully. If you don't have the volume to make it worthwhile, that is one of the problems with the unilateral aspect of being an ISP under a contract that you have no choice to accept with no real negotiation except around the edges. If you paid for the right to service a contract someone else originally signed, unless you sell it to another unknowing individual, you don't have a choice anyway. At least the next 'owner' will know that they are expected to work seven days a week, and can decide on a purchase price that reflects their business goals.

7 day a week operation should lead to larger operations because it simply won't be as easy for the owner of a smaller operation to manage 7 days a week, 360 days a year unless volume on the extra days grows. Simply spreading out the same volume now delivered in 5 days over 7 days is a money loser.
There isn’t any more volume coming for 7 day operations. Most shippers aren’t working 7 days, only the largest ones. Sunday’s will be a money loser. At best we’ll get a bunch of smartpost volume to deliver and fedex will pay us less for those deliveries.
 

Code 82 Approved

Titanium Plus+ Level Member with benefits!
I've been around longer than I'd like, but one thing is constant. Adapt to make it work. As a manager, I am already 24-7 so nothing they do is going to surprise me. If we need a 4/3 so be it. I can create 5/2's. It's a business we own and are proud of. I can't underestimate corporate, so just plan ahead.
 

bacha29

Well-Known Member
There isn’t any more volume coming for 7 day operations. Most shippers aren’t working 7 days, only the largest ones. Sunday’s will be a money loser. At best we’ll get a bunch of smartpost volume to deliver and fedex will pay us less for those deliveries.
Seriously, I think you should take the first offer you can live with and get the hell out of there. it's becoming a headache you don't need. As you say all it will mean is more trucks going out on more days with half a load on them because rest assured if ever you were to try to combine loads onto one truck and then send the other guy home that Sunday morning he ain't coming back the following Sunday morning.
 

dmac1

Well-Known Member
There isn’t any more volume coming for 7 day operations. Most shippers aren’t working 7 days, only the largest ones. Sunday’s will be a money loser. At best we’ll get a bunch of smartpost volume to deliver and fedex will pay us less for those deliveries.

If volume is the same spread out over more days, to keep profit the same you will need to reduce hours per day. Larger operations will be able to adapt and make profit, but smaller ones won't be able to make it work, especially in rural or spread out suburban routes. In those areas where more miles are driven daily, your extra fuel and maintenance costs will be 16% higher.

It comes down to whether your driver spends more hours driving, or more hours making deliveries. I had 400 mile routes where I spent at least 8 hours of a ten hour day actually driving with maybe 40 deliveries of 2-3 minutes each , and other routes in tight city areas where I only drove 20 miles and made maybe 150 deliveries of maybe 2 minutes each, meaning about 5 hours or more NOT driving. With 16% fewer deliveries per day, I would have saved at least an hour a day, made up by working seven days, instead of six, and only adding 20 miles of vehicle costs on the seventh day. This is a huge difference from adding 400 miles on a rural route, and only saving maybe 15 minutes of making deliveries. Saving 15 minutes per day for 6 days will NOT pay for the extra driver on the seventh day, let alone the added vehicle costs on a rural route. On a city route, you might be able to save the 1+ hour per day and have other drivers cover parts of what now takes a full route, using six drivers instead of seven, for example. You can't do that with rural routes. Even if you have 6 routes, and only one or two of them is rural, the seventh day could greatly affect your bottom line.
 

bacha29

Well-Known Member
If volume is the same spread out over more days, to keep profit the same you will need to reduce hours per day. Larger operations will be able to adapt and make profit, but smaller ones won't be able to make it work, especially in rural or spread out suburban routes. In those areas where more miles are driven daily, your extra fuel and maintenance costs will be 16% higher.

It comes down to whether your driver spends more hours driving, or more hours making deliveries. I had 400 mile routes where I spent at least 8 hours of a ten hour day actually driving with maybe 40 deliveries of 2-3 minutes each , and other routes in tight city areas where I only drove 20 miles and made maybe 150 deliveries of maybe 2 minutes each, meaning about 5 hours or more NOT driving. With 16% fewer deliveries per day, I would have saved at least an hour a day, made up by working seven days, instead of six, and only adding 20 miles of vehicle costs on the seventh day. This is a huge difference from adding 400 miles on a rural route, and only saving maybe 15 minutes of making deliveries. Saving 15 minutes per day for 6 days will NOT pay for the extra driver on the seventh day, let alone the added vehicle costs on a rural route. On a city route, you might be able to save the 1+ hour per day and have other drivers cover parts of what now takes a full route, using six drivers instead of seven, for example. You can't do that with rural routes. Even if you have 6 routes, and only one or two of them is rural, the seventh day could greatly affect your bottom line.
Long story short. X thinks the entire world is an extremely affluent metropolis . X doesn't need 7 day weeks to kill off the rural contractors Six will do just fine. .
 

12yearsaslave

Well-Known Member
extra 40% profit as compared to a 5 day week.
Wtf are you smoking. Do you know how an agreement is structured? All of your fixed income is the same, and they spread the same volume over 7 days meaning your flex income is the same. You just run extra 2 days. Meaning management cost, recruitment cost, training cost etc. Oh and you are very efficient now so they will take another 8-15% off you when they overlap.
 

12yearsaslave

Well-Known Member
I've been around longer than I'd like, but one thing is constant. Adapt to make it work. As a manager, I am already 24-7 so nothing they do is going to surprise me. If we need a 4/3 so be it. I can create 5/2's. It's a business we own and are proud of. I can't underestimate corporate, so just plan ahead.
Yeah we all appreciate the company. But when they post record profits, record stock price and the economy is all time high, I do not understand why the contractor class always has to eat ALL of the cost required for the growth and expansion of the operation.
 

vantexan

Well-Known Member
Yeah we all appreciate the company. But when they post record profits, record stock price and the economy is all time high, I do not understand why the contractor class always has to eat ALL of the cost required for the growth and expansion of the operation.
It's easy, FedEx has always taken away from various groups under it's umbrella to pay others. Profit is above all else imperative.
 

bacha29

Well-Known Member
Yeah we all appreciate the company. But when they post record profits, record stock price and the economy is all time high, I do not understand why the contractor class always has to eat ALL of the cost required for the growth and expansion of the operation.
If you're a contractor the best place to find the answers you seek is that so called "contract" you signed. Now did you notice something unusual about it?

NOTHING"S BINDING !
They can do any damn thing they want to you and there's nothing you can do about it and when a contractor tries to tell me that it's his own business I simply respond by saying: If it's your "business" then how come Fat Freddy's DOT numbers are on the side of your bank owned truck"?
 

Fred's Myth

Nonhyphenated American
It's easy, FedEx has always taken away from various groups under it's umbrella to pay others. Profit is above all else imperative.
Profit is the fundamental requirement to stay in business. How that profit is achieved is where employers/employees disagree.
If FedEx truly believed in 'free enterprise', they would remove the barricades they hide behind and allow collective bargaining for more than just their pilots. But then, that would be a more level playing field.
 

Star B

White Lightening
We can collectively bargain, but under the RLA we all have to agree. It's easy to get the pilot group to agree because it's pilots, a small set of people. If the couriers tried to organize, I have to try to come to terms with the FO driver in Arizona and in Florida who doesn't care about anything but the size of his paycheck and the fact that union dues would reduce it.

That's the wonders of the RLA. It makes it so that the whole workgroup has to agree. And because of the size of our workgroup.... it makes it damn well impossible nowadays.
 

Code 82 Approved

Titanium Plus+ Level Member with benefits!
Yeah we all appreciate the company. But when they post record profits, record stock price and the economy is all time high, I do not understand why the contractor class always has to eat ALL of the cost required for the growth and expansion of the operation.
Because people like us adapt, and kick ass!
 

dmac1

Well-Known Member
Wtf are you smoking. Do you know how an agreement is structured? All of your fixed income is the same, and they spread the same volume over 7 days meaning your flex income is the same. You just run extra 2 days. Meaning management cost, recruitment cost, training cost etc. Oh and you are very efficient now so they will take another 8-15% off you when they overlap.

If volume grows, spreading it out over 7 days should be cheaper because you should be able to reduce the number of vehicles per day compared to cramming it into 5 days.

Same thing in reverse goes too. Same volume in 7 days means you should need fewer vehicles/drivers per day. Depending on your area, and miles driven, and number of routes, and whether you currently have drivers working overtime, you could come out ahead. Owners with more routes will do much better than smaller owners. Too bad for you if you don't make the profit fedex 'promised' you.
 
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