Ground/HD overlap meeting tomorrow

[sadmanhere]

You'll need to upgrade to bigger step vans. Sprinters won't work as well with overlap. In hybrid routes you aren't delivering an average of 1.1 packages per stop. It's more like 4 packages per stop. If Fedex is going to load for you, you'll need real trucks.

I got p700s

 

[It will be fine]

I got p700s

I've got only a couple hybrid routes that will fit on a 700, and I only do that in a pinch with a few trucks in the shop. It'll depend on your area but the Ground packages are larger than HD. Most of the big furniture and such goes through the Ground network. 700's are handy to have as spares and for peak but they aren't big enough for my routes.

 

[sadmanhere]

that's a myth here... our packages are just as big as ground. had a patio set take up half the truck

 

[It will be fine]

that's a myth here... our packages are just as big as ground. had a patio set take up half the truck

Not a myth. I run both. Ground has larger packages.

 

[instiches]

Don't have Ground routes, but it is very clear FedEx stopped caring about their 70lb limit on HD

 

[FedGT]

that's a myth here... our packages are just as big as ground. had a patio set take up half the truck

Not a myth. You had one patio set ground would have 4 patio sets to go along with 2 3box trampoline sets, multiple king size mattresses, swing set, entertainment centers and multiple bedroom sets.

 

[It will be fine]

Not a myth. You had one patio set ground would have 4 patio sets to go along with 2 3box trampoline sets, multiple king size mattresses, swing set, entertainment centers and multiple bedroom sets.

That is one of the benefits for Ground guys adding in HD. It spreads the big stuff out between more trucks. My pure Ground routes get blown up with big stuff daily, the hybrid routes aren't nearly as bad.

 

[bacha29]

That is one of the benefits for Ground guys adding in HD. It spreads the big stuff out between more trucks. My pure Ground routes get blown up with big stuff daily, the hybrid routes aren't nearly as bad.

The way they're dumping motor freight onto you guys the inescapable outcome is that it won't be long until you're going to CDL full air brake straight trucks with hydraulic tailgates.Likewise with the consolidation/merger of G and HD a 6 day year round workweek will be an inescapable reality. Why? Because they can make you do it and there's not a damn thing you can do about except to try adapt as best you can and hope that your guys won't mind maxing out their hours every single day of every single week.

 

[sadmanhere]

The way they're dumping motor freight onto you guys the inescapable outcome is that it won't be long until you're going to CDL full air brake straight trucks with hydraulic tailgates.Likewise with the consolidation/merger of G and HD a 6 day year round workweek will be an inescapable reality. Why? Because they can make you do it and there's not a damn thing you can do about except to try adapt as best you can and hope that your guys won't mind maxing out their hours every single day of every single week.

i don't want to work Mondays...i don't want to manage 6 days a week.. i need my two days off
i don't want to do ground
i don't want to do pick ups
i don't want to deal with p 1000 and p1200
i draw the line here......... I'm not doing this merger! i will let myself be brought out.... I'm going out with style though

 

[bbsam]

i don't want to work Mondays...i don't want to manage 6 days a week.. i need my two days off
i don't want to do ground
i don't want to do pick ups
i don't want to deal with p 1000 and p1200
i draw the line here......... I'm not doing this merger! i will let myself be brought out.... I'm going out with style though

Ok

 

[It will be fine]

i don't want to work Mondays...i don't want to manage 6 days a week.. i need my two days off
i don't want to do ground
i don't want to do pick ups
i don't want to deal with p 1000 and p1200
i draw the line here......... I'm not doing this merger! i will let myself be brought out.... I'm going out with style though

This will be the likely reaction of HD contractors. Ground is harder to manage and they just won't do it.

 

[bacha29]

This will be the likely reaction of HD contractors. Ground is harder to manage and they just won't do it.

It's not that they lack the managerial expertise to do it but given the direction things are headed it won't be economically worthwhile for them to do it. By continuing to reduce the overall number of contractors G is positioning itself to launch an all out effort to drive down contractor margins. They're plainly stated goal was to gain access to trucking at the lowest possible cost not to create equity for contractors. Secondly there is no question that when they saw the kind of prices routes were bringing on the open market it not only angered them but humiliated them because those prices were driven by high profit margins and they have set out to correct what they see as an embarrassing imbalance.

 

[FedGT]

It's not that they lack the managerial expertise to do it but given the direction things are headed it won't be economically worthwhile for them to do it. By continuing to reduce the overall number of contractors G is positioning itself to launch an all out effort to drive down contractor margins. They're plainly stated goal was to gain access to trucking at the lowest possible cost not to create equity for contractors. Secondly there is no question that when they saw the kind of prices routes were bringing on the open market it not only angered them but humiliated them because those prices were driven by high profit margins and they have set out to correct what they see as an embarrassing imbalance.

I respectfully disagree. I think it would bump up their ego even more so. Yes they will be trying to get people to do things for cheaper but that has been the name of the game for 20 years. They will not be squeezing much more because they already know the margins are low and it isn't possible to do it for free. Some of us had decent margins, some have garbage margins, none have great margins.

 

[bacha29]

I respectfully disagree. I think it would bump up their ego even more so. Yes they will be trying to get people to do things for cheaper but that has been the name of the game for 20 years. They will not be squeezing much more because they already know the margins are low and it isn't possible to do it for free. Some of us had decent margins, some have garbage margins, none have great margins.

I like what you say. There is a physiological component to all this and guys who come in right off the street are more often impacted by it rather than somebody who has an idea as to the workings of the operation. The more exposure you have to this model the easier it is to separate fact from fabrication.

 

[Fred's Myth]

I like what you say. There is a physiological component to all this and guys who come in right off the street are more often impacted by it rather than somebody who has an idea as to the workings of the operation. The more exposure you have to this model the easier it is to separate fact from fabrication.

Hope you meant psychological and not physiological.
Apologies, there goes my character defect, again.

 

[bacha29]

Hope you meant psychological and not physiological.
Apologies, there goes my character defect, again.

You are correct. Thank you. But over the years I have seen contractors and managers literally come to blows over issues that could have been avoided if only FXG had remained true to the terms of it's contract.

 

[sadmanhere]

You are correct. Thank you. But over the years I have seen contractors and managers literally come to blows over issues that could have been avoided if only FXG had remained true to the terms of it's contract.

I

It's not that they lack the managerial expertise to do it but given the direction things are headed it won't be economically worthwhile for them to do it. By continuing to reduce the overall number of contractors G is positioning itself to launch an all out effort to drive down contractor margins. They're plainly stated goal was to gain access to trucking at the lowest possible cost not to create equity for contractors. Secondly there is no question that when they saw the kind of prices routes were bringing on the open market it not only angered them but humiliated them because those prices were driven by high profit margins and they have set out to correct what they see as an embarrassing imbalance.

i always felt routes were overpriced.

 

[sadmanhere]

This will be the likely reaction of HD contractors. Ground is harder to manage and they just won't do it.

maybe ground is harder to manage...idk...but all i know is most of the ground guys all want to sell as well
everyone is a seller and no one is a buyer....i feel like the dukes in trading places .. a step behind

 

[Fedexguyt]

maybe ground is harder to manage...idk...but all i know is most of the ground guys all want to sell as well
everyone is a seller and no one is a buyer....i feel like the dukes in trading places .. a step behind

They want to dwindle the contractor base to about 2000, so they can only deal with about 5 guys per building. Then they can cut some of their managerial costs. But if you make it into those 5 and have a 2 million dollar business with a 25% margin you're making $500000 a year. I don't think a 25% margin is unattainable

 

[instiches]

They want to dwindle the contractor base to about 2000, so they can only deal with about 5 guys per building. Then they can cut some of their managerial costs. But if you make it into those 5 and have a 2 million dollar business with a 25% margin you're making $500000 a year. I don't think a 25% margin is unattainable

25% is impossible in this business, unless FedEx decides they want to share more of the pie with us. There is no way you will net out 25% after depreciation (which is a real expense)