Post Peak Postmortem

dvalleyjim

Well-Known Member
Again, what do you own? If you have a subway store and they close it you can till sell subs. You got the equipment, the location, and the customer base. But bbsam is right. Most franchises close and don't open under their own name. Maybe they own the building and the equipment. I think you end up buying the equipment, still I think you own more than you do in an ISP.
 

59 Dano

I just want to make friends!
Because you expect every contributor to this site to acknowledge and reinforce your belief that your's is a superior intellect along with your knowledge and experience when it comes to the transportation industry.

Sorry to burst your bubble, but I don't care what a bunch of anonymous posters on a message board thinks of this anonymous poster on a message board. I don't keep a spreadsheet that tracks who thinks what about me. A person who absolutely hates me for what I say about one thing might appreciate what I say about another. Or not. I'm a big boy and I can live with it either way.

And anyone who fails to pay the honor and glory you expect will be subjected to personal attacks .

No, but if you say something stupid you should expect to have it identified as such.
 

bacha29

Well-Known Member
Sorry to burst your bubble, but I don't care what a bunch of anonymous posters on a message board thinks of this anonymous poster on a message board. I don't keep a spreadsheet that tracks who thinks what about me. A person who absolutely hates me for what I say about one thing might appreciate what I say about another. Or not. I'm a big boy and I can live with it either way.



No, but if you say something stupid you should expect to have it identified as such.
Oh, I'm so sorry. I didn't know that you were the self appointed intellectual arbiter for this site. I'll be sure take note of the fact that whatever comments on this site you and you alone consider to be "stupid" the rest of us will have no choice but to acquiesce.
 

59 Dano

I just want to make friends!
Oh, I'm so sorry. I didn't know that you were the self appointed intellectual arbiter for this site. I'll be sure take note of the fact that whatever comments on this site you and you alone consider to be "stupid" the rest of us will have no choice but to acquiesce.

No need. Your stupidity tends to speak for itself.
 

NYCFXG

Well-Known Member
From what I gathered, this peak was all about HD. They finally planned and organized their operations in my area well enough that they were able to re-route the majority of the workflow through the cheaper carrier. In this case, HD costs (on average) 30% less than Ground. We were there to handle the overwhelming amount of work during the first two weeks and then any overflow during the remaining. I made decent money, but no where near what I expected based on initial projections. Whereas, my HD brethren blew away projections and made 50% more than expected.

I honestly, can't blame X for doing it this way because it is exactly what I would have done had I been in their position. I figure, they will do this until they can overlap and then reduce the overall pay for contractors. There is about to be a massive loss of equity for the second time in 5 years with the new overlap mandate. It was hard enough with ISP, this is going to be much worse for the contractor. There was once 2 separate carriers that represented $xxx,000 per route area. Now that will likely be slashed by at most 50% with the new attempts to consolidate into one carrier. I wish all those that stick around the best of luck.

In the long run, I really, truly believe this was a great investment and has a bright future if you are one of the last remaining juggernauts. But, there are going to be a lot of losers before we reach that point.
 

bbsam

Moderator
Staff member
From what I gathered, this peak was all about HD. They finally planned and organized their operations in my area well enough that they were able to re-route the majority of the workflow through the cheaper carrier. In this case, HD costs (on average) 30% less than Ground. We were there to handle the overwhelming amount of work during the first two weeks and then any overflow during the remaining. I made decent money, but no where near what I expected based on initial projections. Whereas, my HD brethren blew away projections and made 50% more than expected.

I honestly, can't blame X for doing it this way because it is exactly what I would have done had I been in their position. I figure, they will do this until they can overlap and then reduce the overall pay for contractors. There is about to be a massive loss of equity for the second time in 5 years with the new overlap mandate. It was hard enough with ISP, this is going to be much worse for the contractor. There was once 2 separate carriers that represented $xxx,000 per route area. Now that will likely be slashed by at most 50% with the new attempts to consolidate into one carrier. I wish all those that stick around the best of luck.

In the long run, I really, truly believe this was a great investment and has a bright future if you are one of the last remaining juggernauts. But, there are going to be a lot of losers before we reach that point.
True to a certain extent. But the overlap really makes operating a CSA so much easier. We did some right before peak and it was an incredible God send. Not sure how the restructured money will work out because we basically subcontracted to each other for short term. We'll see. I'm not overly optimistic.
 

It will be fine

Well-Known Member
True to a certain extent. But the overlap really makes operating a CSA so much easier. We did some right before peak and it was an incredible God send. Not sure how the restructured money will work out because we basically subcontracted to each other for short term. We'll see. I'm not overly optimistic.
It's great as a subcontract, when you negotiate with overlap you lose. I doubled my stop count with overlap and they lowered every bucket. Less annual, less stop rate, less piece rate. I lost a few hundred per week per route under the new overlap contract. The efficiency gained is washed out by all the additional trucks I had to send out. It's a bad deal and I have to be available 6 days a week too.
 

bbsam

Moderator
Staff member
It's great as a subcontract, when you negotiate with overlap you lose. I doubled my stop count with overlap and they lowered every bucket. Less annual, less stop rate, less piece rate. I lost a few hundred per week per route under the new overlap contract. The efficiency gained is washed out by all the additional trucks I had to send out. It's a bad deal and I have to be available 6 days a week too.
I don't doubt it. My guess is we'll just subcontract until 2021 when it all becomes mandatory. It's too bad too. They could build something respectable but they insist on being cheap.
 

bacha29

Well-Known Member
From what I gathered, this peak was all about HD. They finally planned and organized their operations in my area well enough that they were able to re-route the majority of the workflow through the cheaper carrier. In this case, HD costs (on average) 30% less than Ground. We were there to handle the overwhelming amount of work during the first two weeks and then any overflow during the remaining. I made decent money, but no where near what I expected based on initial projections. Whereas, my HD brethren blew away projections and made 50% more than expected.

I honestly, can't blame X for doing it this way because it is exactly what I would have done had I been in their position. I figure, they will do this until they can overlap and then reduce the overall pay for contractors. There is about to be a massive loss of equity for the second time in 5 years with the new overlap mandate. It was hard enough with ISP, this is going to be much worse for the contractor. There was once 2 separate carriers that represented $xxx,000 per route area. Now that will likely be slashed by at most 50% with the new attempts to consolidate into one carrier. I wish all those that stick around the best of luck.

In the long run, I really, truly believe this was a great investment and has a bright future if you are one of the last remaining juggernauts. But, there are going to be a lot of losers before we reach that point.
No doubt that they are consolidating their power over a smaller number of contractors . Creating and preserving contractor equity is of no concern to them. They don't care about building a relationship with their contractors. Why should they? They control everything.
 

It will be fine

Well-Known Member
I don't doubt it. My guess is we'll just subcontract until 2021 when it all becomes mandatory. It's too bad too. They could build something respectable but they insist on being cheap.
By the results this peak it's working. I was hoping for some systemic failures so they'd put more money towards us. Didn't happen, we did too well and now we're getting shippers switching over left and right.
 

OrioN

double tap o da horn dooshbag
Stop count still there with my condensed area. USPS barcodes are back! Under 90 miles& getting done by 1800 this week. Snowstorm is coming Friday and Saturday though, but still have lots of hours left since HD had Monday & Tuesday off...

One supplemental out of my 2 is gone... the other went from a cargo van to a rental box truck to increase his cargo capacity to actually be more useful and maintain doing my half of the route, hopefully until at least Valentine's day.

Wondering why the investors cut our bonus pay 75% from last peak... I had zero complaints or DFUs for the last 6 months.
 

bacha29

Well-Known Member
It's great as a subcontract, when you negotiate with overlap you lose. I doubled my stop count with overlap and they lowered every bucket. Less annual, less stop rate, less piece rate. I lost a few hundred per week per route under the new overlap contract. The efficiency gained is washed out by all the additional trucks I had to send out. It's a bad deal and I have to be available 6 days a week too.
Based on what your saying it would appear that rather than HD being absorbed by Ground which is what one would normally think would happen Ground is being absorbed by HD with the new rate structure based on the lower HD rate. If that's what is happening than no one need be surprised because their entire focus is not serving a market successfully but rather how to beat route contractors by all means possible and get away with it.
 

bbsam

Moderator
Staff member
Based on what your saying it would appear that rather than HD being absorbed by Ground which is what one would normally think would happen Ground is being absorbed by HD with the new rate structure based on the lower HD rate. If that's what is happening than no one need be surprised because their entire focus is not serving a market successfully but rather how to beat route contractors by all means possible and get away with it.
That's tortured logic.

Combining the two makes perfect sense. Screwing the contractor has nothing to do with one absorbing the other but with X absorbing all the savings created by efficiencies.
 

Fred's Myth

Nonhyphenated American
That's tortured logic.

Combining the two makes perfect sense. Screwing the contractor has nothing to do with one absorbing the other but with X absorbing all the savings created by efficiencies.
But, that doesn't fit HIS worldview! You must re-think your position.
 

bacha29

Well-Known Member
That's tortured logic.

Combining the two makes perfect sense. Screwing the contractor has nothing to do with one absorbing the other but with X absorbing all the savings created by efficiencies.
No surprise there. You see my station is combined HD/Ground and is located in a sparsely populated rural area with an overall truck deployment impossibly thin. As a result it didn't matter if the box had a G or an H on the side of it or if it went in a Ground truck or an HD ride. It was all a question of whoever happened to be closest to box's destination. The company's consolidation plan is something we've been doing for years. It's the only way anybody survived economically and still managed to get back in by 9PM. Any gross revenue erosion resulting from consolidation could result in far fewer people willing to take on rural areas.
 
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