59 Dano
I just want to make friends!
LOL, it's more like, "I'm going to take a loss in the tens of thousands of dollas instead of recouping my investment, bro. COME AT ME, BRO."
How to Fire Fedex.
- Thread starter Exec32
- Start date
LOL, it's more like, "I'm going to take a loss in the tens of thousands of dollas instead of recouping my investment, bro. COME AT ME, BRO."
12yearsaslave
Well-Known Member
I'll take "things that didn't happen" for 200 Alex
CJinx
Well-Known Member
Contractors abandoning their routes? It does happen from time to time. Whether or not it occurred with the 'gusto' that the OP is claiming, doubt it. Most of them just pull their trucks at night and fall off the face of the planet.
It will be fine
Well-Known Member
I haven’t heard of it after ISP. If someone is at scale that’s a lot to walk away from. I heard about it all the time with single van contractors. I don’t think Fedex cares at all though, it’s a pain for the local management for a bit and then things go on as they always do.
12yearsaslave
Well-Known Member
I've only seen it happen when it's inevitable termination and the contractor knows he 
ed up. Then the bs usually starts, how they are fed up etc. Most likely this fella simply failed. (which if you are walking away from an operation, it can't be that profitable to begin with, failing)
ed up. Then the bs usually starts, how they are fed up etc. Most likely this fella simply failed. (which if you are walking away from an operation, it can't be that profitable to begin with, failing)Under the 'old' contract, if you walked away without proper notice, and fedex had to cover the routes, you were liable for the cost to fedex of operating the routes minus whatever you would have been paid. You know fedex would have made their 'cost' extremely high, and walking away could leave you owing fedex a bundle of money.
STFXG
Well-Known Member
How old of a contract are you talking? Actual expenses of covering an area are pretty new. It used to be just the $2k in your escrow account would be forfeited.
DMAC's right about it. All claims have to be settled prior to final separation including any claims that X might have which could include expenses of running your route during the interim. If their costs exceed the 2K escrow and you are still an incorporated entity they could take you to court for the additional money if the claim was large enough to warrant doing so especially if they believed that your corp still had some cash in it's account.
Under ISP they have absolute control over guy's . If you still believe that in the end you'll sell to some unsuspecting slug and net a pile cash then you better do it pretty soon because the likelihood of it happening is becoming ever more unlikely.
Contractors walking-away is becoming a trend lately in North Cal.
Contractor in San Jose
Contractor in Roseville with 30+ routes.
Contractor in Tracy with 15 routes
- walked away just week ago
dvalleyjim
Well-Known Member
Soon, there will be a mass exodus of drivers. For the first time in recent history their are more jobs than people willing to work to fill them. Hopefully wages will go up.
This is the new New Gilded Age and X doesn't want contractors. It wants servants. Like many contractors before them these people may have simply run out of cash. When it comes to contracting with X you're only as good as your cash flow.
Could be that debt service and operating costs finally outran profit. A good driver can make as much money driving for UPS compared to having to operate 5 or more routes. At some point, if you are trying to use new/newer equipment, or need vehicles to run a lot of miles, you can't really sell if you're honest with potential buyers. You can't live forever on the tax benefits of high mileage routes. The depreciation is too much with high miles.
Tracy is 'my' closest terminal- over 70 miles each way, without stops. The driver used to do
alternate' delivery days, serving different areas on different days, holding packages. I would check tracking # and see my package on the truck, and then listed at the end of the day as being undeliverable sometimes for a few days, suposedly because nobody was available to accept, even without a signature required. I complained multiple times, including upper mgmt outside the terminal itself. Complaining to the terminal manager had done nothing.
Maybe having to buy two more trucks and hire two more drivers to serve his entire area every day was just too much.
Fred's Myth
Nonhyphenated American
Things may have changed, but used to be Ground only had to meet commitment day. Express was mandated to deliver if it was in the station, whether it was due or not.
That's why it was coded. If the driver wasn't nearby, the package was only along for the ride.
HD used to be a little different. If the package was 'presented' to you and scanned onto your vehicle, you were required to attempt the delivery. The Tracy terminal is HD. There is a ground terminal just a few miles away from me. The HD driver was falsely coding the deliveries instead of honestly scanning them as DNA. He was trying to avoid covering his entire area. HD never had any 'alternate delivery' policy.
When it is so easy for customers to see when a package is loaded on a van, and at the end of the day sees it coded as being undeliverable for a fake reason, the driver can't get away with miscoding for very long. Coding a package as undeliverable when the customer is home all day is really falsifying data and grounds for termination. I do know that since my several complaints, my deliveries from HD have always been delivered the day I see it on tracking as 'out for delivery' even if the delivery is well after 5 pm.
That said, it doesn't make sense for HD to be delivering packages from a terminal more than 70 miles away when there is a small ground terminal right in town.
Maybe the HD contractor was offered a move with the local ground terminal becoming a colo, or maybe the ISP transition is really difficult if HD and ground packages going to the same area come from terminals 70 miles apart. Maybe the contractor gave up his routes because he would have been required to move, or operate out of multiple locations, making it hard to combine HD and ground onto one vehicle. Either way, no one is going to just walk away from a 'business' that some here claim is so valuable and profitable if just managed right.
Tracy is HD/Ground collocation.
Even if contractor still has positive EBIDTA/cashflow, this business requires capital investments (new trucks) and if cashflow drops low enough so that shareholders do not see reason to re-invest, they just decide to write off loses and walk-away and this is right move unless Fedex fixes the situation in Nor Cal.
Wage inflation is crazy high and unemployment is record low in that area.
Good point deve. If you are not in a region of the country whose demographics match perfectly with the XG contractor model carrying out the company's dictates becomes extremely difficult and in some cases impossible. Nevertheless it's still a nationwide carrier and somebody has to go out there and there are indeed some areas of the country where that company is going to lose money They know where they are and as a result in an effort to minimize their losses they are only going to give that contractor enough money to at best just barely survive.
What might easily work with alternate day delivery becomes a money pit pretty easily when you need to double your investment in vehicles and drivers.
