Slow season for LTL right now?

Y’all just keep raising the bar about getting hammered.

 

It seems like it’s picking up again.

 

I heard and I forget where I heard this from, but that some retailers and whoever are cancelling purchase orders for some goods and stuff, because the shipping costs are so expensive that, the stuffs not worth shipping at this time. I don't know how true that is, but it's plausible.

 

I think retailers are dealing with a glut of inventory too. Heard that on CNBC recently

 

FedEx as a whole will be doing a major reorg with Express and Freight moving under the Ground umbrella and business model. If you’re looking to get on with FX, I highly recommend getting on with a Contract Service Provider (CSP) or FXG.

 

I'm getting worried about how things may end up here in ATL. At our hub, we have many guys that are retiring this year but NEA has plans to expand their terminal, which construction has already started. They are supposed to be a mini-hub which will more than likely take away from some of our runs in ATL. I don't know how all this is going to work, but it is going to be an interesting next couple of years.

 

Please cite your sources. Sure the rumor mill is spinning, but what’s actually happening is the company drivers at Freight are taking more and more work from Ground. Linehaul miles, parcel delivery in the peak season, and now starting to move trailers for them to and from rail yards.

Express is a different beast, and while I doubt they’re going to completely convert it to a contractor model, they definitely want to shift deliveries to Ground where the service level allows it. Express will basically be part time couriers only. A morning shift for the time sensitive deliveries and a PM shift to get the pickups done and delivered to the airport on time.

 

I was going to say isn’t FedEx having some troubles with there ground contractors right now? I mean it’s easy to fire a bad employee, but to fire a bad contractor who owns 250 routes is another story.

 

The circumstances depend a great deal on location: I’ve seen high performing CSP’s - grab business from the under-performers and others park their trucks and/ or decline runs due to high fuel prices.

 

I’m sure the situation varies based on location and labor availability. Freight and Express are struggling with their staffing levels in the PNW. My source was front-line management at Express about 2 years ago; admittedly, this info cannot be verified so take it for what it’s worth.