Re: Profit-focused-fedex-freight-abruptly-dumps-less-lucrative-ltl-clients
Author: Bobby Big - Rig
Date: 06-20-2021 - 21:31
For those posting above regarding their " ...box " or " package not getting there", it's worth noting that the FedEx unit doing the dumping is FedEx FREIGHT which in the Western States was at one time Viking Freight System. In the South it was once American Freightways. FedEx Freight is a nationwide Less Than ( truck ) Load carrier, along the lines of YRC ( Yellow & Roadway combined ), XPO Logistics Freight ( formerly Conway Freight ) , ABF, and other LTL carriers that make their money by combining many small palletized shipments into over - the - road trailers, often using 28 foot double & triple trailer combinations. These LTL carriers are not designed to haul single box shipments, except maybe over - dimentional stuff like tubing, ground rods, and curtain rods that package carriers can't or won't accept. Most LTL carriers' rate quotes are for a 200 or 300 Lb. minimum weight.
As a common carrier, FedEx has to accept any shipment tendered to it, provided that they are licensed & insured to haul the commodity offered. ( Most LTL carriers are NOT licensed or insured to haul Explosives and some other hazardous materials. ) HOWEVER, in the modern - day deregulated trucking markets, FedEx Freight can set ANY RATE they want to for a shipment, as long as they post the rate with various regulatory bodies, and make said rates available to competing carriers upon request.
FedEx Freight is certainly walking a tightrope with this strategy, which not only irritates the customers involved, but also provides opportunities for competitors to pick up " low - hanging fruit " accounts by simply accepting former FedEx shipments.
The personnel, service & capacity issues with LTL carriers Nationwide are real, and with truckload carriers too as I noted in the SWIFT post above. This deal will NOT help FXF in the long run.