At eTruckBiz, our mission is simple- to help contractors run the easiest and most profitable business possible. Recently we’ve become aware of a potentially growing problem found within several contractors’ operating agreements. In each case, these were recently negotiated contracts done by popular brokers in the FXG space.
Can anything good come from a grim FedEx earnings pre-announcement?
While the announcement and the withdrawal of next fiscal year’s guidance are ominous signs of storminess to come, there may be a silver lining. In recent months, eTruckBiz has seen a 70% increase in renegotiation requests for its clients being granted, signaling that FedEx may be more willing than ever to work with struggling contractors.
As many of you know from attending our many informational sessions over the years, the contractor model affords FedEx Ground the lowest cost provider of last mile transportation services in the industry.
It appears that now may be the time to unleash the power of this competitive advantage.
So as you might imagine, there is a considerable amount of chatter out there about some recent, controversial events.
Many want to know what we think about the whole situation.
We’re going to give you some thoughts, but I’d like to point out our perspective on the matter first.
July 20th, 2020, was the day that FXG announced via MGB that it would make significant changes to the way they will approach your End Of Agreement (EOA) process.
It is important to understand what’s going on here, as it will impact the way you think about contract renewals with FXG.
At first glance, it appears it’s just FXG flexing its muscles again, and in some respects that’s true.
However, when you study the process, it’s easy to see that it is really an attempt to ...