The Business of Independent Service Provider Contracting

Embracing Change and Innovation - What to Expect from eTruckBiz in 2024

Posted by Jeff Walczak on 12/29/23 6:00 AM

As eTruckBiz wraps up its 12th year, we take a moment to reflect on the journey so far and the exciting path that lies ahead. It's been a time of significant challenges and changes, not just for us but for the entire FedEx Contractor community. Despite the turbulence caused by ongoing changes within FedEx and the broader economic landscape, we've navigated these waters with resilience and innovation.

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Topics: FedEx, Ground, ISP, FedEx Ground, Business, Contract, contractor, Profit, settlement, Cash flow, Network 2.0, Margins, fxg, CSP, time definite

Why is FedEx Making This So Hard? Advice for Frustrated Contractors.

Posted by Jeff Walczak on 12/20/23 11:34 AM

In our last blog post, we released a legal summary of the most recent lawsuit making the rounds in the transportation business industry. Our goal was to provide contractors with the facts  and a summary along with our best industry recommendations. Our advice is always based on past experience and what we believe is best for contractors, but ultimately we want to empower contractors to make their own choices based on their unique business situations.

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Topics: FedEx, Ground, ISP, FedEx Ground, Business, Contract, contractor, Profit, settlement, Cash flow, Costs, Network 2.0, Margins, time definate, low cost model, fxg, CSP

Navigating New Legal Waters in FedEx Ground

Posted by Jeff Walczak on 12/16/23 8:55 AM

We've got some news that's making waves in our circle. A new lawsuit has popped up concerning contractor status. It's stirring quite a bit of chatter, and we at eTruckBiz think it's crucial to chat about it, especially since it touches on the heart of our operations – the independent contractor model.

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Topics: FedEx, ISP, FedEx Ground, Business, Contract, Negotiation, contractor, Financial, Network 2.0, Margins, fedex legal issues, low cost model, fedex ground contractors, fedex ground legal advice, fxg, fedex lawsuit, Spencer patton, Patton Logistics, CSP

What a Package Rate War Would Mean for CSPs

Posted by Jeff Walczak on 11/29/23 1:51 PM

It has been a long time since economic conditions were favorable for a package rate war between UPS & FedEx.

In fact, because of generally good economic conditions, until a couple of years ago, there was little need for our two favorite competitors to try to steal each other’s business. A rising tide had been raising all boats, even including regional package carriers. Most indicators were signaling that there would never be another true price “war” like there was in the early 90’s, the early 2000’s or the period from 2008 - 2010.

Everything was stable in “pricing-land”...

Until it wasn’t.

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Topics: FedEx, FedEx Ground, Business, Negotiation, contractor, Financial, Margins

What Canada Ground Operations Going “Employee” Could Mean For US CSPs

Posted by Jeff Walczak on 6/21/23 7:05 PM

This week, it was announced that all Canada Ground operations are going to eventually be converted to FedEx Express Canada over the next year and a half, asAnnounce part of the larger Network 2.0 operational transformation.

While we don’t know what the plans are exactly for the U.S. network, we can make some logical assumptions about what the move probably means and doesn’t mean for current CSPs.

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Topics: Business Structure, FedEx, Ground, FedEx Ground, Business, Contract, contractor, linehaul, Network 2.0, transformation

FedEx Contractors Misled About Contract Terms

Posted by Carey Manders on 11/8/22 12:30 PM

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.

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Topics: Business Results, ISP Negotiation, FedEx, FedEx Ground, Business, Contract, Negotiation, contractor, Profit, Agreement, consulting, settlement, Cash flow, brokerage, brokers

Why NOW Is The Time For A Renegotiation

Posted by Jeff Walczak on 9/25/22 1:17 PM

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.

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Topics: Business Results, ISP Negotiation, FedEx, FedEx Ground, Business, Contract, Negotiation, contractor, Profit, Agreement, consulting, settlement, Cash flow, recession, Rates

The Rise of Amazon and the Motivation for Efficiency

Posted by Brian Reeves on 11/14/21 10:15 AM

This is a guest post by Brian Reeves of Reeves Delivery Group in Kentucky.

E-commerce is the way of the future. Customer shopping habits are rapidly changing, due to the convenience of online ordering versus traditional in-store shopping. Online shopping is predicted to continue its rapid growth. The next phase for our delivery companies will be same day delivery. Our businesses still have a long way to grow.

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Topics: Business Results, FedEx Ground, Business, Metrics, contractor, Profit

Recruiting vs Hiring: What Are The Differences?

Posted by Ben Weil on 11/4/21 10:15 AM

There are a lot of blog posts with unrealistic driver recruiting promises. This isn’t one of them. This post is the truth about recruiting FedEx Ground drivers.

Why is recruiting drivers difficult? Mainly because recruiting is convincing good, qualified people to leave their current jobs. Plus, employers mistakenly equate recruiting with hiring. And a lack of continuously recruiting is the source of most CSP's difficulties.

There are five major differences between recruiting and hiring.

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Topics: Driver Recruiting, Business Results, FedEx Ground, Business, Metrics, contractor, Profit

Put First Things First - CSP Best Practices Series

Posted by Ben Weil on 10/24/21 10:15 AM

Image by Gustavofrazao

In a recent blog post, we adapted Stephen Covey’s habit of Begin With the End In MindⓇ for effectively running a FedEx Ground contracting business. The key point being that success is defined by starting each task, each day, and each project with a clear vision of your destination. Success is not only focusing on what looks good, it’s focusing on what really matters.

In this blog post, we’re adapting another of Covey’s habits called Put First Things FirstⓇ. Our intention is ensuring that you and everyone on your team knows which priorities come first. When drivers and managers understand what comes first - profitability - they will be better equipped to work with you in achieving your vision!

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Topics: Business Results, Management, FedEx Ground, Business, Investment, Metrics, contractor, Profit, leadership, consulting

Tips for Transitioning to an EV Fleet

Posted by Ben Weil on 10/14/21 10:15 AM

Image by Workhorse Group Inc.

This blog post is written by our friends at Workhorse Group Inc.

Tips for transitioning to an EV fleet and the benefits for your business.

The adoption of Battery Electric Vehicles (BEVs) for fleets with daily return to base routes under 200 miles is becoming a fast-growing segment of the EV marketplace. More than two-thirds of surveyed fleets that have used BEVs plan to either pilot or purchase them in the next 12 months. *

This move to EVs can be attributed to the significant operational savings and the positive environmental impacts of an EV fleet. With more and more fleet managers moving to EVs, you may ask yourself - Is an electric fleet right for my business? Here are a few things to consider.

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Topics: Business Results, Management, FedEx Ground, Business, Investment, Metrics, contractor, Profit, Purchase, Fuel, Money

KC Linehaul Event Recap

Posted by Ben Weil on 10/3/21 10:40 AM

Image by Dave Bowen

If you missed the “Maximizing Your Linehaul Potential” event held in Kansas City, here’s a brief recap of the day.

We and one of our strategically aligned partners, Rolling Equity Leasing (REL), hosted a daylong seminar examining FedEx Ground Linehaul Contracting. The presenters swiftly covered much ground. Much has changed from the old linehaul ways and more changes are on the way.

After quick introductions, the first presentation and following discussion predominantly impacted newcomers to linehaul contracting. Topics included subjects to focus on when starting, successful business habits, and thriving in a challenging market.

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Topics: Business Results, Management, FedEx Ground, Business, Investment, Metrics, contractor, Profit, consulting, linehaul

Begin With The End In Mind - CSP Best Practices Series

Posted by Ben Weil on 9/19/21 1:15 PM

Image by Daniel Tadevoseyan

In a recent blog post, we adapted Stephen Covey’s habit of Be ProactiveⓇ, into a best practice of running a FedEx Ground contracting business. The key point being that success is consciously controlling what you can and not blaming what’s beyond your control for hindering your vision.

In this blog post, we’re adapting Covey’s habit of Begin With the End in Mind Ⓡ . This is defined by starting each task, each day, and each project with a clear vision of your destination. Being financially successful doesn’t happen by chance. Success is not only focusing on what looks good, it’s focusing on what really matters.

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Topics: Business Results, Management, FedEx Ground, Business, Investment, Metrics, contractor, Profit, leadership, consulting

8 Reasons to Consider Moving Your Fleet to Electric Vehicles

Posted by Ben Weil on 9/13/21 1:25 PM

Image by Xos Trucks

This blog post is written by our friends at Xos Trucks.

The passenger transportation sector has seen a significant uptick in Electric Vehicle (EV) adoption over the last several years, yet the commercial side has been slower to follow.

Now, that’s changing. Increasing environmental regulations and a growing interest in reducing costs have begun to tip the scales toward more widespread fleet electrification.

As a fleet owner and operator, you might be asking yourself, “When, how, and why should I consider electric trucks for my business?” Unfortunately, there’s no simple, one-size-fits-all answer to “how” you should go about transitioning to electric, but “when” and “why” you should go electric can be more easily summarized.

Going electric can positively impact the efficiency and profitability of your business. Here’s a summary of the main reasons why you should consider electrifying your fleet.

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Topics: Business Results, Management, FedEx Ground, Business, Investment, Metrics, contractor, Profit, Purchase, Fuel, Money

Being Proactive - CSP Best Practices Series

Posted by Ben Weil on 8/27/21 1:15 PM

Image by Fokusiert

Have you read Stephen Covey’s book titled 7 Habits of Highly Successful People? If so, have you thought about applying it to being a Contract Service Provider (CSP)?

We’re adapting the most relevant of his seven habits into best practices of highly successful CSP’s.

Covey’s first habit is Be ProactiveⓇ Focus and act on what you can control and influence, instead of what you can’t. This habit is especially important and a great starting point.

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Topics: Business Results, Management, FedEx Ground, Business, Investment, Metrics, contractor, Profit, leadership, consulting

Independent Service Provider (ISP) Tips And Advice

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