Linehaul News Volume 1 Issue 1

How REL Changed The Fuel Game

HOW WILL CARB PREBUY ACTIVITY AFFECT TRANSPORTATION FLEETS AND THEIR PROCUREMENT PLANS?

AT LONG LAST, THERE ARE DRIVERS AVAILABLE

SAFE AND CARING LEADERSHIP: THE ART OF BEING A STEWARD OF HUMAN BEINGS

LETTER FROM THE FOUNDER

I’m excited to share with you the very first issue of Linehaul News. For a long time, the TSP community has not had a publication dedicated to FedEx Ground linehaul contractors (TSPs), and now you do.

We here at Linehaul News believe that the biggest determining factor of whether you as a TSP will be successful is how well you run your business.

By sharing information and knowledge – what works and what doesn’t work – you don’t each have to figure out these things on your own. The benefits are huge when each of you don’t have to reinvent the wheel and don’t have to pay full price in terms of time and money by making the same mistakes others have already made; that’s why we created Linehaul News.

We intend to listen carefully, learn from you and curate what we’ve learned so we can share our knowledge freely with the community. We want you to be successful. We fund our efforts through financial support of advertisers in our publication and sponsors of our events.

Our “product” is shared knowledge and expertise, and we want to make it as widely and freely available as possible. That’s how we roll.

We have big plans. The trade publication you’re reading is the beginning, and we plan to publish regularly. We’re also organizing regional conferences around the country with plans to do

three per year. We’re 100% committed to the success of the Linehaul Summit in Dallas, and we’ve sold out the first of many Freshman Orientation, a one-day crash course (pun intended) for new contractors covering linehaul operations. That’s what we’re up to so far.

Our goal is to serve those of you who want to learn from your peers and use the things you learn to maximize profitability, continue to grow and run a safer operation, provide more reliable service to FXG, provide for your families, provide good careers for your team members to help them provide for their families and be good stewards of the FXG brand. Doing these things makes for a stronger FedEx Ground network, and that helps grow the network and increase volume. Frankly, we don’t see a downside to what we’re trying to do.

For those of you who want to be involved, please reach out and let us know what we can do to support you and the TSP community. Please share your thoughts, suggestions, criticisms and concerns. We want to hear from you at info@linehaulnews.com or you can email me directly at john@linehaulnews.com.

Thank you very much,

John Haldi

HowRELChangedthe FuelGameOvernight

Cost plus zero. With those three words, REL ended the fuel price war by going nuclear. REL negotiated cost plus zero pricing (i.e. wholesale diesel pricing) at most TAs and Petros - about 280 locations across the U.S. During the aftershock of that message, FedEx announced that Pilot/FlyingJ had come to the table and offered cost plus zero as well. And the net result is the best thing that’s happened to TSPs in a long time.

To understand the impact of REL’s move you need to go back to late 2021. As a TSP, your best option for fuel back then was to fill up your tanks at any of the 86 FedEx fuel islands scattered around the country. You could buy fuel there at

wholesale prices thanks to FXG. Yes, there were problems – your drivers had to disconnect, the lines could be long and the pumps might be down. But at wholesale cost, it meant saving up to a dollar per gallon, and those numbers can add up.

But what about when your drivers can’t get to a FedEx fuel island? There are only 86 of them across the country. What if you had a team crossing the country and not stopping at a FedEx fuel island between Sacramento and Scranton? What if you had a solo run that couldn’t stop at any FedEx fuel islands? You were hurting every time your truck filled up at a retail location. The

difference was coming out of your pocket, and for a team truck, that could easily be north of $600 per week per truck. That’s $30,000 per year per truck. Big money - right out the window.

Third-party fuel cards tried to address this need. They offered 30 or 40 cents off per gallon at select locations. That certainly helped, but those cards brought new challenges, like smaller networks, credit applications, administrative fees, separate bank drafts, having to upload receipts each week into MyGroundBiz, needing two fuel cards in trucks because the third party cards wouldn’t work at the FedEx fuel islands, IFTA tax reporting headaches... And in a time when retail vs. wholesale spreads were 80 to 100 cents per gallon, getting 30 to 40 cents off retail still left a big hole in your pocket.

Then in November 2021 REL made a “wow” announcement: they negotiated cost plus 17 cents with TA/Petro for all their lease customers on their card. And their fuel card was a T-Chek card, which meant it was integrated into the same system as the FedEx T-Chek card. No more uploading receipts. No credit application. No separate bank drafts. No extra fees. The purchases flowed through your settlement and your fuel tax reporting just like a FedEx T-Chek card purchase. And you could use the REL card at FedEx fuel islands, so only one card was needed in

the truck. Instead of leaving 50 to 60 cents per gallon on the table, REL shocked people with 17 cents above wholesale.

We asked Pat McKay, CEO of REL, how they were able to get such an aggressive discount from TA/Petro, and he said:

"We’ve known TA for eight years in previous roles and have always had a very good relationship with them. When we sat down with them in 2020 to discuss our vision for REL and our passion for driving costs down for our customers around all

Note for those who don’t understand how FXG reimburses for fuel: Yes, FedEx pays you for fuel, but that reimbursement rate is pegged to the wholesale cost of fuel. So, if you fill up at a FedEx fuel island, you’re in good shape, but if you buy fuel at a retail location, and for example pay $5 a gallon while the wholesale cost is $4.20, that extra 80 cents per gallon is coming out of your pocket. FedEx isn’t reimbursing you for the additional 80 cents above wholesale cost. The amount of unreimbursed fuel can add up quickly each week.

Pat McKay CEO, REL

facets of the truck, we advised them we would be going after a fuel program. At that time, TA had very low share of the FXG TSP retail fuel spend – I think less than 5% – and so they were on board immediately. It actually took us longer to get the IT and data file stuff right than it did for TA to come to the table at cost plus 17 cents."

It turns out they were just getting started. In September 2022, REL opened up their fuel card to ALL FedEx TSPs, not just their lease customers. In October 2022, REL went back to TA/Petro and showed them the numbers and said, “Imagine the volume you could do if you went to cost plus zero.” The discussions were certainly more complicated than that, but whatever they said worked.

On November 11, 2022, REL announced that they reached a new agreement with TA/Petro for cost plus zero (wholesale) pricing at TA/Petro. This was a game-changer. Now you could have a single T-Chek card in your truck, your drivers could buy

wholesale fuel at FedEx or any of the TA/Petro locations, and you didn’t have to worry about losing money at the retail pumps. For many contractors this meant thousands of dollars per week going straight to their bottom line, and “wow” became “holy s&!#!”

Tyler Tattum, COO of REL, explained it best (and more appropriately) when he said:

"Our ‘core’ focus with REL was to provide TSPs with solutions that save them time and money, so we knew we had an opportunity to help our customers navigate these trying times, and we realized that addressing this huge fuel challenge could have a massive impact for all FedEx Ground TSPs. We had the expertise and relationships to make this happen, and TSPs didn’t, so we decided to step up and make a difference for all TSPs, not just our customers. Fuel is just one example of how REL is focused on saving all TSPs time and money in their everyday operations."

And it got better. Two months after REL’s announcement, FedEx announced that Pilot/FlyingJ had come to the table and were now offering cost plus zero at their 750+ locations around the country. REL gives all the credit to FedEx for the Pilot/FlyingJ deal. And that’s fair. But we’re pretty certain that Pilot/FlyingJ wouldn’t have come to the table if REL hadn’t gone nuclear with the price war.

Now, because of the way the REL fuel card was tied into T-Chek, it means you can tell your driver you don’t care if they fill up at FedEx, TA/Petro or Pilot/FlyingJ because you’re getting wholesale pricing at all of them and getting points at TA/Petro and Pilot/FlyingJ.

Tyler Tattum COO, REL

Rock bottom fuel prices and points to make drivers happy. Nearly 1,100 combined locations around the country to get cost plus zero fuel. Total game changer.

When we last checked on the progress of the REL fuel program, they’d issued 5,200 fuel cards to TSPs. Considering there’s no cost to TSPs to participate, it’d probably be safe to say that, before the end of ’23, they’ll be closer to 8,000 cards issued. To date, they’ve helped TSPs buy 6 million gallons of fuel at these discounted prices, saving the TSP community approximately $5 million in just four months.

Pat explains:

"We saw something that didn’t sit right with us. We knew the power of fuel and that the pricing given to FXG TSPs in the retail market was in no way fair to the number of gallons they were buying. We felt we needed to help fix that. We’re thrilled that TA/Petro took the first step and hope our customers continue recognizing that by growing gallons with them. For our part, REL will continue to focus on improving costs for our customers and innovating new products that provide core needs at great pricing."

For all those TSPs using the REL fuel card, you know where to send the thank you cards. For those of you who aren’t, what on earth are you waiting for?

SafeandCaringLeadership: TheArtofBeingaSteward ofHumanBeings

Jon Stanley, CEO Synergy Solutions

In today's fast-paced world, safety programs have become an essential aspect of many workplaces. However, the focus has primarily been on implementing safety protocols and ensuring compliance. It is essential to understand that safety programs are not just about rules and regulations; they are about the people whom the rules are meant to protect. It is crucial to humanize safety programs to ensure they are effective and successful.

Humanizing our workplace means treating people as individuals with unique needs, strengths and weaknesses. It means acknowledging the impact that work-related challenges or incidents can have on their physical and emotional well-being. By humanizing our workplace culture, we can build a community of trust, care and respect for each other's well-being, leading to better outcomes and stronger relationships.

Reflect on your experiences with leaders who have taken you under their wing and how they made you feel. Did it make you a better employee? Now think about leaders who lacked compassion. How long did you stick around?

Early in my career, I had the pleasure of managing a group of drivers who were in several terminals all over western Colorado. These

drivers varied in experience, age and tenure with the company and came from different backgrounds. One driver stood out to me as my biggest challenge.

This driver wasn’t your typical defiant or outspoken driver. He had his own ways of expressing frustration, concern or dissatisfaction with the job. On many occasions, he would refuse to drive certain trucks or pull certain loads or just defy the task at hand. For many weeks, I struggled to figure out how I was going to get through to this driver. It quickly became my reality that I was going to have to ride with him and get to know him.

I spent the next five days riding with this driver back and forth from Grand Junction, Colo. to Denver. I learned about this individual’s family, his wife and his kids. I learned about his earlier years as a horse trainer and rancher. I learned about the funny stories of him getting bucked off broncos and how he overcame the many struggles of immigrating to the United States. I learned how he learns, what motivates him and how I could best connect with him when I needed something done. He became more human to me, which, in turn, allowed me to be human with him. I was later able to provide this driver with all the tools necessary to be successful in his job. He became a loyal and valuable team member.

Here are some steps you can take to humanize your safety program and become a steward of human beings using empathy and compassion:

Understand your employees' needs

To create a safety program that is effective, you must first understand the needs of your employees. What are their concerns, fears and challenges? By having an open and honest dialogue with your employees, you can learn more about their unique needs and experiences. Understanding your employees' needs will enable you to develop safety programs that address their concerns.

Empower your employees

It is critical to empower your employees to take ownership of their safety. Instead of simply providing them with a set of safety rules, involve them in the safety program's development. Encourage them to speak up if they see any safety concerns, and provide them with the tools and resources they need to make the workplace safer.

Use positive reinforcement

Positive reinforcement is a powerful tool in creating a safety culture. Rather than punishing employees for safety violations, reward them for following safety protocols. Positive reinforcement can include recognition, incentives and other forms of acknowledgement. Celebrating safety successes can also help reinforce the importance of workplace safety.

Train employees on emotional intelligence

Emotional intelligence training can help employees understand how to navigate difficult or stressful situations such as accidents or injuries. By providing employees with the tools to manage their emotions, you can create a culture of empathy and compassion in the workplace.

Provide support for injured employees or employees in recent accidents

In the unfortunate event of an injury or accident, it is essential to provide support to the affected employee. This support can include financial assistance, emotional support and access to healthcare resources. Providing support to injured employees can help build trust and strengthen your safety culture.

Remember, humanizing your workplace will set you apart from the competition. By prioritizing care and compassion, you will create a culture that lasts a lifetime. Your struggles managing employees will disappear, and your operation will become more profitable. Being human with your employees means recognizing their individuality, understanding their needs and motivations and creating a workplace culture that supports and empowers them.

AtLongLast, ThereAreDrivers Available

David Cooper Haldi Tech

After nearly three years of a pandemic-fueled freight environment, the unprecedented demand on logistic service providers has finally lifted. Spot market rates have been declining – really declining - down nearly 70% from February 2023 compared to February 2022, according to DAT.com’s “February 21st Trendlines Report.” During much of the last three years, FedEx TSPs operated at $2/mile below the spot market. Today, TSPs are operating at or just below the spot market rate. As TSPs, it’s easy to see what increased tractor and repair costs do to the bottom line, but do you know how spot rates affect businesses? Have you pulled the right levers to capitalize on the downturn in the spot market?

You may be asking yourself, “What’s a spot rate?” To clarify, these aren’t the rates FedEx pays for spot work within the FXG network. We’re talking about spot rates outside in the broader trucking world. In this article, spot rate can be defined as the average rate offered, via load boards, for oneway movements of freight from an origin to a destination. Spot rates can change quickly

and are often seasonal, yet always reflect the realtime relationship between shipper demand and carrier supply within a market. The coronavirusfueled e-commerce boom placed an immense demand on the carrier supply, driving spot rates to all-time highs. Recent declines in online shopping and other economic factors have brought the rate crashing to nearly sub $2/mile in some regions. The days of $5.85/mile going coast to coast with a dry van have come and gone.

You might ask why TSPs, should care. TSPs have a contracted rate, locked in annually, so what does this have to do with them? The reason is that much of a TSPs’ success and profitability come in the hiring process.

During the e-commerce boom, contractors were hit from every angle: truck and part prices skyrocketed (if you were lucky enough to be able to purchase them) and the inability to offer competitive hiring packages was a heavy blow. Contractors were being thrown more freight than they could handle, being pushed to cover six- and then seven-day operations, but the best drivers

were leaving in droves for other companies that were taking advantage of the increased spot rates and passing it on to the drivers. In some cases, drivers purchased a new – or fired up their old –tractor and hit the load boards themselves, using their own DOT authority to take advantage of the never-before-seen rates.

But now that spot rates are down, TSPs can fix a major problem in operations. As crazy as it sounds, now is a perfect time to hire. The number of drivers looking for a job is increasing daily, as carriers big and small are failing to keep the wheels spinning and money coming in as spot demand and rates continue to decline. In January and February of ’23, there were more

than 10,000 net deactivations of motor carrier authorities reported. If the supply of drivers looking for employment is increasing, and the amount of work is shrinking, what should happen to driver pay rates?

You might say, “My drivers aren’t getting enough miles as it is, why should I hire?” Maybe take a good, long look at safety. Can you afford to keep that problem driver? When driver supply is high, you can be picky, taking your time to dig through resumes and conduct thorough interviews. Unsafe drivers should be trained, and those unable or unwilling to adapt with the training need to be replaced. What if last year’s American Trucking Association State TDC runner-up is out

there looking for a job because his motor blew and the replacement engine cost too much?

Or you might say, “Yeah, but my drivers care about me. We’re like family, you know?” Does your family take money from you when you don’t get paid? Maybe don’t answer that question. Let’s think about minimums paid to drivers instead. As a driver’s pay creeps closer to 50% of trip revenue, TSPs will find it difficult to stay out of the red. Minimums should be just that: the minimum to get by, the maximum the contractor can afford to pay out when absolutely necessary. Does a driver who constantly takes advantage of minimum policies, possibly turning down miles without your knowledge, really care about you?

TSPs often find themselves on the outside looking in. When freight volume increases, the spot market rates follow close behind. When freight volume decreases, the likewise. Contractors can’t find a driver to hire when volumes increase, as carriers running the spot markets will pay north of $1.20/mile (roughly 68% of trip revenue) for company drivers. On the contrary, when the spot market decreases, drivers flood back the job listings. Are you prepared to improve your company culture and profitability by beating the bear (spot) market?

Historically, changes in the spot market are a very good barometer of what’s about to happen in driver availability. If all the other TSPs in your terminal found a new insurance provider that offered policies at 30% less than what you’re paying, you’d be quick to investigate that option and possibly switch. Perhaps look at driver costs and think the same way now that there’s an opportunity to rearrange your pool of driver talent.

HowWillCARBPrebuy ActivityAffectTransportation FleetsandtheirProcurement Plans?

Brian Antonellis, CTP Senior VP, Fleet Operations Fleet Advantage

A report released recently by ACT Research1 illustrates that a significant prebuy of Class 8 trucks may be likely before the Environmental Protection Agency’s (EPA) upcoming round of emissions regulations targeting diesel exhaust emissions in 2027 (note #1). ACT analysts believe the new standards will likely result in the largest truck prebuy ever, beginning sometime in 2025 or 2026. However, the industry may also face a large prebuy in 2023 ahead of the CARB mandate in 2024.

Why all the talk of prebuys? The California Air Resources Board (CARB) gathered recently and agreed to move forward with plans to mandate a transition to zero-emission trucks, shuttle buses and certain other buses beginning in 2024. Some industry observers believe these new mandates will further drive up the cost of diesel trucks to the tune of $25,000 - $30,000 extra per unit (note #2.

As details of the plan unfold, only zero-emission medium- and heavy-duty trucks would be available for sale in California starting with the 2040 model year. For federal and commercial fleets of 50 or more vehicles, or fleets that generate more than $50 million in gross revenue, any new truck purchased in California after Jan. 1, 2024, must be zero-emission.

CARB mandates will cause a spike in prebuy activity

However, vehicles with differing types and usages would have various phase-in dates, according to the CARB plan. As such, state and local governments would be required to obtain zeroemission vehicles amounting to 50% of the additions to their fleets beginning in 2024. All new purchases would have to be ZEVs beginning in 2027.

As more fleets become aware of the CARB mandates and plans, the other large unknown is how much of an impact this ruling will have on the truck procurement cycle.

Additional pressures to constrained supply chains

This could be problematic for many fleets already dealing with truck procurement cycles impacted by the recent supply chain disruptions.

Due to supply chain issues, fleets will be challenged to pull a high percentage of their 2024 calendar year purchases into 2023. It is important to note that existing engine platforms will be able to meet 2024 regulations – including diesel

particulate filter reconfigurations, fuel management systems and warranty extensions –to ensure timely repairs are made.

In meeting the 2027 CARB mandate, 2026 is expected to be the largest prebuy. The 2027 mandates will introduce natural gas, electric and hydrogen engine types, and many diesel platforms will have to make significant changes to meet these new CARB requirements.

Fleets taking a reactionary approach will suffer

The problem most fleets may run into is taking a reactionary approach to their procurement cycle in trying to join in on the prebuy cycles – which will further create problems in the supply chain of truck availability.

To combat this, fleets should rely on data analytics that produce fleet modernization plans to replace aging trucks with newer ones where they can lower their bottom-line costs over time.

Another reason asset management partners are so valuable is that they help to make data more actionable. Fleets today are inundated with data. Most fleets have maintenance software systems that will provide every repair and every line item. They also have ELD devices and onboard computers that tell you where you've gone, how many miles you've run, how heavy you were when you ran those miles and in what part of the country you were. However, companies need help today

taking all that data and saying, “What is the offering from the OEM? What is out there in the marketplace? What is the data that we've collected telling us? And how do we put that into a roadmap for the next one, three, and five years?”

Actionable data and procurement planning will help

This actionable data can also be used to prepare fleet modernization studies to help fleets inject more flexibility and business agility. These strategies are helping them pay closer attention to their truck’s life cycles to understand where they can save money by optimizing and shortening replacement cycles. Rather than extending the truck’s use for several years, companies are leveraging fleet studies that scrutinize performance data and economic factors to determine an optimum procurement strategy. Additional data is being used in emissions scorecards to evaluate and reduce a fleet’s carbon footprint.

The use of data and these analytical resources is important. As an example, organizations that operate in a contracted model like Fedex Ground where fuel is reimbursed by the mile, it’s even more critical to have newer, fuel-efficient vehicles and to understand your cost-per-mile metrics. Waiting to replace older vehicles could be a very expensive mistake.

The fleets that operate with the lowest cost of ownership are the ones that subscribe to this flexible and environmentally responsible procurement strategy, as opposed to the legacy, pre-pandemic mindsets that were built on gut instincts and a “this is what I know, this is what I trust, this is what I've seen” philosophy.

Asset management partners can also help fleets as they realistically bridge today’s clean-diesel technology into tomorrow’s alternate fuel options, through an appropriate ESG roadmap to determine truck procurement strategies with optimal life cycle management. This will maximize environmental considerations and organically progress toward alternate fuel technology. In doing so, fleets will achieve critical ESG goals and continuously operate the most appropriate it’s even more critical to have newer, fuel-efficient vehicles and to understand your cost-per-mile metrics.

There is a growing appetite for moving to zeroemission equipment. In fact, a recent industry benchmark survey2 found that a large portion of fleet executives said they plan to deploy alternate fuel trucks within the next one to two years. This is a stark comparison to just a year ago when the majority (54%) said they plan to deploy alternate-fuel trucks within five to 10 years.

In reading today’s headlines and recognizing the CARB mandates, fleets understand the importance of transitioning to a greener footprint. Still, the application must be appropriate for each fleet and its operations. For example, Fleet Advantage has a high level of confidence with Battery Electric Vehicles (BEV) in operations close to the warehouse. We are excited about deploying electric yard trucks with our customers because we’re getting a diesel truck off the road, and we can control the charge point. The truck is not leaving the yard, it's running all day, and it's generating a lot of hours.

The next step is to shorten the range for deliveries around town. For example, think about food or beverage distribution and local

commerce extending 50, maybe 75, miles a day and back. If you go right up against that 200-mile limit, you start giving everybody range anxiety. It’s important to make sure this fits their business because it’s crucial to avoid that anxiety for the drivers.

Finally, it's about fitting into a fleet’s life cycle when you have identified the right areas that make sense close to the distribution network. It’s not feasible for someone who's going 500 miles a day since the charging infrastructure is not ideal on the highways. Therefore, it is important to leverage utilization data to identify what percentage of electric is going to fit into a fleet over the next one, three and five years. This is identified through actionable data, which includes routing data and annual miles, so we can target individual distribution centers to put the trucks in the right place so that they're successful.

All of this means that forward-thinking fleets leveraging strategic asset management partners and actionable data will avoid the need to react to prebuy cycles enabling them to focus on their operations and realize a lower total cost of ownership while transitioning to emission-free trucks over time.

Notes:

#1: https://www.truckinginfo.com/10180199/isthe-largest-truck-prebuy-ever-on-the-horizon

#2: https://www.trucknews.com/blogs/newemissions-regs-will-arrive-in-2027-and-chaosmay-ensue/

LinehaulSummit2023

Thebestandbrightest gatheringinDallas thissummer

Last summer in Dallas, the linehaul community had its first-ever tradeshow dedicated to linehaul TSPs. Almost 500 people attended the event, and it’s scheduled to happen again this year at the end of June. (Check out http://linehaulsummit.com for more info!)

We had a chance to catch up with the founders of the event: Flint Holbrook, Alex Frum, Tim Goff and John Haldi to learn more about how the Summit came about and what to expect from this year’s event.

What was the inspiration behind the Linehaul Summit?

Alex: FedEx doesn’t provide a how-to manual for contractors. We needed a way to bring TSPs together to share experiences and learn from each other.

Flint: We do business with a lot of contractors and they were coming to us – a vendor – with questions unrelated to our services about how to run their businesses better. It was obvious to me that we needed a way to share best practices.

Tim: We wanted to not only learn from contractors, but also learn from vendors and understand what vendors bring to the table in terms of adding value to a TSPs business.

John: There were other trade conferences out there, but they focused on P&D for the most part. Linehaul TSPs who were there felt very marginalized, and it was clear that the TSP world is so very different from the CSP world, and it needed its own dedicated conference.

Flint Holbrook CEO, TruckSpy

Alex Frum CEO, Alpha Kilo Logistics

What are you hoping Linehaul Summit can do for the TSP community?

Flint: Plain and simple, I’d like to make contractors more profitable. Selfishly, as a vendor, I would like to see the community grow and for individual contractors to make more money. If TSPs aren’t successful, there’s no market for my company to serve, so TSPs need to be successful if my company is going to grow.

Tim: I’m TSP and a vendor, and I know firsthand how challenging the environment is for TSPs. If we don’t come together and share knowledge, we’re facing an uphill battle trying to operate safely and profitably. FedEx is going through serious internal and external challenges, and those challenges are also manifesting in the contractor base. The Ground network is under great stress, and it’s being felt in the linehaul space. It’s really important that we all work together to strengthen the network, and the best way to do that is to help all contractors improve their individual businesses.

John: There are a lot of things that are outside of a TSP’s control, but the biggest thing a TSP can control is running their business intelligently with all the best information possible. The notion of every TSP trying to learn every lesson through trial and error is a huge waste of everybody’s time and money. The solution is coming together to share knowledge and experience.

Alex: I’m hoping the Linehaul Summit can make us all better operators within the contractor community. When I operate more efficiently and effectively, it not only benefits me, but it benefits every contractor I bump with because my tractors are going to show up to the bump on time and so are theirs. Not only do I need to operate a good business, but other TSPs should operate a good business, and if we’re all better operators, that makes the network stronger, and it makes FedEx more competitive.

Tim Goff CEO, mygroundforce

What did you learn from last year's event that is helping you this year?

Tim: I brought my entire management team to the Summit in 2022. Most of them were new to the FedEx world. I had managers who attended all the sessions in each of the three training tracks, and the Summit kick-started my management team to reach a higher level of expertise.

John: The Summit taught me two things about the TSP community: 1) For those TSPs who are actively trying to improve their business, the Linehaul Summit hit a bullseye; and 2) we have a lot of work to do because there are a lot of TSPs who don’t even know the Linehaul Summit happened. If we want to serve the entire community, we need to find a way to reach them – because they’re probably struggling compared to the people who were in Dallas last summer.

Alex: The biggest three things I learned last year were how to coach my drivers better, how to more effectively manage my fleet’s maintenance

John Haldi CEO, HaldiTech

program and how to improve my employee handbook.

Flint: The Summit was encouraging to me. Most of our business is conducted remotely so it was really good for the soul to meet everybody face to face.

What should attendees expect from this year's event?

John: Attendees should expect to get three things from the Linehaul Summit: 1) knowledge on how to run their business better; 2) new friends and peers to build a network to help them as business owners, and 3) access to all the best solutions from vendors catering to the TSP community. Oh, and to have a lot of fun! So that’s four things –sorry.

Alex: Attendees should expect an opportunity to interact with, learn from and share best practices with other contractors.

Flint: There are several networking and best inclass education sessions... don't forget about the open bar!

Tim: There will be outstanding training opportunities, you’ll be able to discuss best practices amongst contractors and have access to world-class vendors who can provide solutions to address the challenges faced in a linehaul business.

What can sponsors expect from this year's event?

Alex: Sponsors will find the largest single gathering of FedEx Ground linehaul contractors looking for ways to operate more efficiently and effectively.

Flint: They'll get to meet contractors who are interested in improving their businesses in an open forum.

Tim: Sponsors can look forward to addressing a huge percentage of the FedEx Ground linehaul contractor ecosystem all in one place. They will find these entrepreneurs hungry for solutions to help them operate more efficiently and improve profitability. There is no event that will provide companies that are focused on the FedEx Ground linehaul market more access to potential customers than the 2023 Linehaul Summit.

John: One of the best investments we made in last year’s Summit was spending the time to personally speak with all the sponsors and many of the attendees. We’re trying to improve upon the things we did right and to avoid repeating any mistakes we made last year. Sponsors should expect this year’s event to be bigger and better.

Any ideas on future Linehaul Summits and what’s in store after this summer’s event?

Tim: I expect that the Linehaul Summit will expand to quarterly regional events spread out around the country to enhance the opportunity for contractors who can’t travel to Texas to be able to go to a local event. We, as the founders, are laser focused on doing everything we can to strengthen the linehaul contractor network, and the Summit goes a long way in helping that effort.

John: I think the Linehaul Summit will continue to evolve to serve the needs of the TSP community. Feedback from last year confirmed our belief that there are a large number of TSPs who want to stop living in a bubble and want to step up their game. That number is going to grow, and we want the Summit to continue playing a crucial role in helping TSPs be as successful as possible.

Flint: I think it will continue to grow. Contractors really valued the educational sessions and took away tactical learnings that they implemented in their businesses. I expect the Summit to continue that focus. It's an inexpensive way for contractors to learn best practices.

Editor’s Note: If you are interested in attending the event, you can find more information at http://www.linehaulsummit.com. The Linehaul Summit is offering Linehaul News readers a special rate of $75 per ticket between now and the end of April. If you haven’t gotten your ticket yet, we suggest you take advantage of this offer to secure your spot in Dallas. Use promo code LHN2023 at checkout to get the discount.

2022 FedEx Ground Entrepreneurs of the Year

GWC Trucking, Inc., Hagerstown, Md. (Owners Will Caceres and Gonzalo Caceres)

Black Enterprises of WNC, Inc., Asheville, N.C. (Owner Tyrone Black)

Lerma Transport, Inc., Yuma, Ariz. (Owner Saul Lerma)

Congratulations to all three of them on this achievement!

Gary Martin excels at the truck driving competitions

Lytx Safety Leaders

Every month Lytx picks a customer to celebrate for their outstanding KIs. Congratulations to the following recent winning TSPs:

S and T Trucking Inc. (November ‘22)

Hernandez Corp (December ‘22)

Blackburn Transportation Group Inc. (January ‘23)

We’ll let Gary Martin of Gary Martin Trucking tell it:

"I’ve been in the trucking industry for over 42 years. I started driving a truck at 18 years old, and started my own business when I was 20. We have been in business since 1982, the last 22 as a contractor for FedEx Ground. The Truck Driving Championships have been a big part of my life, and being fortunate enough to have done really well in virtually all the competitions I’ve entered has allowed me to meet people and see and do things I wouldn’t have had the opportunity to do had I not competed. I’ve been able to use these experiences to not only help build my business, but to train my drivers, and also to become an ATA’s America’s Road Team captain."

Safety

Few FedEx Key Indicators (KIs) are going live on June 1, 2023. The FXG-TSP VEDR contract standard is staying with four KIs, but the goal of this KI focus change is to reduce the riskiest driving behaviors so each KI is a behavior trying to get improved:

• 2.0 KI value per month for speeding 10mph (US)/15kph (CAN) over the posted limit

• 2.0 KI value per month for distractions of driver, specifically handheld electronic devices (cellphones, GPS, tablets, etc.)

• 2.0 KI value per month for seatbelts not worn by any person in driver or passenger seat

• 5.0 KI value per month for Linehaul only: following distance of less than 3 seconds

The ongoing performance results of four out of four KIs is also still part of the VEDR contract to further ensure safety when operating under an agreement with FedEx Ground. The VEDR Program allows up to a certain number of events for each behavior, based on the average number of active VEDR devices in the TSPs fleet for the given month, so be sure to update your contract ID (CID) and CSP ID inside of your VEDR provider's portal. Also, make sure all your VINs and vehicle numbers are correct because the higher average quantity of active VEDR devices, the better the KI scores. (It should also be easier to comply during longer months.)

In addition, VEDR vendors should create four categories of vehicle status where VEDR continues to work, but VEDR data doesn't count toward your KI calculations. These are as follows:

• Maintenance – vehicle is in the shop

• Other contractual use – performing other work NOT under an agreement with FXG

• Personal conveyance – vehicle used for personal business

• Service provider to service provider rental – Service providers leasing vehicles on Schedule B / Addendum 1 to other service providers

More background information about VEDR: VEDR systems capture video and vehicle data before, during and after a collision or other triggering events, providing a comprehensive account of the event. Service providers also agree to outfit rental equipment and any CMV/CV used on a temporary basis with a portable VEDR system, and portable VEDR units can be installed and uninstalled as needed in any vehicle type. The data captured on these temp units will not be utilized in the recording of KIs or in the KI calculation for the company. Service providers agree to equip all vehicles listed on Schedule B / Addendum 1 with a VEDR system that enables verification and recording of KIs and to maintain the ongoing maintenance of four out of four corresponding KIminimum thresholds. Service providers agree to ensure the VEDR safety technology is maintained in operating condition according to the manufacturer’s standards. This includes ensuring that both forward-facing and driver-facing cameras are operable and unobstructed.

This FXG site (https://www.mygroundbiz.com/safety/safety-technology/vedr) is most helpful in understanding the VEDR and KIs with links to files that explain/measure/calculate these new KIs along with useful FAQs.

Drivers

Drivers, TSPs and FXG are all feeling impacts from California Highway Patrol and other states cracking down on lack of education for HOS-related ELD requirements.

Top ELD violations despite the mandate being in effect and enforced for more than three years are as follows:

• Failing to use an ELD correctly (Inspection mode even before HOS or form and manner violations)

• Displaying the ELD to inspector outside vehicle (having enough cord length and unmounting)

• Inability to electronically transfer logs (several methods allowed)

• Failing to have in-cab ELD docs/manual (digital version in-cab now allowed, but must demonstrate)

• Failing to mount portable ELD (for trip leased or rented equipment)

• Unassigned drive time (reviewing and accepting/rejecting)

• Misuse of Personal Conveyance status

• Properly power up and down the ELD (correct reporting of ELD malfunctions)

This should be the most basic responsibility of the professional CDL driver but shouldn't be overlooked in your FXG TSP business. Don't be naïve. Even the 30 years + drivers get hit with these FMCSA violations due to lack of knowledge/training, which is causing rising CSA scores and out of service for FXG and TSPs, and can affect the finance department with steep fines and potentially loss of contract. See here for more: https://www.mygroundbiz.com/news/2023/hos-eld-and-pc-factsavailable-to-print-distribute

Equipment

It’s possible in the future for LH, but for now, only the P&D side gets a new rental fleet management portal inside MyBizAccount.Fedex.com. The Service Provider Vehicle Portal (SPVP) is an efficient, modern application that the FXG Fleet Maintenance department just launched to streamline the process of qualifying rental vehicles for use under the terms of the U.S. Independent Service Provider Agreement and Canada P&D Service and Equipment Agreement. LH TSPs might see a modern tool to streamline FXG LH trip leases in a few years.

Business

Business - Image Authority is the exclusive FXG apparel vendor, and per the FXG TSP contract, if drivers are wearing FXG apparel, the embroidery of the TSP name must be applied but is limited to 22 characters. See here for more: https://www.mygroundbiz.com/discounts-vendors/othervendors/ordering-apparel

Also, FXG announced recently that all FXG drivers should display their FedEx badge more visiblyat or above waist level and on the outermost garment at all customer facilities. See here for more: https://www.mygroundbiz.com/agreement/general-agreement-information/service-providerapparel-terms

To allow for some back-end system improvements, which should yield a smoother experience, there will be a delay of the 2023 Annual Compliance Certification (ACC) and Due Diligence Questionnaire (DDQ). These usually happen in the early Spring, and FXG is expecting to distribute these in Summer 2023. More details will be released late spring.

MVRs are more important now because drivers no longer need to submit their Annual Certification of Violations to FMCSA. With this change, FXG has dropped form BD-048, and First Advantage no longer needs this document. As of February 1, 2023, First Advantage will instead run Motor Vehicle Records (MVRs) for service provider drivers prior to the MVR expiration date. Since any TSP driver found not to be qualified during this MVR review will be disqualified, now it is critical for TSPs to do the following:

• Ensure license information is updated in the driver qualification file with First Advantage when personnel receives a new driver's license.

• Review the MVR expiration date in the driver qualification file for all drivers.

• Monitor the driver qualification file to ensure personnel remain compliant.

Industry Wide

All mobile carriers now require you to register your brand, campaign and phone number assignments into The Campaign Registry (TCR) before enabling SMS functionality. While this is technically for businesses that are marketing or soliciting, most of the phone/text companies are joining in and requiring account registration, so this is effectively required regardless of how you currently utilize SMS. As of March 31, 2023, any 10-digit phone number without a brand-specific campaign will have SMS disabled per the TCR and other carrier websites. If you are using a 10digit phone number on any application platform (RingCentral, 8x8, CallHub, Textline, MessageDesk, EZ Texting, Twilio, Vonage, etc) to text end users (drivers’ cell phones), then you should register to continue being able to text drivers. You can check out the official website here: https://www.campaignregistry.com/

For an in-depth and more thorough understanding from one of the application platform designers, click the video below.