In September 2018, FedEx Ground announced its US operations would convert to a 6-days-per-week schedule following the holiday season.
That change is upon us now!
A couple new things to note as you work through the transition with your own FedEx Ground team.
Negotiated Charge Increases
Some contractors are reporting increases from FedEx Ground ranging from $0.08-0.25 per stop and roughly $0.04 per package to offset the costs associated with moving their operations from five days per week to six days per week.
This means that there may be additional revenue coming your way as you evaluate current opportunities on the market.
The Impact to P&D Routes
P&D operations adjusting to the new six day week have two primary options:
First, P&D can have two “teams.” We’ll call them Team Purple and Team Green. In this scenario, Team Purple would work Monday through Friday and Team Green would work Tuesday through Saturday. This option works for man operations because Mondays and Saturdays tend to be lighter days.
A second option—for operations that have heavy Monday deliveries—is to run a single full-time team Monday through Friday and hire a part-time Saturday staff.
The Impact to Linehaul Runs
Short mileage linehaul or spot work will feel more impact from the shift to six days per week than higher mileage team linehaul runs that are at or near max capacity within their week. Adding an additional day to the schedule will not likely change operations for high mileage team operators because they are unable to complete an extra turn in that one additional day.
On the other hand, shorter mileage linehaul runs may be able to complete additional turns with the extra day. Moreover, shorter mileage drivers and teams may have more available Department of Transportation (DOT) hours of service left in their week, allowing them to add another day of operations without violating DOT rules. For example: If you have a driver who typically has a 6 hour/day run and you move to 6 days, he is still only reaching a 36 hour work week, so you have a lot of cushion to increase.
As a reminder, the DOT hours of services prevent anything over 14 continuous hours of driving and 70 hours of driving per week. After 70 hours, drivers must complete a 34 hour reset.
Linehaul Sample Schedule
As a current FedEx Ground Independent Service Provider (ISP) and a consultant to many other ISPs, we are thinking through the best way to structure a team in this changing landscape.
To help you through your own thinking, we’ve put together a resource that models possible six day per week scheduling structures for linehaul operations. As we mentioned, these are particularly impactful for linehaul runs with shorter runs or spot work.
Download this resource now and if you need more help thinking through your business structure and efficiencies, reach out to our team.