August 29, 2022

Fuel, Labor, and Supply Chain: Delivery Fleets Face Negative Margins

Fast Forward videos talk all about the future of fleet and are hosted by Fleet Forward Editor Chris Brown.

 

In today’s video, Spencer Patton, owner of Patton Logistics, explains the challenges of delivery fleets in the face of inflationary pressures around fuel costs, wages, and supply chain issues.  

 

This episode was recorded on Aug. 23, days before Patton would be sued by FedEx Ground and have his contract terminated. 

 

🎙Topics & Timestamps🎙

  • 0:00 Intro
  • 1:10 Patton shares the market size and scope for FedEx Ground and Amazon contractors and differences between the two models.  
  • 3:45 How inflationary pressures around fuel costs, wages, and supply chain uniquely impact delivery fleets.  
  • 6:50 Overview of ISPs’ relationship with FedEx Ground around safety, indemnification, and driver hiring.  
  • 9:15 Tactics ISPs are using to reduce costs and increase purchasing power in the face of inflationary pressures.  
  • 15:12 A new trade association for logistics professionals and its mission. 
  • 17:00 Patton explains #PurpleFriday.  

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