Updated: Aug 25, 2022
There are two types of run contracts in the FedEx Ground network:
Assigned Contracts (aka Dedicated)
Each of these contracts can be run as either a solo or as a team.
These variations make up a total of four run contracts:
Each of these four contracts has unique pros and cons.
This is arguably the “best” type of run in the FedEx network. As an assigned run, you know the exact mileage and revenue generated each week. Solo runs are also easier to staff than a team run. Each run itself is unique because of mileage, dispatch time, and driving geography. An assigned solo run with short miles or shuttle runs may not be as valuable as an unassigned run.
Unassigned runs tend to be misunderstood by new contractors who are not familiar with the FedEx system. Similar to an assigned run, an unassigned run is a contractual position. Each domicile has an unassigned rotation, sometimes referred to as the unassigned board, with a limited number of trucks assigned to it. There are two unassigned boards - AM and PM.
Each day, FedEx dispatch will call each of the trucks to offer them work during their usual dispatch time - e.g. AM is usually around 6am - 9am and PM is from 11pm - 2am, although it may change depending on the location. You don’t know exactly where you are going each day until you receive dispatch info from FedEx. Because it is a solo run, the driver must return to the station that day, which typically limits the maximum one way to distance to 300 miles. Even though you don’t know the exact mileage, the trips are typically between 400 - 600 miles round trip per day and usually have a consistent average week to week.
Assigned Team Runs
As an assigned run, this contract has a fixed dispatch time and days of the week it runs. Because it is a team run, there is no limit to how many miles it can be. A team run can be as short as 400 miles or as long as 4,000 miles from Seattle to Orlando.
Unassigned Team Run
An unassigned team run has effectively no value to contractors. Unlike an unassigned solo run, which has to return to the domicile each day, an unassigned team run can dispatch from anywhere to anywhere. For example, a team domicile in Kansas City could be dispatched to Dallas, and then be sent anywhere in the country - they do not need to be sent back Kansas City. This makes it nearly impossible to predict the mileage and revenue that this run would generate.
More importantly, there is a severe shortage of team drivers throughout the FedEx network. Because of this shortage, if a contractor has a team available, they can run them without an unassigned contract - FedEx will happily find them work. The pay and everything else will remain identical. Additionally, by running it without an unassigned contract, the contractor has no obligation to avoid declining runs or risk the penalties associated with losing a contractor.
The only benefit to an unassigned team run is that you can begin accumulating “points” on that contract and use it to bid onto more stable or profitable opportunities. However, this strategy is best used in small or new domiciles with less established competition. Depending on your individual situation, receiving an unassigned team run contract directly from FedEx may make sense, however, there is usually no justification for purchasing one from another contractor.