What Is a FedEx Ground Schedule A-1 and Why Does It Matter?

10 minutes ago

6 min read

If you're looking at buying FedEx Ground linehaul runs, there's one document you should become familiar with early in the process: the Schedule A-1.

It is an attachment to the FedEx Ground Transportation Service Provider Agreement (TSPA). You may hear contractors, brokers, or buyers casually refer to it as the A-1.

For a buyer, the A-1 is important because it helps identify the linehaul runs held under the contractor's agreement with FedEx Ground.

Since we believe buyers should start by understanding the individual runs they're acquiring, this document should be one of the key documents reviewed during due diligence.

What Does the A-1 Show About FedEx Linehaul Runs?

The A-1 identifies the linehaul runs held under the contractor's agreement.

Depending on the run and agreement, it may include information such as:

Run number or position
Origin and destination structure
Scheduled service days
Availability or service requirements
Whether the run is assigned or operates as an unassigned run

This gives buyers a much better starting point than simply looking at a listing that says the seller has four, six, or ten runs.

The number of runs alone doesn't tell you much.

You need to understand what those individual runs actually are.

Why The A-1 Matters When Buying Linehaul Runs

One of the easiest mistakes buyers can make is starting with the seller's revenue or profit before fully understanding the runs included in the transaction.

We prefer to look at it in the opposite order.

Start with the runs.

What positions are listed on A-1?

Are they assigned runs or unassigned positions?

What does each run look like? How many miles does it cover each day, how many days is it scheduled to operate, and how consistently has it actually run?

Once you understand the runs, you can begin looking at how the seller currently operates them and what you may be able to do differently after taking ownership.

That's an important distinction.

You're not necessarily buying the seller's way of operating those runs.

A new owner may change the equipment, staffing, maintenance practices, management, and other parts of the operation, provided those changes continue to meet FedEx Ground’s contractual, safety, service, and operating standards.

The runs are the foundation of the opportunity.

The A-1 helps you understand that foundation.

Assigned Runs and URRs Under the Agreement

The document may include both contracted assigned runs and contracted URRs (Unassigned Run Rotation).

Assigned runs generally follow a more consistent schedule and service structure.

URRs provide more flexibility. The specific movement may rotate rather than following the exact same route every day or week.

Both can hold value.

The key is understanding exactly what is contractually listed under the contractor's agreement.

This is also where buyers need to be careful.

A seller may perform additional work that appears on settlement statements but is not listed on A-1.

That additional work could depend on terminal demand, available volume, coverage needs, or the seller's existing operating relationship.

That doesn't automatically make the additional work less valuable or unimportant.

It simply means buyers need to separate:

What is included under the agreement?

from

What additional work has the seller historically been performing?

Those are not always the same thing.

What Schedule A-1 Does - and Doesn't - Tell You

It is important, but it doesn't tell the entire story of a linehaul opportunity.

It tells you what runs or positions are listed under the contractor's agreement.

It does not mean every movement appearing on the seller's settlement statements is contractually included.

For example, settlement statements may show revenue from additional work the contractor has been performing because of network demand or other operational needs.

A buyer shouldn't automatically assume all of that work transfers with the contracted runs.

This is why A-1 and settlement statements should be reviewed together.

The document helps answer:

What runs are contractually listed?

Settlement statements help answer:

What work has the seller actually been performing and getting paid for?

Then the buyer can identify any difference between the two.

That difference can be very important when evaluating the value of the opportunity.

Contracted Doesn't Mean Guaranteed

A run listed on A-1 is part of the contractor’s current agreement with FedEx Ground. However, buyers should not assume that the run will operate every scheduled day or remain unchanged indefinitely. Actual activity may vary because of package volume, network needs, service performance, and the terms of the agreement.

The runs remain subject to the terms of the contractor's agreement with FedEx Ground.

It sets the required Availability Level and Service Level for each run. If the contractor does not maintain those requirements, the run may be subject to forfeiture under the terms of the agreement.

For buyers, the takeaway is simple.

The A-1 is strong evidence of what is currently held under the contractor's agreement, but it shouldn't be treated as a promise that nothing can ever change.

That's why understanding the agreement itself is also part of proper due diligence.

Don't Let the P&L Be Your Starting Point

Buyers naturally want to know how much money the seller makes.

That's understandable.

But a P&L reflects how the current owner operates the runs.

Imagine two contractors with similar run structures.

One may have higher payroll costs, older equipment, frequent maintenance expenses, or inefficient management.

Another owner might operate similar runs with completely different economics.

That means the seller's current profit isn't necessarily the only way those runs can perform.

This is one reason we don't like evaluating FedEx Ground linehaul opportunities solely by applying a multiple to the seller's cash flow.

You need to understand the runs first.

The A-1 is one of the documents that helps you do that.

A Simple Example

Imagine you're looking at an opportunity advertised as having four linehaul runs.

The seller's settlement statements also show revenue from several additional movements.

At first glance, a buyer might assume all of that work is part of what they're acquiring.

Then you review the document.

You find that four positions are listed under the agreement, while some of the additional activity appearing on the settlements isn't.

Now you have a much better question to ask:

How much of the seller's recent revenue comes from the contracted runs, and how much comes from additional work that may depend on current terminal demand?

That's much more useful than simply looking at total revenue.

From there, you can evaluate each run, understand the additional work, and decide what the opportunity is worth to you.

What Else Should You Review?

The A-1 should be part of a larger due diligence process.

Buyers may also review:

Recent weekly settlement statements
Profit and loss statements
Tractor information and maintenance records
Driver payroll
Equipment financing
Insurance and other operating expenses

The purpose isn't to collect documents just for the sake of having them.

It's to answer the questions that actually matter:

What runs am I acquiring?

Which work is contractually listed?

What additional work has the seller been performing?

What are the individual runs worth?

What comes with them, and what will it cost me to operate them?

Those questions give you a much better foundation for evaluating a linehaul opportunity.

Looking for FedEx Ground Linehaul Runs for Sale?

Once you understand how to review the document, the next step may be finding opportunities to evaluate.

Linehaul Solutions works with FedEx Ground contractors across the country who are preparing to sell their linehaul runs.

You can browse our current FedEx Ground Linehaul Runs for Sale to review available opportunities and start comparing the runs, financial performance, equipment, and other details associated with each listing.

Finding a deal is only the beginning.

Understanding exactly what you're looking at is where the real evaluation starts.

Take a Deeper Look with Linehaul IQ

If you've found a FedEx Ground linehaul opportunity and want help evaluating it, Linehaul IQ is designed specifically for that process.

We review the information behind the deal, including A-1, settlement history, individual runs, financials, equipment, and other factors that can affect the acquisition.

Our focus isn't simply on how the seller operates the business today.

We want to help you understand the runs you're acquiring, what the supporting operation looks like, and where there may be risks or opportunities after closing.

The goal is to give you a clearer picture before you make the investment.

FedEx Ground A-1 is one of the most important documents to understand when evaluating a linehaul acquisition because it helps identify the runs held under the contractor's agreement.

But it shouldn't be reviewed by itself.

Compare it with the settlement statements.

Understand which runs are contractually listed.

Identify any additional work the seller has been performing.

Then evaluate the individual runs before moving on to the trucks, drivers, expenses, and current operation surrounding them.

That's a much stronger starting point than simply looking at revenue, profit, or an asking-price multiple.

Continue Your Due Diligence

Keep building your understanding of FedEx Ground linehaul acquisitions:

Assigned Runs vs. Unassigned Runs: What's the Difference?
How to Read a FedEx Ground Linehaul Settlement Statement
What Makes a FedEx Linehaul Run Valuable?
How to Buy a FedEx Ground Linehaul Business