wayneygogo
Seasoned Expediter
I am truly inspired. I just jumped out of my van and rent around the Walmart parking lot tune I wonder who these people are there that are following me
Cheap Freight to No Freight
- Thread starter deadhead
- Start date
wayneygogo
Seasoned Expediter
By the time you read this, the FMCSA should have announced more definite guidance for implementation of the new United Registration System or the URS. In the works for more than 10 years, the URS will radically change the way carriers, brokers and forwarders must communicate with the agency.
A preview of the new program was announced in April of 2013 with a hard effective date of October 23, 2015, but little detail has yet been provided. The implementation of the URS will introduce massive changes including the following:
Over 200,000 exempt and private carriers which previously have been assigned DOT Numbers but have not filed evidence of insurance and agents will be required to make filings. These enrollments will have to be made by insurers and agents for service of process electronically. The date for compliance for agents is not until April 2016 but so far there is no extended compliance date past October 23 for submission of insurance information.
A preview of the new program was announced in April of 2013 with a hard effective date of October 23, 2015, but little detail has yet been provided. The implementation of the URS will introduce massive changes including the following:
Over 200,000 exempt and private carriers which previously have been assigned DOT Numbers but have not filed evidence of insurance and agents will be required to make filings. These enrollments will have to be made by insurers and agents for service of process electronically. The date for compliance for agents is not until April 2016 but so far there is no extended compliance date past October 23 for submission of insurance information.
wayneygogo
Seasoned Expediter
Will these regulations help our industry. Will the d.o.t follow up on a carrier's insurance submittal. It's like when a driver shows proof of insurance to a carrier and then cancel the insurance. So if dot monitors a carriers insurance, Whitney carrier expect more money from a broker to offset the cost of insurance. Which in turn could raise our rates, if we had an honest carrier. I'm lucky I do. It sounds like a carrier's insurance agent would have to submit proof of insurance to dot and hopefully report any changes in the policy. and after that what are the repercussions.
Problem is the ability to monitor the insurance on sub units for the carriers that do not provide the insurance coverage. My opinion if you are hauling freight under a carriers dot number the carrier should be the one required to provide primary coverage not the owner operator.
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that would be quite doable for a guy like me....Murray aka Crossroads would buy the primary policy and I would pay the breakout amount of what my unit costs to him in return.
BUT that does nothing to control the one man operation....
Btw..Thought your organization had that verification program in place....
IMO lack of insurance is not the biggest problem out there....it is not really going to help you all that much
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Well TEANA had a program but it failed to get the level of verification that was needed. People and companies and even insurance agents continually kept finding was to cheat and the fraud was just too great for it to work.
The one man operation can be risky. Personally we don't deal with a carrier with less then 10 units generally. Not that some smaller carriers are not good. We just found greater number of issues in that group so we chose to reduce our exposure.
I think you are very wrong on the magnitude and effect of the insurance issue. It truly surprises me that the owner operators such as yourself that properly insure don't find the issue to be that upsetting. These other carriers and owner operators are taking money out of your pocket every day. Sadly most don't realize how much these bad players are costing the rest.
The one man operation can be risky. Personally we don't deal with a carrier with less then 10 units generally. Not that some smaller carriers are not good. We just found greater number of issues in that group so we chose to reduce our exposure.
I think you are very wrong on the magnitude and effect of the insurance issue. It truly surprises me that the owner operators such as yourself that properly insure don't find the issue to be that upsetting. These other carriers and owner operators are taking money out of your pocket every day. Sadly most don't realize how much these bad players are costing the rest.
Under insured has always been an Issue I believe....just maybe not on this magnitude....do I think that extra .05 to .08 extra cost for the right insurance is an issue?....Not really.....The REAL issue is the added layers of brokers and people dipping into the pie before I even see the money....Really 4 pls now?....I realize the onion effect has always been a part of trucking....but the layers we have now are staggering....You want to put REAL money in my pocket...try to find way to peel a layer or two of that onion away....the fact a load goes from shipper, to thier agent, to a 3pls like say Bounce and then to say Tri state and then yet again sold to me....thats where the real money is....IMO
I think you answered your own question. The under or non insured is the very reason these types of broker layers exist. Without people to run the freight cheap, it wouldn't exist.
No need to complicate the simple. lol
Small carriers need brokers and bigger carriers. How else would a small carrier procure freight all over the country? Large carriers bear the expenses of paying for teams of sales people and all the expense that goes with it.
Carriers are forced to compete in a market that places too great a value on price vs service, insurance, compliance etc. so when carriers who skimp on these areas it often forces other carriers to lower price to compete. So those carriers or owner operators that you don't think are a big issue just help push down the market.
Carriers are forced to compete in a market that places too great a value on price vs service, insurance, compliance etc. so when carriers who skimp on these areas it often forces other carriers to lower price to compete. So those carriers or owner operators that you don't think are a big issue just help push down the market.
I completely understand your thoughts here... One word that I would add would be "Loyalty"... If we had more Loyalty we would have better rates...
But how much profit does one need??? ...
Does a carrier and broker have a min./max. profit required on all loads (pre-set per business plan, etc. to keep afloat and earn a profit) or is it a minimum and/or get as much as you can on the maximum side...
I've seen too many times where Shipper contacts Broker, Broker contacts Carrier, Carrier does not have any trucks in the area and sub-contacts out load to smaller carrier... Or the carrier has trucks in the area and will still look for a sub-contractor to make more money than if they put it on their own trucks... (i.e. their contracted line haul is 80% or 85% and can have a sub-contractor at 70%) Broker takes 30% or higher, Carrier takes 30% or higher, and small carrier takes 15% to 20% and leaves us (as an independent owner/operator) at the end of the line with sub par rates of below a $1.00 per mile....
We had a successful Environmental Business where we had a min. margin we needed and would gain additional margin through performance of ourselves and our sub-contractors as well as increasing sales each year... Our Insurance Requirements from our Customers were 10 Million across the board, General, Professional, Commercial Automotive, Errors and Omissions, etc. and only required our subs to carry 1 Million and we covered the difference... We have a saying that we would rather make 5 nickels than two dimes... We had a very loyal sub-contractor base that knew if we made money, they would make money and would never take advantage of them by "Grossing Large Profits" off their backs...
Just My Humble Opinion, of course....
I find it ironic that John and his band of merry gentlemen are now chasing the same dime I've been looking for since 2008....
In a perfect world and everyone became insured... The dime is at most it would add to a mile... So instead of say .60 they'd have to ask for .70 which would solve everyone's problems it appears. IMO
In a perfect world and everyone became insured... The dime is at most it would add to a mile... So instead of say .60 they'd have to ask for .70 which would solve everyone's problems it appears. IMO
but they do it for cheap ive been home for 2 months not gonna run for nothing,price of fuel will go up some day and they will still run cheap until they go out....Sylectus being a software company....they couldn't give a rats arse what happens in the expedite side itself....just sell the software...
I don't begrudge the Russians, Romanians, Polish, Chez Ukranes anything...they are living the American dream like your forefathers....at least they are working...
no one promised you a decent living just the opportunity to make one..even if it takes 2 jobs to achieve that...
BTW...I am Canadian...and also trying to take your job.....
Don't flatter yourself with thinking you know my business sir.
. I admit to not knowing the workings of a sprinter owner operator nearly as well as you. Not sure if you are equally as versed on my side.IMHO of course.
You're showing them...
but not taking cheap freight lets me go play golf here in florida
I think there are several headwinds outside of the elusive dime. Insurance, rates, foreign competitors, unregulated trucks, companies trying to maintain the same margin of profits from years past (some is shareholder driven), higher equipment and operating costs (and the operating costs spread to the carrier through higher wages, insurance, you name it), lack of transparency and the list keeps going.
Most of it is market driven. Little by little as I have said before, carriers can be their own worst enemy by creating their competitors. But make no mistake about it, it is hardly limited to the transportation industry. You see this same thing whether in the restaurant business to literally anything retail. The family is heavily involved in the health industry and agriculture. Makes trucking a cakewalk by comparison. lol
Fortunately, I can sell an extra bale of hay and get my dime.
Most of it is market driven. Little by little as I have said before, carriers can be their own worst enemy by creating their competitors. But make no mistake about it, it is hardly limited to the transportation industry. You see this same thing whether in the restaurant business to literally anything retail. The family is heavily involved in the health industry and agriculture. Makes trucking a cakewalk by comparison. lol
Fortunately, I can sell an extra bale of hay and get my dime.
Exactly Dave.... Motel business comes to mind as well.... Big chains build new facilities and sell the older ones that in turn compete against them.... It would make more sense to tear down the old?I think there are several headwinds outside of the elusive dime. Insurance, rates, foreign competitors, unregulated trucks, companies trying to maintain the same margin of profits from years past (some is shareholder driven), higher equipment and operating costs (and the operating costs spread to the carrier through higher wages, insurance, you name it), lack of transparency and the list keeps going.
Most of it is market driven. Little by little as I have said before, carriers can be their own worst enemy by creating their competitors. But make no mistake about it, it is hardly limited to the transportation industry. You see this same thing whether in the restaurant business to literally anything retail. The family is heavily involved in the health industry and agriculture. Makes trucking a cakewalk by comparison. lol
Fortunately, I can sell an extra bale of hay and get my dime.
No. Basically another market driven business. Customers with money will go to the new, and people on a budget will opt for the old because both won't be the same price. With regards or comparison to transportation, it is like comparing expediting to a courier service.
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wayneygogo
Seasoned Expediter
Could we get one of our buddies to run for fmsca secretary. I'll contribute.