ENOUGH IS ENOUGH http://gracevine.christiantoday.com...a-remember-that-famous-speech-to-his-son-2381
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Is it slow all over ???
- Thread starter littlejoe
- Start date
fenderbender
Rookie Expediter
That's the way I feel about it too. 4-5 years ago I would have to take myself out of service to get some sleep. Not so much these days. There are just so many sprinters out here now. Not to mention the "rental truck gang".
I'm still making a living, but sure not saving as much as I used to.
Well that's depressing
Murraycroexp
Veteran Expediter
Therein lies the problem. If you're not running primarily customer freight, and busy, there's a lot more trucks than required to run the overflow freight.
17,288 trucks available on Sylectus. That's way up over last year and prior years. ANYONE can get on Sylectus, virtually.
17,288 trucks available on Sylectus. That's way up over last year and prior years. ANYONE can get on Sylectus, virtually.
fenderbender
Rookie Expediter
Nail on head.
paullud
Veteran Expediter
There aren't a lot of new businesses opening up that require the use of expedite companies so the existing expedite companies have to fight over the loads, guess how they win the bid. There is a surplus of companies and vans and each will push down rates at their level. Now throw in the fact that the vehicle count is increasing and it means people sit longer which means that they will run cheaper, just to get some sort of check. That will help fix the profits for the expedite companies so they will stay in business even if the drivers don't.
I think everybody and his family got into expediting, but remember, you make your money when a factory screws up and forgot to order parts or someone delivered bad parts. The more efficient they get, the less you make, well that's my opinion....
Well the other big problem is the complete amount of insurance fraud. We have been researching this hard over the last month or two. The amount of carriers operating vans with improper or purposely fraudulent insurance coverage has skyrocketed. This only helps to continue the push to lower and lower rates. Easy to lower rates when you do not have a legitimate cost structure. This fraudulent operating structure is even easier for someone to use to start up yet another van carrier. Thus the explosion continues and the continued over supply vs demand, instead of the market finding it's own natural correction and balance. Although many may not realize this it hurts the carriers running legitimate as much as it does the legitimate owner operator. Sadly many (and I am sure some on this board) run knowing they are not fully compliant and feel it is too their advantage, while all it does is hurt those doing it right. I personally spoke to one carrier owner about what he was doing and the fact he was running improperly. His response was I can't afford to run your cost structure set up. He didn't appreciate my response...if you can't and wont run legal and compliant maybe you need to exit the business.
Murraycroexp
Veteran Expediter
I think the bigger correction could happen soon. Brokers like L1, Bolt & others are "putting their foot down" and flipping their requirements to match what you're describing, cutting off carriers. If enough of the brokered freight is controlled by brokers doing this, the carriers with the described issues won't have a choice if they want more freight sources.
Yep, it certainly made us add the policy. Not cheap at all.
But brokers still don't mind paying for the cheapest truck out there most of the time. But as more brokers cut off carriers the rates will hopefully stabilize a bit.
Actually Murray we were already adequately covered by individual policies that were prescribed thru CIS...ONLY thing is L1 and Bolt and others wanted a general FLEET policy in place so it would be easier to track the offenders.....
Now if I should amend my policy in any way, both CIS AND Crossroads will get automatically notified of that change and I am GONE!!!
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We are going to continue to push and put pressure wherever we can. More will be coming!!!! The other push is to continue to educate shippers/brokers/3pls and other carriers of the fraud and risk that is being put upon them by deceptive and illegal business practices. At the same time drivers and owner operators truly need to help do what they can from the other side and help! This thing will only get better with everyone working to clean it up.
John, is there any tell tale signs that a carriers insurance isn't adequate? What kind of questions should an o/o ask?
IMO...now should also be the shift to inform and educate brokers/shippers/3pls of their liability risks for putting their freight on a non compliant truck/under insured....an automated checking system where 1 click and they can see a complaint truck or NOT....and turn it away.
That is a complicated question. CIS can probably answer it more clearly than me. But the easiest part is when you are getting your insurance for thousands less then others per unit...you most likely do not have proper coverage. You used to be able to tell of a carriers insurance certificate. Now so many have figured out how to "game" that as well. It is truly a cancer in our industry and it is spreading.
the on line insurance verification system (OIVS or something like that), as well as the SAFER system should already should be able to check for proper insurance coverage.
but another problem is due to the Sylectus fallacies. Sylectus signs up lots of foreign companies with only one truck, instead of the 10 that they require American companies to have. We all have seen them on the road, there are thousands and they have thousands of trucks, driving down rates, and they may or may not have the proper insurance. If they win bids on Sylectus, does the broker awarding the bid check for proper insurance? probably not, as long as the bid is low.
Glad to see Everyone Enjoying this nice Sunday .....
Even though I agree with what several are Discussing about Rates and Insurance ... I am going to just sit back and watch the Filtering Process take effect on this business...
I have positioned myself in what I have determined a strong Carrier about 2 1/2 months ago...probrably the best decision I've made in this Business in 12 years out here..
( and NO they are NOT hiring )
I M O many on here need to open their eyes and minds as to the changes now and possible future is this business if they want to Stay in this business ...again just my opinion ....and enjoy the day...
Even though I agree with what several are Discussing about Rates and Insurance ... I am going to just sit back and watch the Filtering Process take effect on this business...
I have positioned myself in what I have determined a strong Carrier about 2 1/2 months ago...probrably the best decision I've made in this Business in 12 years out here..
( and NO they are NOT hiring )
I M O many on here need to open their eyes and minds as to the changes now and possible future is this business if they want to Stay in this business ...again just my opinion ....and enjoy the day...
Well insurance monitoring does not truly work all the time, especially in the world of the multi model. The carrier may show insured properly, but they are insuring one unit. The vans carry their own insurance and us as a broker have no way of truly monitoring them directly. As well some carriers will cheat on scheduled auto policies and insure a certain number but not all of their units. It is a bang head situation for those who try and do it correctly and are compliant.
Sylectus is a frustrating thing. While it is not their responsibility to monitor carrier compliance, the basic dropping or disregarding of the original rules/criteria have only exasperated the problems. You would be amazed at how many carriers on there list 20 to 100 units and have insurance for for 1 and show 1 on safer.
In my opinion the owner operators who run for these companies are only pushing the situation in a negative direction for the industry, rates, and ultimately themselves. Again and again we have seen so many of these carriers go out of business and leave the owner operators hanging. Or they switch names repeatedly and attempt to hide behind new corporations.