Going Out Of Business

Brandy

Expert Expediter
Is it me or are alot of expedited O/O going out of business, or at least looking for new drivers for their trucks or vans? It seems to me that the economy is hurting us like never before, first it was fuel prices, then 9/11 and now... bad business skills?
 

Larry

Veteran Expediter
Charter Member
As an observer of this business, I can say that what you have observed (driver & o/o getting out, fewer loads at this time, fluxuating fuel prices) is the way this businss has become. Over the past couple of years there have been a lot of drivers that have come and gone. Many of them have lost their trucks and their good credit. The loads have generally been feast or famine (however, with more famine over the past couple of years). Well established (years in the business) solo drivers and teams seem to do best. And fuel prices of $1.49 plus per gallon seem to be a more common occurance. As long as there are people out there with the dream of being an independent driver, and the money or credit to buy a truck; there will be a pool of risk takers. People fail to thuroughly investigate the expediting business, believe everything the recruiters tell them, fail to ask the tough questions and only hear what they want to hear.
This is a tough business, and is very much a crap shoot. There will be winners, but it is usually the house (shippers, brokers ect.).

Drive Safe
 

ATeam

Senior Member
Retired Expediter
Larry,

Good post. What are the tough questions people should ask before entering the business?
 

Larry

Veteran Expediter
Charter Member
What are the tough questions?

Well, to start with, a person needs to ask themselves if they are financially able to ride out tough times. How long can you survive on $100 or $200 per week? When your truck needs repairs (and it will), will you have the financial backing to fix it or do you have the mechanical aptitude and tools to do the repairs yourself? (My experience with an FL70 is that it usually doesn't get out of the shop for less than $1000.) Can you sit in a parking lot for 3 or 4 or more days, waiting for dispatch to call? If you are a team, can you sit there with your team mate or spouse without killing each other? Can you turn a load down because you know that there is little chance of getting a load out of the destination area? What kind of support will you get from home? Are you going to hear a lot of "I told you so"? If you have kids at home are they going to understand that you will be gone for extended periods of time and will miss significant events in their lives. Do you have the patience to sit for hours to be loaded or unloaded by people who probably have no empathy for the fact that you are paid by the mile and they are paid by the hour? After being awake for 12 to 14 hours, yet having put yourself in the log book as in the sleeper or off duty, will you be able to make that hot run that has to go 600 miles in 10 hours? The dispatcher has a lot more concern for getting that load delivered on time, than he does about your physical well being. It is rare that there will be anyone out there that will genuinely care about your mental or physical well being - shippers, dispatchers and receivers are concerned about the load. They do not wish you ill, but they truely do not care. You are your own responsibility, accountable only to yourself.

Those are some of the questions I believe you should consider before you even talk to a dispatch.

My observations tell me that a person should not get in the expediting business without first driving for someone else. Sure, you will not make as much money, but then you are not taking any large financial risks. Drive for a while, learn the ropes, talk to other expeditors about their equipment and the companies they drive for. Learn where to get the truck repaired, where the safe and not so safe places are to park, eat etc. Miss a few holidays and special events with the family. Spend three days sitting in a truck stop 1,000 miles from home; missing a child's birthday. Drive the long hours without enough sleep and then sit for 3 hours to be unloaded at some auto plant by some guy making $20.00+ per hour that takes 15 minutes to get ready to go on a half hour break and then takes another 15 minutes trying to retrain himself on what his job is.

When I drive on the open road, I truely enjoy it. But expediting isn't just driving the open road. It is about a lot of things - including how to run a small business. The O/O is a small business person and needs to understand the fundementals of running a small business. You can pick up a lot of that while driving for some else.

Drive Safe
 

bkkeystone

Expert Expediter
larry,

If you were a preacher, I'd go to your church every Sunday!!!!

You have hit the nail right on the head ! My wife and I sold our "D" unit and quit the business due to an over zealous dispatcher that worked for our company and thought the way to "suck up" to the owners was to get freight at rock bottom prices and then promise the moon on delivery times!!! And, as you know, no one was ready to unload that "critical" load once you busted ur butt to get there!!

Seems as though the "shippers" and "receivers" operated on a different time line than the brokers, NLM or the company dispatchers.
If the industry would just get more realistic than idealistic and consider such things as DOT laws, pee calls, sleep, showers, weather,rush hour traffic, construction,accident delays, Chicago butthole drivers, (what have I left Out???) it might be different to truck-----like the old days maybe.

My favorite trucking saying is " The failure on your part to properly plan, does not necessarily constitute an emergency for me".
Seems as though Managers don't manage any more----they react!!!!
 

boxtruck6

Expert Expediter
finally somebody put it like it really is out their, soo read up newbes for this lesson one RESEARCH,, boxtruck!!!!!!!!
 

Brandy

Expert Expediter
Larry, your the man, thanks for your in depth comments on the expediting business, hopefully it will help other drivers in their quest for knowledge about the business.

Sean
 

ATeam

Senior Member
Retired Expediter
Thank you, Larry. Here's how the newbie ATeam stacks up as we prepare to enter the business this summer:

>What are the tough questions?
>
>Well, to start with, a person needs to ask themselves if
>they are financially able to ride out tough times. How long
>can you survive on $100 or $200 per week?

Answer: Several years.

>When your truck needs repairs (and it will), will you have the >financial backing to fix it

Answer: Yes

or do you have the mechanical aptitude and
>tools to do the repairs yourself? (My experience with an
>FL70 is that it usually doesn't get out of the shop for less
>than $1000.)

Answer: Yes I have the mechanical aptitude and tools for all but the major repairs that require special equipment or diagnostic devices that would not be cost-effective to rent or purchase.

Also note that we'll begin driving for a fleet owner on the traditional 60/40 split. He'll pay for maintenance and repairs, not us. We're beginning with a fleet owner to make sure the life is for us before we purchase and maintain a truck of our own.

Can you sit in a parking lot for 3 or 4 or more
>days, waiting for dispatch to call?

Answer: Yes. We enjoy each other's company and know many ways to make healthy and productive use of our waiting time. We also note the advice given in the EO forums and by fleet owners we've talked to. The advice is to avoid waiting that long for a load. Taking that advice to heart, we'll likely deadhead to another location if we don't have a new load within a day or two of our previous load.

If you are a team, can
>you sit there with your team mate or spouse without killing
>each other?

Answer: Yes. We enjoy each other's company. Also, we've seen no requirement that a team must spend every moment of load-waiting time together. We'll both have cell phones. One can go to a movie while the other attends a free community education class nearby. One can do the laundry while the other showers. One can drop the other off at a library, museum, park, YMCA, or ball game, and then drive the truck to a shopping center, laundry mat, truck wash, or other place of interest. When duty calls, a cell phone call (and maybe a taxi) can quickly bring the two of us back together and we'll be on our way.

Can you turn a load down because you know that
>there is little chance of getting a load out of the
>destination area?

Answer: Yes, but we're also conscious of our availability, acceptance, and on-time numbers. We'll think twice before turning down a load. Several drivers, fleet owners, and recruiters have cautioned us about over-analyzing a load or bringing too much of a personal agenda into the business. We're told that the drivers who are available most of the time and accept most of their loads do better than those who get overly particular about their schedule and location. With no need to get home and little concern about what part of the country we happen to be in on a given day, we don't have to be particular. For the most part, we'll take any load anywhere, anytime, as long as it makes financial sense to do so.

What kind of support will you get from
>home?

Answer: We're a happily married couple with no kids. We have no desire or need to return home, except to visit family and friends on special occasions.

Are you going to hear a lot of "I told you so"?
If >you have kids at home are they going to understand that you
>will be gone for extended periods of time and will miss
>significant events in their lives.

Answer: Question does not apply to us. We're a driving team with no children.

Do you have the patience
>to sit for hours to be loaded or unloaded by people who
>probably have no empathy for the fact that you are paid by
>the mile and they are paid by the hour?

Answer: Yes. We're more inclined to evaluate our business results by the month than by the hour.

After being awake
>for 12 to 14 hours, yet having put yourself in the log book
>as in the sleeper or off duty, will you be able to make that
>hot run that has to go 600 miles in 10 hours?

Answer: There is NO WAY we'll let that happen. Safety is a high priority for us, if not the highest priority in this whole endeavor. No load of freight and no amount of money is worth the sacrifice of our lives or health. The one thing we'll always be sure of, that no matter what time of the day or night a call comes in, one of us will have had enough sleep to respond and drive safely. Solo drivers may have other sleep challenges. As a team, we can work it out so naps can be taken and driving can be done in safe shifts. If at least one of us has not had enough sleep to drive safely, we will not accept the load. We're fully prepared for the irregular sleep that is common in the industry. We will NEVER be prepared to drive when it is not safe to do so.

>dispatcher has a lot more concern for getting that load
>delivered on time, than he does about your physical well
>being. It is rare that there will be anyone out there that
>will genuinely care about your mental or physical well being
>- shippers, dispatchers and receivers are concerned about
>the load. They do not wish you ill, but they truely do not
>care. You are your own responsibility, accountable only to
>yourself.

Answer: We understand that. Part of the joy of self employment is that you're not expecting or depending on others to care about you. You're responsible for your own feelings and results.

>Those are some of the questions I believe you should
>consider before you even talk to a dispatch.
>
>My observations tell me that a person should not get in the
>expediting business without first driving for someone else.
>Sure, you will not make as much money, but then you are not
>taking any large financial risks. Drive for a while, learn
>the ropes, talk to other expeditors about their equipment
>and the companies they drive for. Learn where to get the
>truck repaired, where the safe and not so safe places are to
>park, eat etc.

Answer: That's the exact plan we're following.

Miss a few holidays and special events with
>the family.

Answer: Easy for us to do. The one day of the year we care about is December 24, when the entire family gets together. We won't miss that event. We'll go out of service and deadhead home if we must.

Spend three days sitting in a truck stop 1,000
>miles from home;

Answer: By regarding our truck as our home, it won't matter where we are. We'll be home 100% of the time.

missing a child's birthday.

Answer: For our important family events like weddings and Christmas, we'll go out of service and deadhead there if that is the only way to make it. Or, we might park the truck in a safe place and rent a car or fly to get there. One way or another, we'll get to the important family events.

Drive the long
>hours without enough sleep

Answer: Again, we'll turn down a load before we drive tired. Safety is one of our highest priorities.

and then sit for 3 hours to be
>unloaded at some auto plant by some guy making $20.00+ per
>hour that takes 15 minutes to get ready to go on a half hour
>break and then takes another 15 minutes trying to retrain
>himself on what his job is.

Answer: Waiting 3 hours seems like a good time to read a book or to go online to see what tourist attractions might be nearby. It's also a time when one of us can sleep and the other does the pretrip inpsection in preparation for our next call.

>When I drive on the open road, I truely enjoy it. But
>expediting isn't just driving the open road. It is about a
>lot of things - including how to run a small business. The
>O/O is a small business person and needs to understand the
>fundementals of running a small business. You can pick up a
>lot of that while driving for some else.

Answer: We have previous small businesses experience. That piece is well in hand.

>
>Drive Safe

Answer: Count on it.
 

Larry

Veteran Expediter
Charter Member
ATeam: I do wish you the best of luck with your business. It will be interesting to have this discussion again in a year or two. Hopefully all will work out for you and you can share some of your experience with us.

Drive Save
 

gambler

Expert Expediter
LARRY you are wise beyond your yrs.(regardless of how many that really is)!! you are well spoken and very insightfull. even your followup to ateam was EXACTLY my thoughts as well..i am a NEWBIE (8yrs) heheh but i couldnt have stated what you did any better!! thank god there are others out there with some real brains. i wonder sometimes after being out for a while. as for the ATEAM i sure hope they are right however i must concur with you. Also i am unsure why a team who could go for YEARS on $100. 0r $200 wk would even be on the road?? i say sit back put drivers in the truck and watch the grass grow!! Good luck ATEAM.
 

ATeam

Senior Member
Retired Expediter
Replies like Gambler's always puzzle me. Does your job suck so much that you'd advise other people not to do it? Are you so unhappy in your work that you can't see how anyone else could possibly enjoy doing the same thing? Is success in this industry so difficult that only a handful of exceptionally gifted and/or lucky people can achieve it?

I don't think so. I believe that with good research prior to getting started, a good set of business skills, the ability to manage your money, and a good work ethic, any able-bodied person (and even some with disabilities) can enter the transportation industry, make a good living as a truck driver, and have fun doing it.
 

Lawrence

Founder
Staff member
A-Team,

Correct me if I'm wrong - it was my understanding that Gambler was supportive of the positive information given by Larry.

Lawrence,
Expediters Online.com


-----------------------------------------
Everybody is someone else's weirdo.
http://www.expeditersonline.com/weekly/Bean.gif
-----------------------------------------
 

ATeam

Senior Member
Retired Expediter
Perhaps I misunderstood. I saw Gambler as supportive of Larry's comments but questioning our entering the trade. My response may have been colored by the far-too-many other messages from other people in other forums that wrongfully conclude that just because we are happy and successful in other endeavors, we will be unhappy and unsuccessful in trucking. Rethinking my response, I guess I was talking more to them than to Gambler.
 

Dkalasz

Veteran Expediter
Charter Member
>Perhaps I misunderstood. I saw Gambler as supportive of
>Larry's comments but questioning our entering the trade. My
>response may have been colored by the far-too-many other
>messages from other people in other forums that wrongfully
>conclude that just because we are happy and successful in
>other endeavors, we will be unhappy and unsuccessful in
>trucking. Rethinking my response, I guess I was talking more
>to them than to Gambler.

I would have to say that the negative replies you get have more to do with the poor shape of the industry over the last few years..to be honest i wouldnt recommend anyone get behind the wheel..but my reasons have nothing to do with job satisfaction. I believe this industry needs a serious driver shortage in order to get rates back to respectable..
 

winemaker3279

Expert Expediter
When you guys refer to rates I'm a little confused. I understand that alot of companies offer drivers a bid process, but what about the companies like Panther II that pay by the mile? .80 per mile for an o/o is crap...if your driving a 6-wheeler or a rig. To me, in my inexperienced way, .80 is not bad for a van. Please, nobody slam me for this as I am not in your industry. I have been thinking about getting into it though in my area. Drivers I talk to on the road out here seem to be happy with their mileage, pay, and hometime. Is there a difference on freight depending on what part of the country you are located in? From what I have learned so far, it seems most freight is around Chicago and the Detroit areas. It also seems to me that a person's success in this industry depends on the number of mileage they need to get each week. Some might be able to run 1000 miles and be successful where others who need 2000 miles per week and can't get it, fail.

In a state of confusion...
 

gambler

Expert Expediter
>A-Team,
>
>Correct me if I'm wrong - it was my understanding that
>Gambler was supportive of the positive information given by
>Larry.
>
>Lawrence,
>Expediters Online.com
>
>
>-----------------------------------------
>Everybody is someone else's weirdo.
>http://www.expeditersonline.com/weekly/Bean.gif
>-----------------------------------------
lawrence ..thank you for READING a post b4 responding!! seems ATEAM did not.as for my job sucking???i dont know where they got that out of my mssg. i already made it clear i have more than a handfull of trucks in expediting and consider myself fairly successfull...and i dont think i was crying about $$ as for my comments to ateam i tried to be supportive but caution them as larry did..and i ??'d why someone so well off would even want to be on the road if they could afford to have someone for them which isnt downing anyone its just saying ENJOY LIFE if you can afford to sit back.i'm not thrilled with ateams assumtion that i am a crying truckdriver unhappy with the co's i lease to and making no $$ but hopefully he will re-read . as for the previous post..by??? if it helps i can assure you even new hires at panther with a straight trk. make at least 1.20 mile....hope that helps?? peace
 

ATeam

Senior Member
Retired Expediter
Point taken. Perhaps we have sort of a psychological advantage entering the industry now. With no fond memories of the good old days, things won't seem so bad. For us today, the industry is what the industry is. Perhaps one of the reasons we'll enjoy ourselves in the work is because we won't know any better.

As I study the expediting industry as a newbie, I see a mature market sector that was pioneered by Roberts Express. Numerous competitors entered this lucrative sector, driving down prices and increasing competition. Major companies entered the fray. Fuel prices threw a bunch of folks for a loop. The easy money is gone. It's now survival of the fittest. We're knowingly entering the industry on those terms. Except for what's specified in the contracts we sign, we're entitled to nothing. There are no guarantees.
 

gambler

Expert Expediter
>Point taken. Perhaps we have sort of a psychological
>advantage entering the industry now. With no fond memories
>of the good old days, things won't seem so bad. For us
>today, the industry is what the industry is. Perhaps one of
>the reasons we'll enjoy ourselves in the work is because we
>won't know any better.
>
>As I study the expediting industry as a newbie, I see a
>mature market sector that was pioneered by Roberts Express.
>Numerous competitors entered this lucrative sector, driving
>down prices and increasing competition. Major companies
>entered the fray. Fuel prices threw a bunch of folks for a
>loop. The easy money is gone. It's now survival of the
>fittest. We're knowingly entering the industry on those
>terms. Except for what's specified in the contracts we sign,
>we're entitled to nothing. There are no guarantees.
saw you responded as i was as well...1 thing about your last post is that while competitors did drive prices down..actually when fedex bought out roberts THAT had a MAJOR impact on the state of things now in expediting..1)fedex cares about no one and nothing except FEDEX they have a large fleet of CO.OWNED trucks that newbies are unaware of. 2) they are the KING of discounting freight and killing o/o's with their politician like discression...think about this as the BACKBONE of the co's we represent how come we have NO INPUT into whom gets discounts and how much??? heres another 3 words you will learn to love..HOUSE HOLD GOODS!! where a 600 mile trip is somehow figured out to only supposedly be 500 miles???? also FEDEX plays fast and loose with trading freight within the fedex "name" and expediters end up hauling non critical freight for non critical pay. again i welcome any comments from anyone thats been in the business...ps. i do still have trucks with fedex as well.
 

tequila336

Expert Expediter
don't get me wrong, but have either of you been in the trucking industry at all? i have been otr company driver for over 13 years. i started out with my best freind as a team. we had hung out together since we were 10. at the end of the six months we were at each others throats.....try this ( don't laugh ) get you a cooler full of sandwiches and drinks, a small tv, some reading material, pillows and blankets, now both of you go to the bathroom and lock the door, don't come out for a week. now remember you haven't dealt with a dispatcher, traffic, dot, construction or shipping/recievers.

like i said don't get me wrong i wouldn't do anything else but it ain't no bed of roses. a lot of couples make it teaming, but alot don't. to me it sounds like you have been talking to a really good recruiter or o/o that knows how to wear really high waiters.
 
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