Worried

[drivingmecrazy]

We always have wanted to some day own our own truck, but for now we drive for a fleet owner. They are great to us! But as we have seen a major slow down, and our income decrease- well of course they have too! Our best week this month was 2500, our worst was 755. Lots of little runs, reduced rates, lots of sitting, ect...
I guess what I am wondering is how many other team drivers or owners have a plan to make it through this, and do you have back up plans too? We have cut our personal budget to the point that there are no more cuts that can be made- trust me on that! People talk of the thinning of the herd... but how much of that would have to happen to get back to running some miles again, and not having to wait for loads as long- if freight drops even lower? Let me end this by saying no matter how much I worry, I do come back around to " Well at least I have a job!" Maybe thats the mindset I need to keep to fend off the worry? If my job goes away.. there isn't even a unemployment check at the end of the rainbow.. ha ha ha!

 

[ATeam]

I guess what I am wondering is how many other team drivers or owners have a plan to make it through this, and do you have back up plans too?

Diane and I plan to make it through the recession and freight slowdown. While we have marketable skills and other career options, we have no backup plans beyond expediting. That is because plans earlier made and actions earlier taken ensure that we will stay.

We always knew freight could slow; even to the point of slowing to one load a month. We knew that because seasoned expediters told us and we believed them. Accordingly, we set up our business and personal lives to be debt free and build financial reserves. If freight slows to one load a month or even to one load in three months, it will mean we will sit more but it will not force our exit from the business.

We have cut our personal budget to the point that there are no more cuts that can be made- trust me on that! People talk of the thinning of the herd... but how much of that would have to happen to get back to running some miles again, and not having to wait for loads as long- if freight drops even lower?

I don't know but guess the thining process will take several months. If freight volumes decline further, the number of trucks that need to "thin" will increase. It is easy to say the herd must be thinned and the strong survive but I find little joy in that. Being forced out of a business is no pleasant thing. People do not instantly exit at the first sign of trouble. Many linger and continue to lose money for months, because they do not want to admit defeat or maintain a false hope that things will improve soon enough for them to continue.

There is no joy in seeing people leave the business because they are forced to. But like the farmer whose crops rise in value because another's were destroyed or the store owner whose business picks up because another failed, we accept the benefit.

The benefit is not yet evident but when it comes, even a slight increase in freight levels could be very good news for those who are positoned to haul the stuff. Just as it takes time for the herd to thin down, it takes time for it to grow in number. That suggests a truck shortage is in the works and that those who remain in trucks will do quite well, at least until others start entering to get on the gravy train.

Let me end this by saying no matter how much I worry, I do come back around to " Well at least I have a job!" Maybe thats the mindset I need to keep to fend off the worry? If my job goes away.. there isn't even a unemployment check at the end of the rainbow.. ha ha ha!

If your budget cuts are now as low as they can go and if you are not making the money you need to make to stay afloat, it does not matter what you tell yourself. You will go under and that will be that.

If you are making enough money to move ahead, if only modestly so, it may make good sense to stay in your fleet owner's truck, save what you can toward a truck of your own, and wait for better days to come before buying it.

One more thing to consider is the financial health of your fleet owner. With freight slowing, a number of drivers of fleet-owner trucks will seek greener pastures. Your fleet owner may be one of the best but if he or she cannot keep drivers in trucks, the risk exists that the fleet owner will sell his or her trucks and leave you without one to drive.

On the other hand, that very same situation may mean you can get into a truck of your own for nothing more than taking over the payments.

 

[FIS53]

I don't know how many do or would have a back up plan for the slowdown. Most experienced expeditors and couriers weather the slowdowns and continue on. It's their business savy and skills on the job that keep them for the most part profitable and able to continue on.

The thinning of the herds usually starts with the newbies suffering the most and many only lasting a few months as the money is not there and the sitting gets to them. Many that have been in the industry for less than 5 years are usually next on the hit list when the thinning gets going good as many haven't been able to save enough and haven't necessarily established themselves (maybe due to switching carriers).

There are so many variables that not even one plan can be made to survive the current situation. Wha works for one will not necessarily work for another or be to their liking.

I think we are in for a price war if things don't settledown soon and that's going to hit all of us with the only saving grace being fuel has dropped so we can take a price hit for the moment. Think it's bad now? Wait for those lower prices. I've been through two of these price wars and you'd not believe the thinning of the herd then.
Rob

 

[davekc]

I have seen times much worse than where we are currently at. The ones that got a little comfortable during the last several years are the ones that are going to struggle or go under.
Folks with high dollar truck payments and spent most of their earnings are in for a rough ride. Our experience with the last major slow down taught us a few lessons along the way.
In a major slow down, just sitting and waiting on the beep, may not be enough.
We are in a much better position now than we were then.