Anyone know the name of these companies running penske cube vans?

davekc

Senior Moderator
Staff member
Fleet Owner
That's a great idea. But I think too many are desperate for work right now with the way the business is. I just talked to a straight truck diver last week from load 1 who had rescued a load recently from a cube van when the axle broke from being over loaded.

Probably see more of it as there are quite a few desperate drivers out there if it is slow. They aren't likely worried if they get sued as a result of no or underinsured. Most in those situations have nothing of real value to sue for.
 

BigStickJr

Veteran Expediter
Retired Expediter
Isn't it a follow the money thing ?
Follow the path to you find someone with deep pockets ?
Sure, Johnny Vandriver doesn't have much.
The load I dropped this am went through two carriers, with plenty of money. And one logistics firm. That I know of.
I guess the more assets one has the more they should look downstream.
 

davekc

Senior Moderator
Staff member
Fleet Owner
Isn't it a follow the money thing ?
Follow the path to you find someone with deep pockets ?
Sure, Johnny Vandriver doesn't have much.
The load I dropped this am went through two carriers, with plenty of money. And one logistics firm. That I know of.
I guess the more assets one has the more they should look downstream.

Bingo! To ever solve this problem it either has to be enforcement or you have to go after the carriers, shippers and brokers that utilize the rogue operators. Until then, nothing will change. In order to combat it, we have the majority of our fleet in positions where the rogue operators can't compete. That would consist primarily of dedicated loads to a specific shipper or government/credentialed loads. Then you don't have to worry about it.
 

OntarioVanMan

Retired Expediter
Owner/Operator
I just did a load and the original carrier didn't even touch it with one of their own units ... From me to a cross dock into another.... But they get a cut... Dang good gig
 
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OntarioVanMan

Retired Expediter
Owner/Operator
Goes on all the time.
Yeah I know... Expedite is such a small niche.., it's hard to compare it to real trucking or any of the established ways... I think the carriers and brokers screwed the pooch by treating as a mainstream freight ...I understand the difference between directbcustomers and load board stuff... Off a load board someone shouldn't be able to bid on it if they are not the one going to run it...
 
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jelliott

Veteran Expediter
Motor Carrier Executive
US Army
I just did a load and the original carrier didn't even touch it with one of their own units ... From me to a cross dock into another.... But they get a cut... Dang good gig

So they paid for the sales people. Coordinated both carriers and the cross dock. They handled all the customer updates and tracking They paid everyone. They billed it. They waited to get paid. And when all that is done they made??
 

blizzard2014

Veteran Expediter
Driver
If GM or Ford could get on the proper insurance bandwagon somehow.......

They are already on the proper insurance bandwagon. They only allow a certain amount of approved carriers to bid on and move their freight. The approved carriers will bid on loads even when they do not have trucks in the area and then repost those loads to the smaller carriers who do not have access to those loads.

Now in the carriers defense; they don't always do this for the profit. They do this so it looks like they have more capacity than they actually have. It makes them look better, and they end up getting more loads and better carrier ratings by brokering these loads out to other carriers. It artificially raises their load counts. Panther is one of the only companies that does not have to do this. They win awards for covering the most freight on NLM and other load boards.

That is because they have 20 vans in every major city. Other middle sized carriers who do not have a cargo van on every street corner can't compete against this unless they artificially beef up their capacity. NLM and other 3PL's complain about this all of the time, but they really don't care about what monkey business goes on behind the scenes, as long as their loads get covered.

Sometimes carriers do this to scalp money off the top, and other times it is because one of their trucks accepted the load and then broke down, or backed out after the bid has been awarded. The carrier brokers the load out as opposed to turning the load back over to the 3PL and looking bad, or taking a hit to their carrier rarting. Panther doesn't even have to call the driver and ask if they want the load. They just bid on every load that pops up and then go through 20 or more trucks to get it covered once it has been awarded to them.

I would love to be able to do that. Just bid loads without having to call the drivers and haggle with them. Then force one of your drivers to take it; and if they all refuse, you simply throw it out there to your hundreds of partner carriers and let them fight over it like throwing bread crumbs to a bunch of hungry birds. Don't you just love how capitalism works?
 

blizzard2014

Veteran Expediter
Driver
I had a middle sized carrier call me one day and tell me that Ford/GM had a ton of loads coming out of El Paso and that they wanted to know what my rate was so they can bid on loads to give to my truck. I was also on NLM, but not an approved carrier for Ford or GM. Why would a company do this sort of thing? I mean, I charged him a dollar a mile and the truck was getting a good rate. I know why the smaller carriers do not complain about this, because they benefit from these types of arrangements. I also benefitted from this when I had my small carrier operation. The problem is that they want to give these loads away as cheap as possible now. It's like the wild, wild west out there. The only solution for this problem is to let all carriers see and bid on the GM and Ford loads. But then the price will go down even lower because too many people will be bidding. It used to be that only 20 carriers could see the Ford expedite loads. Then the loads were awarded based on carrier rating and how far the driver was from the load. That is how is should be. The most reputable carriers should get these loads and not be able to re-sell them to the smaller less reputable carriers. Ford requires their carriers to have a 2 million dollar general liability policy and 250k in cargo I think. Don't quote me on that though. But when the bigger carriers who have these types of insurance limits broker those loads out to smaller carriers who do not have the same insurance limits, they are breaching their contract with Ford.
 
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blizzard2014

Veteran Expediter
Driver
NLM used to award loads based on your contracted tariff rate. There was no spot bid like there is now. The spot bid is also another change that contributed to the decline in rates paid to the carriers and drivers. Cargo vans used to get a set amount on every load in the old days. At least that is what I've been told by my mentor who has been working with NLM since 2001.
 

Opel2010

Veteran Expediter
Owner/Operator
However, based on what I have seen and individuals I have talked to, there are many foreigners that are running brokerages and paying drivers low wages.

I've been with one of those tiny carriers for quite a while, the owner is American (I'm not gonna say 100% American 'cause I'm sure he's not a Native American), and he was paying way too low his drivers. And late. Very late. I'm talking about six weeks waiting period. I worked also with a carrier owned by a foreigner, yet American citizen, and the pay was a little higher than the previous one. And faster. Cases and cases...
 
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andrew sterling

Rookie Expediter
I used to drive one of the Penskes... I could carry six 45x48 pallets, but rarely did... the trucks 2007 and older were 10,000 gvwr so werent subject to DOT... 2007 and newer are 12,300 gvwr for the same size truck.. I was properly insured just like all the others that ran for my carrier...so to they guy that started this thread, good luck on your witch hunt... The reason for that truck was to to have an edge on sprinters by having the ability to carry taller and wider freight, though the mpg was about half... guys running them at todays rates are not making money if that makes you feel any better... and before the hate gets too out of control, realize trucks of all shapes and sizes run illegally... but we all know that...sprinters and vans dont run overweight? larger trucks dont fudge log books? today's mess has more to do with supply and demand and double brokering than anything else..oh, and "logistics" ... maybe the whole market was inflated by the auto bail outs from a couple years ago... now with less freight and hence drivers sitting losing their minds (and brokers knowing this) rates are terrible.. skimmed down to nothing.. i have a buddy that runs dry vans non expedite and is doing well.. in a slow economy there is far less reason to ship expedite... but hey, maybe we will all be busy running concrete block and rebar down to the border to build the wall soon.. so theres a glimmer of hope
 

jjoerger

Veteran Expediter
Owner/Operator
US Army
They'll probably buy the materials from Mexico and contract the labor to
an American company that uses illegals for the labor.
 
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