Are Any Expedited Carriers Concerned with keeping on Own/Op with current low rates?

[geffrey]

I am truly amazed at the major cost increase of Expediting in the last 6 years.

Classified adds wallpapered everywhere! In need of you and your truck for a very basic pay package that is on the decline!

Their is without question a much greater group of people looking at other options in trucking toward company positions with health insurance and paid vacations.

This Expediting industry needs to have many carriers awakened to what the future holds to them staying in business with Own/Op still contracted to them before it all comes to a quick end!

All Carriers should start getting ready to buy their own trucks and hire employees. That is where it's all heading too!

 

[xiggi]

Re: Are Any Expedited Carriers Concerned with keeping on Own/Op with current low rate

There has been owner ops for a very long time and most likely will be for a long time to come. Why do you think that company drivers is the future? Is there any large expedite carrier that owns their own trucks in that division? It actually even seems that the owner op is growing larger in the main trucking field. Not disagreeing just wonder if you have read anything like articles or studies that show things trending to company drivers or is it just a gut feeling?

Sent from my - Fisher Price ABC - 123

 

[mrgoodtude]

Re: Are Any Expedited Carriers Concerned with keeping on Own/Op with current low rate

Expedite has become the new truckload...

 

[Bruno]

Re: Are Any Expedited Carriers Concerned with keeping on Own/Op with current low rate

Carriers want people to buy new trucks but want to pay everyone less than what we got back in 1995 when I started doing expediting. Why do you see companies going to a flat rate program. Its all about GP (Gross Profit) for companies now.

 

[Pilgrim]

Re: Are Any Expedited Carriers Concerned with keeping on Own/Op with current low rate

When expedite companies start providing company trucks and employee drivers is when we'll start having forced dispatch. If you're an employee you'll go where the dispatcher tells you to go or you no longer have a job. On the other hand, there's no fuel costs, no truck payments, no tolls, no maintenance, etc, you just get paid a certain amount per mile, maybe a few company benefits and ObamaCare if it's still around. You'll likely see the expedite companies that try this approach become unionized. If this suits you, go to work for a delivery or courier service and sleep at home every night.

 

[zorry]

Re: Are Any Expedited Carriers Concerned with keeping on Own/Op with current low rate

Carriers want people to buy new trucks but want to pay everyone less than what we got back in 1995 when I started doing expediting. Why do you see companies going to a flat rate program. Its all about GP (Gross Profit) for companies now.

Dave, you've come on here a few times talking about declining rates and increased costs.

Nobody will argue those two points.

Yet you continue to grow and prosper.

What's your secret ?

 

[mjmsprt40]

Re: Are Any Expedited Carriers Concerned with keeping on Own/Op with current low rate

The OP is dreaming--- or nightmareing, not sure which.

Part of the reason we have I.C.s in this industry is the ability by the carriers to shift as much expense as possible. It costs money-- a lot of it-- to maintain a fleet of vehicles, then to pay all of the costs of employees to drive the vehicles and so on and so on. The only breaks I see for the companies going the non-IC way would be economy of scale-- and that only works for the very large companies, where they can get breaks because they're insuring, maintaining and so on 3,500 vehicles. For the mom-and-pop operations which have a handful of vehicles--- nope, no savings.

By making us all I.C.s, driving our own vehicles, the companies get to shift all of the cost of vehicle ownership/maintenance/most or all of insurance and so on onto us. It's not too likely that this will change in this industry any time soon.

 

[OntarioVanMan]

Re: Are Any Expedited Carriers Concerned with keeping on Own/Op with current low rate

every time there was a new policy and it cost me a few more bucks for THEIR policy...they used the same old line...."It is the cost of doing business"...One day I retorted and EXACTLY what is YOUR cost of doing business since I am paying all these surcharges? Hmmmmm?

 

[bubblehead]

Re: Are Any Expedited Carriers Concerned with keeping on Own/Op with current low rate

Dave, you've come on here a few times talking about declining rates and increased costs.

Nobody will argue those two points.

Yet you continue to grow and prosper.

What's your secret ?

SHHH! It is really a front company... he actually heads a "Cartel" south of the border... and I am not talking about the one on I95....

 

[JohnMueller]

Re: Are Any Expedited Carriers Concerned with keeping on Own/Op with current low rate

I'm not in operations or sales, but rather the non-revenue generating area of safety and compliance. I do have my fingers in recruiting which is a "revenue generating" department only in the sense that without you owner-operators the company would not survive. All the expedite carriers depend on you - the owner operators - for our existance. Thank you for all that you do.

Richard Deforest from ATBS says it best when speaking at the EO University and Expo workshops when he says "trucking is a true working example of supply and demand". This is because when freight is down and there is an abundance of trucks the rates paid by shippers to expedite (or other) carriers decrease. The rates the expedite carriers can pay to their owner operators also decreases during these periods. Likewise, when the demand for freight is up and the supply of trucks decreases, the rates paid by the shippers increases. The rates paid to the owner-operators also increases at these times.

Surely if you are paid on a percentage basis per the contract with your carrier, then your rates raise and lower automatically with these fluctuations. At our company, even though our contracts are written to pay on a per "loaded mile" basis, we pay way above and beyond our "contracted" rate to our owner-operators when trucks are in great demand, and still manage to pay them at, or just barely below their "contracted" rates, when freight is scarce.

Surely the variable costs of the owner operatorfluctuate throughout the year, and even fixed costs (like insurance) can change year by year for the owner operator, but the same is true for the carrier. The difference is the carrier is the primary party that deals directly with party that is setting or agreeing to pay, or not pay, requested rates - the shipper. So most times it is not a simple matter of the carrier trying to take advantage of their owner-operators. In fact most of the carriers really do try to look out for the good of their owner-operators, because again, without you we would not be in business.

Remember - All the expedite carriers depend on you - the owner operators - for our existance. Thank you for all that you do.

 

[aquitted]

Re: Are Any Expedited Carriers Concerned with keeping on Own/Op with current low rate

I'm not in operations or sales, but rather the non-revenue generating area of safety and compliance. I do have my fingers in recruiting which is a "revenue generating" department only in the sense that without you owner-operators the company would not survive. All the expedite carriers depend on you - the owner operators - for our existance. Thank you for all that you do.

Richard Deforest from ATBS says it best when speaking at the EO University and Expo workshops when he says "trucking is a true working example of supply and demand". This is because when freight is down and there is an abundance of trucks the rates paid by shippers to expedite (or other) carriers decrease. The rates the expedite carriers can pay to their owner operators also decreases during these periods. Likewise, when the demand for freight is up and the supply of trucks decreases, the rates paid by the shippers increases. The rates paid to the owner-operators also increases at these times.

Surely if you are paid on a percentage basis per the contract with your carrier, then your rates raise and lower automatically with these fluctuations. At our company, even though our contracts are written to pay on a per "loaded mile" basis, we pay way above and beyond our "contracted" rate to our owner-operators when trucks are in great demand, and still manage to pay them at, or just barely below their "contracted" rates, when freight is scarce.

Surely the variable costs of the owner operatorfluctuate throughout the year, and even fixed costs (like insurance) can change year by year for the owner operator, but the same is true for the carrier. The difference is the carrier is the primary party that deals directly with party that is setting or agreeing to pay, or not pay, requested rates - the shipper. So most times it is not a simple matter of the carrier trying to take advantage of their owner-operators. In fact most of the carriers really do try to look out for the good of their owner-operators, because again, without you we would not be in business.

Remember - All the expedite carriers depend on you - the owner operators - for our existance. Thank you for all that you do.

Oh that just makes me want to hop back in my truck and haul more of your freight for chump change

 

[Bruno]

Re: Are Any Expedited Carriers Concerned with keeping on Own/Op with current low rate

Dave, you've come on here a few times talking about declining rates and increased costs.

Nobody will argue those two points.

Yet you continue to grow and prosper.

What's your secret ?

I will just say this. Old carrier we had four of our own trucks and managed three trucks for other owners. Current carrier we have had as high fifteen trucks of our own and manage ten trucks for other owners. We work very well with our current carrier and can get our own freight with them too.

 

[davekc]

Re: Are Any Expedited Carriers Concerned with keeping on Own/Op with current low rate

I'm not in operations or sales, but rather the non-revenue generating area of safety and compliance. I do have my fingers in recruiting which is a "revenue generating" department only in the sense that without you owner-operators the company would not survive. All the expedite carriers depend on you - the owner operators - for our existance. Thank you for all that you do.

Richard Deforest from ATBS says it best when speaking at the EO University and Expo workshops when he says "trucking is a true working example of supply and demand". This is because when freight is down and there is an abundance of trucks the rates paid by shippers to expedite (or other) carriers decrease. The rates the expedite carriers can pay to their owner operators also decreases during these periods. Likewise, when the demand for freight is up and the supply of trucks decreases, the rates paid by the shippers increases. The rates paid to the owner-operators also increases at these times.

Surely if you are paid on a percentage basis per the contract with your carrier, then your rates raise and lower automatically with these fluctuations. At our company, even though our contracts are written to pay on a per "loaded mile" basis, we pay way above and beyond our "contracted" rate to our owner-operators when trucks are in great demand, and still manage to pay them at, or just barely below their "contracted" rates, when freight is scarce.

Surely the variable costs of the owner operatorfluctuate throughout the year, and even fixed costs (like insurance) can change year by year for the owner operator, but the same is true for the carrier. The difference is the carrier is the primary party that deals directly with party that is setting or agreeing to pay, or not pay, requested rates - the shipper. So most times it is not a simple matter of the carrier trying to take advantage of their owner-operators. In fact most of the carriers really do try to look out for the good of their owner-operators, because again, without you we would not be in business.

Remember - All the expedite carriers depend on you - the owner operators - for our existance. Thank you for all that you do.

I think that is a good case for some/many carriers because it is a supply/demand business. At the same time, I am mindful that some nameless carriers are making millions. In many cases, on the back of their operators. I'm all for capitalism and it should flourish here. But, "IF you put that lipstick on a pig, it is still a pig". Some carriers are above board and many clearly aren't.
My quote of "bottom feeders" didn't happen by accident. Just have to look around and see how some operate. And quite frankly, some should be downright embarrassed.

 

[Dynamite 1]

Re: Are Any Expedited Carriers Concerned with keeping on Own/Op with current low rate

I think that is a good case for some/many carriers because it is a supply/demand business. At the same time, I am mindful that some nameless carriers are making millions. In many cases, on the back of their operators. I'm all for capitalism and it should flourish here. But, "IF you put that lipstick on a pig, it is still a pig". Some carriers are above board and many clearly aren't.
My quote of "bottom feeders" didn't happen by accident. Just have to look around and see how some operate. And quite frankly, some should be downright embarrassed.

We know of one carrier where it costs an O/O .11 per mile just to haul freight for them. You figure the cost over a year. Some should be very ashamed but they will get you miles to make up for it !!

 

[pearlpro]

Re: Are Any Expedited Carriers Concerned with keeping on Own/Op with current low rate

Ive worked for a company that owned its own trucks, nice trucks but the sleepers were small, not a good living, all it takes is one small thing, a repair, a weather issue, a delay by shipper etc and your PAY goes to Terrible, It was a good learning experience, the guy who owns the company was a nice fella, but my money was crap.

You always here the old saying work more make more but going out three weeks and going home with chump change wasnt cutting it....he had several new trucks, a decent operation, but I wasnt making the money so lessons learned.

I am still holding onto the dream of Buying an new expediter, big sleeper and all the tools but it seems the economy is slipping and my dream is with it...

Hope the rest of you make it thru the rough times, Im making enough to survive but Im concerned with dropping 150 K or more on a truck I plan to retire with...in a sluggish economy and Politicians who want to give our Jobs and work to Vietnam....China and all the rest...

 

[JohnMueller]

Re: Are Any Expedited Carriers Concerned with keeping on Own/Op with current low rate

What a mindset.

 

[wimpy007]

Re: Are Any Expedited Carriers Concerned with keeping on Own/Op with current low rate

Please keep in mine that the IRS is hot on killing the IC payment system and like to have everyone on employee status to collect taxes. This system raises its ugly head every so year or so.

 

[VTurri]

Re: Are Any Expedited Carriers Concerned with keeping on Own/Op with current low rate

I am truly amazed at the major cost increase of Expediting in the last 6 years.

Classified adds wallpapered everywhere! In need of you and your truck for a very basic pay package that is on the decline!

Their is without question a much greater group of people looking at other options in trucking toward company positions with health insurance and paid vacations.

This Expediting industry needs to have many carriers awakened to what the future holds to them staying in business with Own/Op still contracted to them before it all comes to a quick end!

All Carriers should start getting ready to buy their own trucks and hire employees. That is where it's all heading too!

Don't forget CSA 2010 and the DOT. Much harder to control safety with contactors than it is with employee drivers.

 

[aquitted]

Re: Are Any Expedited Carriers Concerned with keeping on Own/Op with current low rate

What a mindset.

It's called reality not a mindset, wake up and smell the coffee brah!

 

[davekc]

Re: Are Any Expedited Carriers Concerned with keeping on Own/Op with current low rate

I believe in many cases, that "mindset" gets created when you have an industry that is growing, increasing profits for many, and yet try to convince contractors that rates are great when in fact they are what they were twenty years ago. And in some cases, they are making every effort to cut rates or shift costs on to the operator. Heck, you had one company president on here some time back that considered his contractors "nothing more than a commodity". Of course he hasn't been back, but it tells you the mentality of some and what creates that "mindset".
It is still a great industry when in the right place, but those rose colored glasses can get pretty foggy when looking in the wrong direction.