Expediters Going Hungry, For Real

ATeam

Senior Member
Retired Expediter
In the last few days, Diane and I have visited with more than the usual number of expediters on the road. The visits happened mostly by chance as we stopped at truck stops in the Southwest and stumbled upon expediters from a variety of carriers who were waiting for freight.

Some of the visits were a lot of fun. Others were not and they have been lingering in my mind and gut for days.

One team reported that their fleet owner was holding back money, for reasons unknown. They worry the fleet owner may be having money problems and they were unsure of their future.

Another team told us of a recent layover where they ran out of money, waited for a few days for freight that did not come, and literally went hungry because their fleet owner would not advance funds they had already earned.

A member of a different team, a not-same-household team, told us she was limiting herself to one meal a day.

When money gets tight on the road, life gets hard. You might want to deadhead to a better freight area, but cannot because the fuel costs too much. You might want to eat, but cannot because you have no way to pay for food. You might want to go home to get closer to your emotional support network, but you cannot because freght is slow and what comes takes you further away, not closer. Yet you take the load because you need the money. You might want to change fleet owners, but you cannot because you cannot afford the travel and down time to change trucks.

Falling on hard times at home is one thing. Doing so on the road is quite another. At home, at least, you know where the food shelf is. On the road, you don't, and if you locate one, you don't want to spend fuel money to get there.

When freight is slow, and money is tight, you have nothing but time to sit and dwell on your negative circumstances, looking out your truck window at people who seem to have things to do and are happily going about their business.

Expedier wannabees, if you are sure you want to get into this business, be damn sure, and be forward looking enough to be financially ready for what's out there.

For some, what is out there is laying in the back of a truck far from home, crying yourself to sleep at night, and not knowing when you will be home again.

Hope does not cure hunger. And with fuel at $4.00 a gallon, it takes more than a good attitude to get you home.

I'll say it again:

If you are thinking about jumping into expediting in today's unfavorable economic environment, be certain you can support yourself and your business, not with hoped for expediting revenue, but with money you already have in the bank.
 

LDB

Veteran Expediter
Retired Expediter
Expedier wannabees, if you are sure you want to get into this business, be damn sure, and be forward looking enough to be financially ready for what's out there.

If you are thinking about jumping into expediting in today's unfavorable economic environment, be certain you can support yourself and your business, not with hoped for expediting revenue, but with money you already have in the bank.

Those are key statements and important points to be aware of, not only for expediting but for any business endeavor. Be sure of your finances before getting into anything.
 

Tennesseahawk

Veteran Expediter
While I don't doubt there are owners who withhold money while their drivers are out; more than likely, drivers who tell these stories have already spent their wad.

This is an industry full of drivers and owners alike, who have traditionally had a lack of wisdom when it comes to their finances. And at a time everybody needs more miles to overcome the price of fuel, and fewer miles is the reality, those owners and drivers will be weeded out. Also, those owners who do hold back money to save their own behinds, along with naive drivers who stay with them.

There simply is no room in this biz for those who can't manage their money.
 

Kyreax

Seasoned Expediter
ahhhhh, crap.

So, what is the prediction here? Fleets, owners, drivers leaving this profession en masse with a glut of trucks on the market?

I'm not understanding a few things still:

If the price of fuel is high, isn't there a fuel surcharge passed to the driver to cover that, or is it the deadhead miles that kill you out there?

How the heck does one team make it and others miserably fail in the same company? Bad run choices? Taking cheap freight offers? High truck and lifestyle overhead? If dispatch is unbiased...does it just come down to luck getting an offer?

And if there are successful, motivated o/o's like ATeam (Phil/Diane) making it with the "truck payment from hell":rolleyes:, why couldn't the average guy here with a cheaper truck make it?

There's just so many variables for me to consider before I get into the field...:confused:
 

ATeam

Senior Member
Retired Expediter
You are asking great questions, Kyreax. Since we have already met and talked, I'll leave it for others to answer.

I just want to clarify one thing. We do not have an unmanagable truck payment. Very soon, we will have no truck payment at all. We made a nice down payment with money we saved while driving fleet owner trucks. Every time a payment has come due, we have been able to make two or more.

Now, please, back to our regularly scheduled programming and the questions Kyreax asked.
 

x06col

Veteran Expediter
Charter Member
Retired Expediter
US Army
Yes and, look at all of em planning on going to the truck show. I'd suggest if you are going for other than entertainment, don't.

If you are going to take time off to sit in a parking lot with your peers, you are really foolish. You can do that each day in truck stops all around the country.

If you are going to look for a gadget for your truck, or to explore entering the biz in this environment, you are really, really foolish.

Myself, i'm about an hour from there and i'll be running. This tuff times thing is just beginning for many. You just can't crunch the numbers for making the soup any thicker in this environment for drivers for contractors, or, for those of you anticipating the biz as not same household drivers and get involved with that three way split. The outcome for O/O with some high dollar equipment, without lots of ratholed cash, don't look good either. If you wanna travel, go get a RV. It's fun.
 

pjcampbell

Seasoned Expediter
I am not sure if this is on or off topic. Is part of the problem that there enough people willing to accept a sub par amount of money that it's difficult to find a decent pay? I am not in the business at the time but have been in and out from FedEx employee, FedEx OO (Ground P&D not CC), and working for myself. I generally try to follow what's going on with the OOIDA magazine, Light and Medium Duty truck etc. because I would like to drive but I just can't see making enough money, without going to a lifestlye I know I couldn't handle (OTR, away from home often, etc.)

I am pretty good with numbers and love to sit down with Excel and see what possibilities there are. Just for example, FedEx Home, I was going to be given a route but I could not see making more than 35K working long hours. It has been a while and I don't have the numbers to back that up right now but I am pretty sure that is what I came up with. That is take home, working at least 40 hours a week... 52 weeks a year. I don't know about most parts of the country but here 35K is absolute garbage. You could VERY barely, as a single person make ends meet with 35K, renting, and your truck would have to be your only vehicle.

What am I missing...
 

Kyreax

Seasoned Expediter
I just want to clarify one thing. We do not have an unmanagable truck payment. Very soon, we will have no truck payment at all.

I just meant it as an example of overhead, trying to come up with ideas of why some of the others aren't making it and literally starving. I think that a $250K truck would not be a great idea for me as a solo o/o:D, at least not now.

I know you've been successful and stayed positive, managed your finances well (wasn't your last career in financial advice, Phil?) and made some very informed choices. That's why I saw your team as a great source of info at the truckstop the other day. I learned a lot from both of you. Fate is a wonderful thing.

If you can make ends meet with the really super nice truck (read: more $$ outlay every month), with a much smaller box than most(less load offers maybe?), and a CR Unit(lower cargo weight available), I would think that that money-management and informed financial decisions are your strong points!

These starving truckers you mentioned: What does the average driver make, working for someone else? $20K a year? less? One or two hiccups in income can be the ruin of anybody in that position.

So the real question is: Is it the slow freight or is it the poor financial decisions of the drivers that didn't prepare for the slowdowns?
 

x06col

Veteran Expediter
Charter Member
Retired Expediter
US Army
Don't think you are missing anything there pj. Most that are drawn to this are not business people, or, don't play well with others(don't like punching a clock or, supervision), like to screw the pooch when they can. Those types that are used to managing on what you quoted. The ones with some work ethic, business savy usually allow their "don't wannas get in the way(don't wanna be gone from home, etc.) Others that do well and are successful, get drawn under by their toys and overextension in other areas. So... there are many things to miss, but just look at America today, and you'll get it.
 

davekc

Senior Moderator
Staff member
Fleet Owner
I believe the "rose colored glasses came off"
While a rarity, I think Phil's first post is spot on. The second, well, that offers little comfort to the team you are referencing, that is starving. Probably would have left that out.
But,
If you are thinking about jumping into expediting in today's unfavorable economic environment, be certain you can support yourself and your business, not with hoped for expediting revenue, but with money you already have in the bank.

I think this quote from your first post is accurate. Same with some of the colonel's references, or should I say observations.
There are plenty of successful people people operating, but it is much tougher jumping in right now unless you know what you are doing, or are working for someone that actually does.

For the ones that are struggling, there are numerous reasons which everyone has displayed. It only takes one to start the ship sinking.
 

aripen

Seasoned Expediter
I too am good with numbers. And I have an additional business that can support the lack of earnings in my truck for the time being. I think there is a tremendous difference in earnings between solo, team, and team WG. In my opinion, and from what I have learned from talking with others, one can not even compare them with each other. Then you have the "dedicated" runs that keep miles down and can get those drivers home more often. I am running solo again in my D surface unit. I have been consistently earning above average for most solos, according to others I speak with. I live very simple while on the road, cook all my meals, and go without the impulse purchases. Unfortunately, with all these positives I am still falling short on my bills each month and having to pull a paycheck from my other company. What does not make sense to me is that I have been out for nearly 2 months straight and if I go home at all I will fall into the hole deeper. Living the OTR lifestyle has its fun times, but without being able to support myself completely with the earnings from the truck its a lifestyle that quickly gets old.
 

ATeam

Senior Member
Retired Expediter
I believe the "rose colored glasses came off"

My vision is as clear as ever. What changed is general economic conditions. I call 'em as I see 'em. The problem never was my unfounded optimism. It was your unfounded gloom. Kindly note that we did everything we set out to do, and then some. My optimism was not unfounded. It was spot on. As economic conditions began to deteriorate, I talked about it, and took heat about that too. Go figure.
 
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x06col

Veteran Expediter
Charter Member
Retired Expediter
US Army
That is too bad with that kind of effort. Just clarification for many that you cannot support that Ivory Palace and all the high dollar clowns that come with it. Not to mention the stockholders, outside things like qualcom etc. Escrow accounts are anuther thing, had your predecesors played fair, you wouldn't have that monkey on your back. Expediting, unfortuneately, has become a dip in the pie for most except a few of the fortuneate ones doing the windshield time. I feel for ya bro.
 

davekc

Senior Moderator
Staff member
Fleet Owner
My vision is as clear as ever. What changed is general economic conditions. I call 'em as I see 'em. The problem never was my unfounded optimism. It was your unfounded gloom.

I wouldn't call it unfounded gloom, or I wouldn't still be here after 23 years. But, I do know what is realistic, and what isn't.
 

ATeam

Senior Member
Retired Expediter
DaveKC said, "But, I do know what is realistic, and what isn't."

So do I.
 
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aripen

Seasoned Expediter
I am by no means posting to look for tissues...lol I have made my bed and sleep in it I shall. I would just like to share my experience so others can make an informed decision.
 

greg334

Veteran Expediter
I see something interesting, it seems I have been saying something like this for a long time.

It seems odd that other comments I have made in the past (recent and a long time ago) that were poo poo'ed as not needed are now needed.

Umm...... amazing....

I don't know if the glasses have actually come off maybe they are Photochromic rose color lenses in the frames, the justification seems to be plausible but not really....

For the sake of clarification I want to know where the idea of this being an easy business to learn has gone to and what happened to the defense of that premise. By the way I take easy business to learn implies that one can make easy money.

Maybe I am wrong with all my thoughts on how hard this business is. Maybe a rude awakening I had some time ago should be on everyone's to do list.
 

davekc

Senior Moderator
Staff member
Fleet Owner
I am by no means posting to look for tissues...lol I have made my bed and sleep in it I shall. I would just like to share my experience so others can make an informed decision

I think that is the value of your post. You are working a second gig and still struggling. It is important that people entering this business really understand what they are getting into.
What was only a year ago, is much different today for many.
 

dabluzman1

Veteran Expediter
Retired Expediter
It sounds like this is a hard biz to learn.
Maybe.
Is it tougher to learn than being a doctor?
Is it tougher to learn than being a cook?
I believe we all need our position in life to be "tough" to justify what we are doing.
While I wish for success for everyone in every job, hey failure happens at an alarming
rate in small business ventures.
Some very smart people have probably lost everything in expediting.
I know a lot of smart people who bought Enron.
All I am trying to say is success in Expediting isnt any tougher than opening up a
deli, embroidery , or dry cleaning biz. They all have their learning curve.
If you go in with pie in the sky expectations and not enough of a reality check, the fall will
probably be quick. In some cases it will be bad luck, others bad decision making, or bad
work habits and some poor health and a million other reasons why success eludes some yet embraces others.
This aint no get rich quick or easy scheme. Times may be tough now, but they are the only times I have dealt with in expediting.
If you dont have the experience of knowing how to survive tough times in business
then this may be a bad time to get into expediting.
On the other hand, if you have the savy and determination required to survive these lean times, you will probably prosper.
Tough biz to learn, maybe.
 
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