How Will California Budget Woes Affect Expediters?

ATeam · Jul 1, 2009

California's fiscal year came to an end last night and no balanced budget is in place for the 2009-2010 fiscal year that begins today. The state will begin paying its creditors with IOUs starting tomorrow if a last-ditch effort to agree on a balanced budget is unsuccessful today.

Why IOUs? Because it is as the governor said on June 2: "Our wallet is empty. Our bank is closed. Our credit is dried up."

Even if a budget is agreed upon in the next few hours and IOUs are averted, bilions of dollars in spending cuts will immediatly follow. This will reduce economic activity and bring the reduced-services possibilities mentioned above closer to reality.

As expediters who sometimes haul freight into, within and out of California, Diane and I continue to watch this story with great interest.

Dreammaker · Jul 1, 2009

Many moons ago when California was having a similar revenue problem, I and another driver got stopped by CHIPS for exceeding the speed limit near Barstow. At that time, the CHIPS officers had not been paid for about a month. The officer checked my license, registration, and bills of lading. Since the other driver had passed me going down a hill, he was more interested in the other driver. After about 10 minutes of chatting, he let me go. No warning, no ticket, no nothing. So, I guess it could go either way with CHIPS and law enforcement.

Rounkles1 · Jul 3, 2009

How Will California Budget Woes Affect Expediters that the is burning question: The answer is :We are in the business of moving freight this is what we do our job is secured .Nothing moves in or out of that state without wheels.Either from the Airport from seaport or from the railhead to the crops in the fields it's freight shippers will pay any price to move it . The only thing that I see is the price we pay at the pump,but that is an easy fix .fill up before or after you leave. I welcome your reply. KEEP THE FREIGHT MOVING.

simon says · May 24, 2010

Re: How is Expediting in California?

Just asking (especially Dave KC & A Team): How is expediting in California anyway? If one were to move to the Oakland/SFO area, based on a wife's business venture, can one make any regular money out there?
Would you run up and down the state of California? Occasional trips to Vegas- perhaps Landstar would have freight out there? Perhaps into Phoenix at times?

I know NUMMI is either closed or closing soon, and not sure if that made much difference. I would probably need to invest in a gen-set and APU, which is one concern. I would not be interested in running back out to the midwest, that's for sure...I am and will remain a solo. The class 8 I now have can do anything the west would throw at me, so that would help and I doubt I would need a tandem (pusher axle) either.

Any input is appreciated- either can send me a private email...B.T.W.- who is OP? ha, ha

davekc · May 24, 2010

I'll shoot you a PM.

Moot · May 25, 2010

greg334 said:
But Dave, I'm confused, what is the excitement over the Cryoport shipments?

Is the Cryoport similar to the Pallet Reefer? Cold shoulder to Pallet Reefer

davekc · May 25, 2010

Close. I believe one requires the customer to have a filling station and the other one doesn't.

ATeam · May 25, 2010

Re: How is Expediting in California?

simon says said:
Just asking (especially Dave KC & A Team): How is expediting in California anyway? If one were to move to the Oakland/SFO area, based on a wife's business venture, can one make any regular money out there?
Would you run up and down the state of California? Occasional trips to Vegas- perhaps Landstar would have freight out there? Perhaps into Phoenix at times?

When I started this thread (How Will California Budget Woes Affect Expediters?) I was thinking more about things like state park availability for layovers, response times if we needed an ambulance, enforcement actions motivated by revenue generation, rest area maintenance, etc.

As far as the freight goes, California express centers have always been and continue to be good for our reefer-equipped, TVAL-capable CR-unit. If the money was right, we would take a load to California in a heartbeat, without fear of being stranded high and dry. If the freight did not take us back east, we would be just fine running freight north and south and doing short runs.

You are asking about regional work and about that I cannot say. The more willing and able you are to go where the freight takes you, the more freight you will have to haul.

If we had a need to get home to Minnesota in a week or two, we would not take a load to California because we could not be sure that the freight would take us back in that short of a time period.