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ericmoss37

Seasoned Expediter
Offline
How much is the lack of auto sales effecting the business? 45% lower sales over last year in the auto industry. I am lost for words when my drivers call and ask about whats going on. I am getting a bit worried about getting decent loads in these poor economic times. It's bad enough that the trucks are not moving, but even worse I could have drivers walk away for higher paying jobs at home.
 

fastrod

Expert Expediter
Offline
Might want to try getting your own authority. That way you can find freight from various different companies and brokers. It will be a little more work for you but your trucks will be moving and your drivers will be happy.
 

OntarioVanMan

Retired Expediter
Owner/Operator
Offline
How much is the lack of auto sales effecting the business? 45% lower sales over last year in the auto industry. I am lost for words when my drivers call and ask about whats going on. I am getting a bit worried about getting decent loads in these poor economic times. It's bad enough that the trucks are not moving, but even worse I could have drivers walk away for higher paying jobs at home.

Eric..thats why we call it thinning the herd...sorry but you might lose a couple head....but it also maybe time to park 1 or 2 vans during this time....they'll prolly not make enough to even pay for repairs anyhow....just having a driver in the seat doesn't always pay....park them and make more from the tax write-offs...it's business
 

hondaking38

Veteran Expediter
Offline
make sure they can go to canada, had 4 offers to go there yesterday, but i only live 120 miles from the border...so there one way trips
 

OntarioVanMan

Retired Expediter
Owner/Operator
Offline
because some carriers don'y or won't try to get loads back out....and some like with your carrier just automatically get out and not wait....thier mistake....cuzz we know better....;)

did you get my pm about chicoppee Ma...$6.27/qt
 

ATeam

Senior Member
Retired Expediter
Offline
How much is the lack of auto sales effecting the business? 45% lower sales over last year in the auto industry. I am lost for words when my drivers call and ask about whats going on. I am getting a bit worried about getting decent loads in these poor economic times. It's bad enough that the trucks are not moving, but even worse I could have drivers walk away for higher paying jobs at home.

You can tell your drivers what they probably already know. The financial crisis and economic slowdown (recession) is reducing the amount of freight that is available to haul. You can't haul what they don't offer. If the freight isn't there, it isn't there. You would not be giving good news to your drivers but you would be telling them the truth. They may very well be better off finding higher paying jobs at home.

It is not just in the automotive sector that freight has slowed. It is in most if not all sectors. I know of fleet owners that are leaving the business today, not because they had to or because they failed, but because they see what is coming and have the option of avoiding it. They have had a good run in the business but have concluded that this is a good time to call it a career. I admire their choice. Why push a rock uphill if you don't have to?

Diane and I are choosing to stay but are looking ahead to slower freight and longer waits between loads. These are the slow times that people warned us about when we were researching the industry. We took those warnings to heart and are prepared.

If you are not prepared, I don't know what to say that will make things better. The recession is squeezing a number of people out of the business and presenting new challenges to those who stay.

Speculators take risks with their money, but only to a point. If the markets move against them, the smart ones cut their losses and stand aside. Parking your trucks for a year in a slow-freight market may cost you less money than running them. Selling them at a loss and standing aside may be the better decision still.

Doing something different, like getting your own authority, may be a good choice. But I expect there will be a bunch of folks doing that, which will make things less lucrative and more competitive for everyone in the business.

In the long run, getting your own-authority may turn out to be a worse choice than parking your trucks or getting out. Running successfully under your own authority requires a different focus and skill set than running under a carrier's authority. While it is an option, getting your own authority may only prolong the inevitable and increase your losses along the way.

Getting your own authority because you are intellectually and emotionally drawn to that kind of business, and you have customers you can develop and a plan for success can be a very good thing. But getting your own authority because you are being squeezed out someplace else is different. It seems to me that the own-authority play is best made when you are on the offense, not the defense, and when you know what to do with the ball.
 
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x06col

Veteran Expediter
Charter Member
Retired Expediter
US Army
Offline
It might also be, that if a couple weeks are that large an issue for you or, your drivers, then this may well be the time to "pull the plug". Or, take a looong hard look at where you may be better off doing things you/they don't wanna.
 

Lawrence

Founder
Staff member
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Also...tell them to thank all the Toyota and Honda drivers for buying foreign vehicles.

See it does make a difference if you buy a Ford, Chrysler or GM product.
 

x06col

Veteran Expediter
Charter Member
Retired Expediter
US Army
Offline
I'll agree Lawrence. It's way too bad it has come to the point that we thank folks for using equipment from manufacturers you mentioned. However, myself, like the folks that bought from them, I actually enjoyed delivering their needed items, and avoided the UAW broken companys like the plague the last few years. Just how ya look at it.
 

OntarioVanMan

Retired Expediter
Owner/Operator
Offline
Actually expedite loads are a killer of the auto industry...somewhere some how someone messed up...It adds directly to the cost of that car/truck.
Right now with the slow down, suppliers are able to keep up for the most part barring any unexpected breakdown of machinery...
Goes to show by the expedite freight of Ford and GM just how bad thier supply chain was and unorganized.
Thats why counting on auto expedite is a very bad habit....I mean look at Timken....almost 12 loads a day average outta Bucyrus plant alone and now what 2? Since they reworked thier computer system...no company can survive that for long.
Any carrier too focused on the auto business is going to suffer..and especially YOU the owner/driver.
If your carrier does 50% or more your in real dodo..thats half the fleet sitting around...
 

Jack_Berry

Moderator Emeritus
Offline
ken,

the last ofc gig i had was in transportation.
we were supposed to be saving money with the new computerized trans program but the constant expedites outside the system changed nothing. after 6 months the big boss was telling our supervisors we were the problem.


i was told by the onsite product planners in fargo and grand island it was less expensive to bring in items expedite direct to the factory rather than pay a frt chg, in fee , storage fee, out fee and transport across town, from the storage space.
 

cheri1122

Veteran Expediter
Driver
Offline
Also...tell them to thank all the Toyota and Honda drivers for buying foreign vehicles.

See it does make a difference if you buy a Ford, Chrysler or GM product.

A: I deliver freight to Honda and Toyota, more than to the (former) Big 3.
B: Honda and Toyota are providing good jobs for our working folks - they don't pay ludicrous salaries, but they are pretty good jobs, in an economy with a serious - no, make that a crippling, shortage of them.
C: If the American mfrs can't compete, (which seems likely, given their inability to change their wrongheaded practices and procedures), then they deserve to fail. That's how capitalism works, no?
As true as the bumpersticker "Without trucks, America stops" is, it's just as true for decent jobs - we cannot survive as a healthy society without jobs that provide an opportunity to get ahead, instead of behind. I wish the American mfrs were providing them, but they are not, are they? :(

 

OntarioVanMan

Retired Expediter
Owner/Operator
Offline
The new Toyota plant is huge down here near Tupelo MS...great for Ms and TN.....
same for I think its a Honda plant over in Greenfield Ind...almost done.....
 

ericmoss37

Seasoned Expediter
Offline
Thanks for the advice. I really do enjoy reading my copy of Expedite Now when it comes in. I am going to hang in there I am rather new to expediting. I got my three trucks at the begining of this year so I don't really have the option to park them more then a month or two. Selling them at this point is not a option either. I have to protect my FedEx Ground business. I have four routes over there so taking a loss on trucks is out of the question. I do have a advantage because my trucks are climate control and they have lift gates plus they are class 8's so they can handle more weight. The drivers do need to get Hazmats.
 

highway star

Veteran Expediter
Owner/Operator
Offline
But Lawrence, if you were to buy a Camry you'd be supporting fellow Kentuckians working just 50 miles down the road from you. I delivered in Georgetown yesterday to the recently opened powertrain building. You are buying American when you buy Toyota, Honda or Nissan, especially when you look at the foreign content of Big 3 cars.
 

Jack_Berry

Moderator Emeritus
Offline
But Lawrence, if you were to buy a Camry you'd be supporting fellow Kentuckians working just 50 miles down the road from you. I delivered in Georgetown yesterday to the recently opened powertrain building. You are buying American when you buy Toyota, Honda or Nissan, especially when you look at the foreign content of Big 3 cars.

funny how when folks look at foreign cars they forget that many are mfg'ed in the us of a and that the plants employ people living in the us of a at pay rates higher than walmat greeters. yes the big money may go overseas but at least it is not going into a multi million golden parachute for an executive who cannot manage his company.
 

BillChaffey

Veteran Expediter
Owner/Operator
US Navy
Offline
It's kind of hard to blame the Big Three Auto manufactures, they have only known for 35 years the Oil producing Countries have had our Country by the throat. For all those years they bribed Congress so as not to improve on mileage, Cars & Trucks just kept getting bigger. Now there just asking for some of the bribe money back.
 
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