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Running To Cheap.

mcbride

mcbride

Veteran Expediter
Charter Member
>I think if we all had the guts to do what the guy in the
>article does, things would change real fast.

Yes Teacel, we agree. We have been talking about the current situation and it seems that the only people/companies not complaining about fuel prices, tolls, etc are the big carriers like Swift, J.B. Hunt, U.S. Express etc.

"Something" appears to be happening in the expediter industry now... look at the rate increases, incentive programs that are being offered by tri-state and panther this week. Maybe these companies are sensing a change or an awareness in drivers out here. Perhaps, there isn't the influx of new drivers like there used to be and there is a demand for the ones already out here. I don’t know but when we speak to expediters out here there seems to be a growing underlying feeling of discouragement.

The bottom line is that someone will always carry the cheap freight. I just read the web page of the company we work for and they are advertising how low and competitive their rates are, not much is mentioned on the quality of the service or the fleet. It is discouraging to look at the fact that when we started in this business about 5 years ago we made more money then than we do now. Fuel, tolls, insurance, food, repairs/maintenance, and truck prices have all risen dramatically BUT our rates per mile haven't, nor our fuel surcharges. As a matter of fact, some companies are still offering contracts to the auto industry without any fuel surcharge or are even using HHG for milage.

It sounds idealistic but we need to unite as a group and take a stand. There should not be such disparity among the rates that companies offer. When we first started Roberts and Tri-State were the big games in town, and people paid for what they got. Since then, the rates have steadily declined as well as the driver relations aspect. They claim it is to stay competitive but how can all these smaller companies that have sprung up all over afford to pay their drivers more per mile for the same freight that the larger more well known companies are discounting?

As I said before, it forces us to play the “change company game". Is it know wonder that many of us that post in this forum have been with as many as five companies! ? The irony is this influx and change has to cost the companies more overall. One would think that companies would strive for consistency and longevity in their fleet rather than rotating warm bodies.

Well, there I go again...better hop off my soap box.
 
T

teacel

Veteran Expediter
Charter Member
http://smileys.smileycentral.com/cat/12/12_2_14.gif For a driver of any other company to not take Panther up on their offer is either blind or crazy. I would do it or use it as a tool and tell the company I was with, I want more money per mile!!! OR I'm gone. It even has me thinking about getting a truck or 2 put some good drivers in them and cut them loose. I would qualify as coming from another company!!! $1000.00 and no fees for 30 days. Decal removal, QC payment, Insurance payment, and 1 month of escrow. IS THAT BAD????????

http://smileys.smileycentral.com/cat/384v.gif I think this offer is being made to strengthen their forces. Something is going to give and soon. By summer these fuel prices will be $2.50 or more a gal. Most manufacturing companies only have a 4 or 5% margin built into their overall price for delivery. They are going to start delivering 10 and 12 pallets instead of 1 or 2 like they now ship. Volume is better. The Crop’s selling product will charge more for 2 or 3 of something than it will cost the person to buy 5 or 6 of the same. Reason being the overall cost is far less (VOLUME). I still don’t see the big crops going back to the old way and stock pile, because it is still true today. Bird (money) in hand is worth 2 in the bush. So!!! If this is the case the carriers with the strongest and most proficient force will win!!!

http://smileys.smileycentral.com/cat/4/4_6_201.gif I think you are right about the new people not hanging in to get the experience. http://smileys.smileycentral.com/cat/4/4_14_1.gif I also see the discouragement in the drivers driving for the bigger carriers. I won’t go into why! Another reason I think the drivers are gun shy is about buying a new truck because Joe Blow company said they want the driver to have a new truck every seven years. (How can a driver justify the cost or save to buy on the low pay they get??? As you know I have a small Co., very small, and I have very (VERY) experienced drivers. It is better for me to pay a pro driver a little more and know I don’t have to worry about ANYTHING, than to pay a newbie less and have to worry about their every move until they get it right. I use the big guys as my trainer, Ha - Ha!!!!!

http://smileys.smileycentral.com/cat/12/12_1_102.gif Smaller companies can bid a job for less and pay a driver more because the smaller company CEO isn't getting six digit pay check, or doesn’t have big brother TL carrier and line haul to help out. (There is the volume I said. Your Co, has lots of company trucks in the other division) The small company has far less overhead, along with some other things helping pay the rent. (I can't tell all in this thread), but you get the picture. Years ago "for less" was a way or means of getting the work, but today how can a company say "for less" when the going normal rate is far below the cost of living rate!!! Ya Maybe the company is saying "for less" But I will lay any odds they are still getting their same cut, before paying Joe Blow driver. You are right about someone doing the job for less, but if the right drivers stick together and don’t do it, the ones that are doing it will do it on their terms. I mean they will get it there when they get it to them, not when it has to be there. And all the other BS that goes with this type of driver!!!

http://smileys.smileycentral.com/cat/4/4_2_102.gif As for the unite and take a stand. I don’t think so!!! Two drivers can’t agree on where to eat let alone something of this magnitude!!!

But then too, it isn't always the carrier companies doing the chopping. Some of these big Corps that use carriers is shopping around and using Company A's bid to stonewall Company B's offer. (Playing one against the other)

http://smileys.smileycentral.com/cat/12/12_7_15.gif You can have them!!!
 
Twmaster

Twmaster

Expert Expediter
>every seven years. (How can a driver justify the cost or
>save to buy on the low pay they get??? As you know I have a
>small Co., very small, and I have very (VERY) experienced
>drivers. It is better for me to pay a pro driver a little
>more and know I don’t have to worry about ANYTHING, than to
>pay a newbie less and have to worry about their every move
>until they get it right. I use the big guys as my trainer,


Hehe, one of the dispatchers at DX calls me his fire and forget driver. All he needs to do is send me the page with the job and he considers it done! :7

Frankly I am worried. I am watching the costs of everything go up and yet the sales droids keep selling work cheaper and cheaper... :( I need to buy a new van but I am nervious about making a commitment on a new truck only to have the bottom fall out.

Tony sounds like a great guy to work for. Too bad I am not closer! (if he'd have me work for him that is! ;))
--
Mike N
 
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