slow freight

osumike33

Seasoned Expediter
Just wondering how all of you in straight trucks are doing. I know that January/February are 'slow' months, but is this January/February slower than normal? Dormant? We are down about 44% from last year and going down even more from the way this week is starting, so just wondering if it's bad luck, is it affecting all carriers? One guy said it's as bad as it's ever been; another said as bad as three years ago....just wanted to get a wider view point, and possibly any thoughts as to why. Thanks...
 

OntarioVanMan

Retired Expediter
Owner/Operator
Think of the purpose of expedite? OR Where does the freight come from? Why does it even exist?

Mostly logistic errors, manufacturing shortages, shipper errors......
No loads means usually someone is actually doing their jobs....that is the goal.....Don't expedite...
It appears that is exactly what has happened...combine that with TOO many trucks/vans IE: over supply...

Loads are NOT guaranteed... There is no set amounts of freight .....it is what it is....

IF any of you actually pay attention to auto production you'll see the changes in assembly that are NOT in our favor....
The use of same parts on many platforms....forgoing the need for many machine setups and potential problems...

Welcome to the new expedite business model...
 

highway star

Veteran Expediter
Owner/Operator
Freight's been pretty good for me, but I'm with a carrier that has a fairly diverse freight base. I'm not sure what the percentage of auto is, but it's certainly below 50%.
 

OntarioVanMan

Retired Expediter
Owner/Operator
While I do believe auto freight is sort of the backbone of expedite....it shouldn't be the only factor...

look at production lines now....5 different models all the SAME chassis...all the same parts....now a supplier can have 2-3 dedicated machines pumping out these parts allowing room for breakdowns and never run out of parts....BEFORE it was 1 machine = 1 part...machine goes down meant expediting till they caught up....that is NO more happening so much....
 

xiggi

Veteran Expediter
Owner/Operator
Think of the purpose of expedite? OR Where does the freight come from? Why does it even exist?

Mostly logistic errors, manufacturing shortages, shipper errors......
No loads means usually someone is actually doing their jobs....that is the goal.....Don't expedite...
It appears that is exactly what has happened...combine that with TOO many trucks/vans IE: over supply...

Loads are NOT guaranteed... There is no set amounts of freight .....it is what it is....

IF any of you actually pay attention to auto production you'll see the changes in assembly that are NOT in our favor....
The use of same parts on many platforms....forgoing the need for many machine setups and potential problems...

Welcome to the new expedite business model...

No loads does not necessarily mean someone is doing their job better. In most instances it means production has slowed. More and more people leave the work place and more production gets shifted out of country. All that's points to less product moving down the road.

Sent from my Fisher Price - ABC 123
 

jelliott

Veteran Expediter
Motor Carrier Executive
US Army
I think it is a big part of Washington's inaction in the fall. Business held back on capital equipment and expenditures. First reason was fear of economic slowdown if we hit the "fiscal cliff". Second was until January congress had not passed the tax codes that effect business and equipment. So businesses were not able to project the true accounting costs of equipment purchases. Simply irresponsible of Washington. How can any responsible business run not knowing the cost/effect of making business decisions?

Now I am hoping that we will see a rise in durable goods orders as they finally have passed the tax codes......
 

blizzard2014

Veteran Expediter
Driver
There are a lot of changes happening in this business. A lot of loads I used to see are now gone. Like when International Truck and Engine moved over to the Menlo Load Board. Those loads are no longer available to me.

I just heard from a little birdy that all of the Case New Holland loads that used to be on NLM are now being posted on another board. I just lost another freight source. The game is ever changing!

Things are very slow and from what I can see the bigger carriers are scrafing up all of the freight and throwing it on their own trucks. There aren't very many scraps left over for the smaller fish to gobble up. And what is left over is going so cheap it's not even worth the time to fool with unless you just want to keep your drivers busy and buy a few happy meals with the proceeds.

It's pretty bad over at the company that I'm dispatching at right now. But then again there are always exceptions to every rule. Some O/O's might be having their best month ever. I just don't see how it's even possible right now.
 
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blizzard2014

Veteran Expediter
Driver
I think it is a big part of Washington's inaction in the fall. Business held back on capital equipment and expenditures. First reason was fear of economic slowdown if we hit the "fiscal cliff". Second was until January congress had not passed the tax codes that effect business and equipment. So businesses were not able to project the true accounting costs of equipment purchases. Simply irresponsible of Washington. How can any responsible business run not knowing the cost/effect of making business decisions?

Now I am hoping that we will see a rise in durable goods orders as they finally have passed the tax codes......

The economy has already contracted once. If it happens again manufacturing will never go back to pre-recession levels. I'm not sure what's going to happen in the manufacturing sector. But if business continues this way I'm not so sure the smaller companies will be able to hold on. The new 75 thousand broker bond will hit in July of this year and a lot of people in this industry will be affected by it. All we can do is strap on our seatbelts and hang on for one heck of a ride!
 

OntarioVanMan

Retired Expediter
Owner/Operator
.....the idea is to have NO expedite.....gee whiz....
that was ONE of the perks of multi platform model vehicles....LESS machine change overs causing shortages...and so forth.....
Granted it might make more sense to order that 100,000 $ spare motor...J.I.T. rather then inventory 1...
having worked indoors in a parts plant I seen the advantage of 1 or 2 machines dedicated to a specific part.....expedite trucks were cut by 70%....even when 1 machine went down we had enough parts to make the repair and keep on without expediting any parts...

so If these companies get rolling that means they'll run short of parts?...that is assinine thinking..
 

davekc

Senior Moderator
Staff member
Fleet Owner
The availability of loads overall seems less in January but I am also seeing quite a few more companies fighting over the same freight. I would anticipate some smaller outfits going by the wayside this year if it stays slow for another quarter. A spike in fuel prices will also affect the smaller outfits. Kinda like dumping more fuel on something already burning.
 

OntarioVanMan

Retired Expediter
Owner/Operator
The availability of loads overall seems less in January but I am also seeing quite a few more companies fighting over the same freight. I would anticipate some smaller outfits going by the wayside this year if it stays slow for another quarter. A spike in fuel prices will also affect the smaller outfits. Kinda like dumping more fuel on something already burning.

in all my years....shippers are more budget aware then ever....why use 3 cargo vans when you can use 1 sprinter?...and so forth up the food chain...
 

xiggi

Veteran Expediter
Owner/Operator
.....the idea is to have NO expedite.....gee whiz....
that was ONE of the perks of multi platform model vehicles....LESS machine change overs causing shortages...and so forth.....
Granted it might make more sense to order that 100,000 $ spare motor...J.I.T. rather then inventory 1...
having worked indoors in a parts plant I seen the advantage of 1 or 2 machines dedicated to a specific part.....expedite trucks were cut by 70%....even when 1 machine went down we had enough parts to make the repair and keep on without expediting any parts...

so If these companies get rolling that means they'll run short of parts?...that is assinine thinking..

That answer goes against common sense. The faster anything works, manufacturing, sports, accountant to baker the more mistakes are made.

Sent from my Fisher Price - ABC 123
 

OntarioVanMan

Retired Expediter
Owner/Operator
All Iam saying is IMO I don't think we will ever see the load volumes like in the past! Even if we do there are thousands of trucks more to compete with
 

zorry

Veteran Expediter
I had a brief encounter with a guy driving a yellow cube van.
He spoke little english.
Said something about hauling seven skids.
 

xiggi

Veteran Expediter
Owner/Operator
All Iam saying is IMO I don't think we will ever see the load volumes like in the past! Even if we do there are thousands of trucks more to compete with

It would be interesting to know how many van loads there was in say 06 compared to last year on say on nlm. Could be more loads just more capacity like you mention.

Sent from my Fisher Price - ABC 123
 
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