Van Lines Close

tallcal101 · Mar 16, 2007

Two of the major Van Lines are very close to rolling out their Expedite programs.Should be by fall.Within both Van Lines,there are strong electronice agents who have lost much of there hauling and bookings to the expedite industry.The van lines will be relying on the agent families to drum up business in their regional markets.There has been talk of this happening for sometime,but the talk is for real this time.A great deal of marketing will go into the roll out. I think the agency families sales departments will be reluctant to jump on board initially unless there is good money in it.The industry in general(household goods)is lacking in new corporate business,as companies move fewer and fewer employess each year.The electronics and special products/trade show business is also down double digits in the last 5 years.So,the expedite industry is the natural next step.Refer business will not be part of the initial roll out.
In the short term I don't see them making a big impact.The big agents will protect their major accounts.Depending on the reception of the agency families,the growth will be slow.It's important for us to protect our market share by doing all we can do to be on time and looking good.
Look for the familiar colors of the van lins in question to start to show up on straight trucks in the next 6 months.

kangar0085 · Mar 16, 2007

Booo!

ndfan · Mar 16, 2007

who are the companys

nightcreacher · Mar 16, 2007

united and mayflower

Jefferson3000 · Mar 16, 2007

Well, I've already seen quite a few United straight trucks (w/ sleeper), but I believe those are used regionally as they are sent out from a hub with smaller deliveries.

Drive Safe!

Jeff

Driver for 15 years
O/O for 13 years
OOIDA #829119

Lawrence · Mar 16, 2007

Much bigger carriers have thrown their hat into this industry and have had a difficult time understanding it and putting their arms around it. Anyone ever hear of a company called Con-Way? Nuff said.

Most expedite carriers are so imbedded into this market that they will have a long, hard road to catch up.

But hey - this is America. The land of the free.

Lawrence,
Expediters Online.com

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kangar0085 · Mar 16, 2007

I absolutely agree Sir Lawrence. I give 3 months to each company before failing

nightcreacher · Mar 16, 2007

dont be so fast to knock the van lines,with their type of system,they dont have to use expedite to survive

davekc · Mar 16, 2007

They may gain alittle in computers or expand on the trade show circuit, but that is about it. They can't provide the service for less than most are doing it now. No real threat that I see.

Davekc
owner
22 years
PantherII
EO moderator

joebob1_30132 · Mar 16, 2007

I think I already saw two...I didnt get a chance to talk to eith one to say waz up with dat.. snall straight mover trucks with sleepers I thought they were small movers ,,you know appartment size stuff.

nightcreacher · Mar 17, 2007

there are many companies doing expedite now,thats whats keeping fed ex and panther busy,these companies dont know how the service is done.

ATeam · Mar 17, 2007

Anytime anything new emerges into a field of endeavor, or a shift in a way of doing business occurs, the established players tend to say it is not a threat. It is human nature to resist change. Pooh-poohing changes as they occur before your eyes is one form of that resistance.

Virtually everything that exists today came about as a change from something else that came before. Remember when foreign cars were not a threat to the big three? Remember when just-in-time freight did not exist? Remember when the internet was not used to bid out freight?

I am not saying this will happen, but I am saying it could. A few year from now we might be saying, remember when UPS had no expediting trucks? and Remember when the big-name van lines had no expediting trucks?

If moving companies start bringing on straight trucks and the people to run them (contractors) to compete for a slice of the special goods/trade show/electronics business, it is a natural and logical step for the owners of those trucks and the carriers that have them in their fleet to want to expand their straight truck market share, in other words their expedited freight business.

Thank you Tallcal for pointing out this new development in our industry.

By the way, for those of you who do not know Tallcal, he is himself a player in the van lines business. He knows of what he speaks.

davekc · Mar 17, 2007

Terry and I had a chance to talk with one of the VP's of a large moving company/carrier at the last eo workshop. They have an interest in the expanding of thier "blanket wrap" freight, but that is essentially it.
Don't think you will see them pulling into typical expedite manufacturing locations on any grand scale.
As Lawrence said, so many have tried and failed when the profits were much higher, I don't see someone coming in and reinventing the wheel.
Except....maybe cheap foreign labor and operations from Mexico. Alot of variables still out there on how this would affect the trucking industry.

Davekc
owner
22 years
PantherII
EO moderator

simon says · Mar 18, 2007

I think you are right. Besides, there are so many little expedite co.'s now trying to suck up the cheap freight, that I'm still waiting to see if UPS can pull it off or not...

tallcal101 · Mar 19, 2007

United's big push will come in the fall.It's being driven by 5 very rich agents with big fleets and important customers.They will protect their customers at all costs.All of us know some of these customers quite well,as we haul their freight too.
I would agree that pure freight (Palletized commodities) will probably not be freight the van lines will go after intially.Their freight operations are minimal,mostly contract milage drivers that pull 53 foot air ride equipment.North American used be a major player in the freight arena,but with the Allied N/A buyout by an aqusition turn around outfit,they got out of freight.The company that bought them is cursing the day they bought two American van Line companies.They have lost their a**,and are slowly selling off the International divisions,the only thing worth money.
As I said before,stay on time and please the custoemrs and we should be alright.Don't get sloppy or complaciant,as the van line agents in question will have excellent company drivers on these accounts with excellent equipment.