Where's all the trucks?

NoProblem · Jun 15, 2010

Hi all!

Curious about Experienced Owner Operator teams......where are they? We've got qualified teams, but no trucks to put them in.

We are experiencing an increase in long haul, team expedite shipments as I suspect most other carriers are - so we are looking for good O/O teams to run our long haul expedites in and out of TX, AZ and some CA.

We placed an add offering to pay $1k to sign on with us, pay $1.20 per mile +FSC and upped our extra stop pay.

What does it take to sign on qualified team Owner Operators these days?

Anyone?

davekc · Jun 15, 2010

Hey Steve,

The reason is probably close to what I posted on a few days ago. New folks even with a decent down payment are being turned away by most. They are looking for higher down payments and several years experience at a minimum.
Look at the classifieds from new truck dealers and you see very little inventory because of it. There is some used/repo stuff out there but most of it now is junk or something over priced.
The buying power for the most part is coming from fleet owners and there aren't a huge number of them.
It is a tough gig to lure them unless you are paying higher rates other than what they are currently getting.
I think this is going to be a challenge for any owner operator based carrier.
Many went down in flames when the economy tanked. Some are still in the industry, but their asset left and wasn't replaced.
Probably should add that the new CV2010 gig is likely to dump a few out of the food chain as well.
Could be totally wrong, but there's my penny in the pond.

OntarioVanMan · Jun 15, 2010

A shortage of trucks was predicted at the beginning of the year..tight credit, low rates being the main culprit...1.20+ is still too low...

this is panning out better for us established sprinter owners with 3 skid capacity...

davekc · Jun 15, 2010

There is many carriers at or close to the 1.20 rate. Several are above that. I think one would have to find someone not satisfied where they are at, or the rate would have to be higher than what they currently get.

JohnMueller · Jun 15, 2010

Steve;

All of the above mentioned are correct, but also feel like folks are still very skiddish with the economy. Most don't have that comfort level to place the big deposit from their savings as a down payment on a truck, not knowing what the near future will bring.

It's a tough call, but freight is moving its best in years. Make's it a challenge to recruit on all of us.

Glad to see you (Steve O and A Blair) rockin'.

Thanks,
Hot Fr8Recruiter
John M

x06col · Jun 15, 2010

NoProblem said:
Hi all!

Curious about Experienced Owner Operator teams......where are they? We've got qualified teams, but no trucks to put them in.

We are experiencing an increase in long haul, team expedite shipments as I suspect most other carriers are - so we are looking for good O/O teams to run our long haul expedites in and out of TX, AZ and some CA.

We placed an add offering to pay $1k to sign on with us, pay $1.20 per mile +FSC and upped our extra stop pay.

What does it take to sign on qualified team Owner Operators these days?

Anyone?

Hey noproblem, they are ALWAYS around when you don't need them, and NEVER around when you do. Amazing thing......ain't it???? Amazing!!!!!

davekc · Jun 15, 2010

A couple of years ago, many entered with creative or sub prime financing through Alumi-bunk who is now out of business.
Might be a additional factor as those types of financing/leases aren't available any more.

highway star · Jun 15, 2010

davekc said:
Alumi-bunk who is now out of business.

Wow, hadn't heard about that... What a shock!

davekc · Jun 15, 2010

They closed down their Toledo place a year ago. I think they do some minor work on trucks in Woodhaven but that is more of a cross dock now.

Vinnie T · Jun 15, 2010

It's tough right now that's for sure. A. Blair has a solid rep in the industry, but the competitors maybe paying more then 1.20 plus FSC. If you have a team, maybe up the pay a bit or goto a % program for the teams, it may help attract more O/O into your fleet. Chances are teams will make up for the little extra you may have to pay to atttact fleet owners. Just a thought, 1.20 plus FSC is decent no doubt.

moose · Jun 15, 2010

I can tell you exactly why ,
and it is none of the above .
but was told that if i do so i might get the boot by the EO police .
i think that if you allow me to do so ,it might be OK ,so you will have to ask me to .
i hope it will be constructive for the carrier ,i really do .

Vinnie T · Jun 15, 2010

moose said:
I can tell you exactly why ,
and it is none of the above .
but was told that if i do so i might get the boot by the EO police .
i think that if you allow me to do so ,it might be OK ,so you will have to ask me to .
i hope it will be constructive for the carrier ,i really do .

You can't go through all that and not tell us....

Scottrucks · Jun 15, 2010

highway star said:
Wow, hadn't heard about that... What a shock!

They still have a Cdn operation...
Sales Office located in Mississauga, ON
and the factory is located in Dundalk, ON

I was in the office about a month ago...
Website is still active too???

greg334 · Jun 16, 2010

Maybe this is a trend. Moving out of the class 7 trucks into class 8 trucks with integrated sleepers because they are about the same price?

Talked to a guy who just bought a 2009 Cascadia at auction for $35k, a repo that needs a some trans work but he said he will have less than $50k into it when he is done with it with a 24 foot box and all. So why bother to get a 'custom' sleeper?

davekc · Jun 16, 2010

Scottrucks said:
They still have a Cdn operation...
Sales Office located in Mississauga, ON
and the factory is located in Dundalk, ON

I was in the office about a month ago...
Website is still active too???

I think they are just doing service in Canada but I could be wrong. Toledo is closed down and if you look at their website, the last update on inventory was 10/09/2009

Doggie Daddy · Jun 16, 2010

highway star said:
Wow, hadn't heard about that... What a shock!

I'm shocked also,shocked that they lasted as long as they did.

guido4475 · Jun 16, 2010

Vinnie T said:
It's tough right now that's for sure. A. Blair has a solid rep in the industry, but the competitors maybe paying more then 1.20 plus FSC. If you have a team, maybe up the pay a bit or goto a % program for the teams, it may help attract more O/O into your fleet. Chances are teams will make up for the little extra you may have to pay to atttact fleet owners. Just a thought, 1.20 plus FSC is decent no doubt.

Vinnie, what are you on? $1.20 plus fsc ? Back in 1995 While at Panther I was getting paid $1.35, and that was when fuel was below $1.00 a gallon.Everything else was so much cheaper.Now, everything has sky rocketed in price, but yet, the pay continues to fall.

greg334 · Jun 16, 2010

I thought rates were going up, which meant that the rates to the truck should have gone up too.

davekc · Jun 16, 2010

I think 1.20 plus FSC is a industry average with several paying above that. I am also mindful that several are below that.
FSC is another factor. We are running in the 30's as a average with a every so often luzer (automotive) thrown in. As to whether we take it just depends. DOD loads are .21 for a straight but the rate is 1.55 or higher on those.

NoProblem · Jun 17, 2010

Wow, I certainly appreciate all the great replies! Thanks you guys and I'm glad we're not alone in this challenge!

And Colonel, LOL! Isn't that the awful truth!

It's definitely become a challenge to find qualified O/Os and I pretty much thought like John - can't say that I blame them one bit for being skiddish.

We're definitely considering different options concerning the pay and rates etc. like you guys are saying - heck, since most of our runs are long, we are even thinking that we might need to mix it up a bit and do more regional length runs so teams can get home more often. Who knows? lol - -it can make ya crazy.