Shippers Might Be Taking Over Trucking: Will The Market Ever Get Better?
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- Опубликовано: 8 июн 2024
- We are all wondering: When will trucking get better? When will the freight market turn? And we are all staring at CAPACITY versus VOLUMES. But perhaps there is something else we should be paying attention to: SHIPPERS and their plans for the future.
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Bottom line. A shipper has a load for $1 RPM ( or less). We all know this is a total loss for a carrier but someone takes this load to off set fuel costs. 1) the shipper learned they can get it moved for $1 or less. 2) shipper won’t want to lock in on a contract rate when they see it will get hauled for $1 or less on the spot. 3) shippers will have the same costs as carriers to set up or expand their own fleet. If we loose at $1 RPM so will they. So save money put it on the spot for $1 and it will get hauled.
For this market to turn ALL carriers need to stop hauling cheap freight. Let it sit and rot on the dock. Shippers want to starve us out so time to flip that switch. Stop hauling cheap freight NO EXCEPTIONS!
My definition of cheap freight is a RPM that does not cover ALL costs of moving that load with with some profit.
This idea of I got $3 going out and $1 getting back gives you an AVERAGE of breaking even is ridiculous. EVERY load you load must be profitable. If not, you are the problem.
We are based on the US/mexico border.
Mexican fleet owners have taken over, they cross the freight across and deliver themselves, taking advantage of the growing demand using cheap unregulated,unsafe, underpay drivers. They are buying American used trucks and taking them to Mexico.
We are not seeing the benefits of this growing demand.
Plus they stay in the U.S. and work under other MC to haul freight. This needs to stop it’s hurting our industry.
Freight has to be tracked digitally with a proper system in place in order to avoid double brokering and Mexican carrier’s using US MC authorities.
Mexican fleets should have the same regulations as Canadian Truckers. Brighton Administration has got the country in an uproar and we are losing our ground trying to battle the corruption.
This is 40% of the problem right now. They are flooded in cali taking a $1 a mile back to texas
Everyone needs to read this and send copies of it to those listed below!!!
I will copy this and send it to my congressman, maybe my commie Senator's in AZ.
Thank you for clearly exposing this from your location.
Plz send this information to anyone you can so they know we know. Recommend OOIDA, Gov Abbott, your Senator's, your congressman.
When one country takes another countries resources, This Is War. It always has been AND OUR OWN GOVERNMENT & CORPORATIONS ARE CONDUCTING THIS F'n War On Us.
The whole idea of the Declartion of Independence was to make sure we had the Power, in the 1st & 2nd Amendment, to fight Tyranny. What we are experiencing is far worse than what the British did, they just wanted taxes to pay for their army. We are experiencing Tyranny & Treason. And everyone must scream loud and demand Our Reps act to stop all this crap that we are suffering!!!!!!!
We just cant take 2 million drivers and find unity in such a diverse industry. If we all worked for one company then there could be better balance.
As an owner operator....im at the mercy of my customers! Everyone is my customer and im only responsible for myself. Moving freight is my specialty. Miranda brings up what most drivers never see or understand....
Control is only an illusion. Driving still remains the dream.
I am a former focus broker, fleet manager and account manager for a mega carrier but now I own a small carrier and been in this business 17yrs. This is a really bad time. And the people that make it through will reap the benefits on the other side. But here’s the thing. There are only so many private fleets. You have to think about the volume of freight that has to move daily. The private fleets can’t get trucks or trailers fast enough, let alone be able to afford to grow it bigger or fast enough. Let’s say a private carrier wants to add 1000 trucks which usually takes years. You’re looking at 150 million for trucks 50million for 1,000 trailers. So at 200million from the jump. That doesn’t include recruiting, pay, incentives, 401k match, insurance (most are self insured so add a billion in the bank for those 1,000 trucks) don’t forget if any lawsuits happen due to an accident that’s variable really but I think y’all get the point. Private fleets, mega carriers, midsize to large carriers dipping into the spot market is literally nothing new. Usually they do it during peak spot market rates but now they are drowning along with everyone else. They just have a lot of money to lose but some obviously haven’t. So all that to say this. We are in a recession. Most people right now are either out of work or lost their full time job to work 3 part time jobs. Everything is political. Trucking literally rises and falls on politics, regulations, etc. I don’t see how people don’t get that. Trucking will recover. My business is doing very well. If I could lease on more people I would. Part of my company is in a niche with great customers. Do we have to take crap pay on some loads, yes. But they still pay a lot more then spot.
That’s it you said it all!!!
This☝️
You forgot to mention the “TAX SYSTEM “, the Mega’s can afford big time accounting firms to find them every Loophole available to cover their losses, Obviously everyone knows where all those losses are passed on too……As Robert Kiyosaki my favorite Entrepreneur said; ONE DAY THE BUBBLE 🫧 will BURST 💥…..So how is trucking going to recover and get better? Never gonna happen, all people are going to do is ADJUST AND READJUST AND ADJUST AGAIN AND AGAIN. Does it mean things are getting better because they play with our minds by dropping the price of fuel by a few pennies, then raise prices up again higher than they were before? NO. It is merely impossible for the Richest country in the World to be in a Recession. IMO, A Recession in the RICH 🤑 USA 🇺🇸 only means the people are Adjusting while the GREED AND GREEDY RICH enjoy nice fishing and Golf ⛳️🏌🏻♂️vacations. Keep on thinking positive people, the Rich Corporatists really love ❤️ CONFORMITY.
Bingo!
Politically correct 😂
Things will take a very large swing the other direction over a period of time if we install a different administration, it’s no different than the automotive industry or any other industry for that matter, the reason for the severe swings is the difference in political gains over the last 15-20 years.
Shippers will be outraged at how long their trucks are held up at receivers and back haul shippers 🤣😂😂. Their fleet won’t be available in a timely period to haul another load. They can’t afford to pay their own drivers properly during those away from home down times
When they start noticing how expensive it is to fix the trucks when they break down, paying drivers and insurance I’ll be shock if that don’t change their minds
This is not new information for them. They have to know how expensive it is to repair these trucks
I believe there are not wnough people who know how to manage transportation departments very well and as we all know, there is very little room for mistakes financially in transportation. Looks good on paper but is just the market looking for a quick fix, shippers trying to also manage their own transportation, as a whole, in my opinion, will fail.
These shippers will learn the hard way what happens when thier private fleet drivers decide to go Union. This is a lesson they will not enjoy but it will take time to work through.
The reality is that drivers is only one in the industry who’s not paid for overtime and plus market going constantly bad even diesel price going down,we must or stop driving or start to protest peacefully ( stop driving at least for 3 days) ,they need to hear us otherwise they will continue to 💩 on us !
Miranda is 100% correct. I work for a paper and cardboard company that owns it's own truck fleet. In the past 2 years we grew from 500 hundred trucks to 750 trucks. We would broker out a couple hundred loads a day in the past. Now we hardly ever broker out loads except on the weekends when our drivers are going home for the weekend to restart their clock. Also other companies and brokers reach out to us begging us to pickup their loads as backhauls for us.
Hey Miranda, I have worked for Walmart for about 5 years. I am relatively sure the company does not look at the spot market for backhauls. All of the stuff we pick up to take back to the DC's are regular vendors Walmart uses. Also, most of these vendors (shippers) use Walmart's information for verifying pickup information. I can't say for certain that it never happens, but I have never seen it. Also, most of the inbound freight to the DC's is shipped via outside carriers. I have no idea as to the amounts or percentages shipped via spot or contracted freight. The private fleet really carries a limited number of products from shippers. The main purpose of the private fleet is to maintain inventories at the stores. Anyway, I enjoy your videos. They really help by providing current information about the industry. I also hope those freight rates improve soon!
47 cpm to 54 cpm? Is what they are offering drivers. Im seriously refusing to drive a semi. I will deliver pizzas. Absolutely highway robbery. If you go to the store the cost have gone up. So explain the cost goes up but the wages go down?
There is a reason shippers reduced their fleets to begin with. It’s just those in charge don’t remember that reason.
The cycle continues. Capitalism. No rest for the wicked.
Have anyone noticed shipping and receiving times are ridiculous? They literally make it impossible to reload with these time gaps and loading and unloading times. On top on that brokers are penalizing us carriers for not making on time PU or delivery. We need to ban together asap to combat the brokers as well as the Shippers. We have the power to bring them to their knees if we unify instead of just waiting for them to cut us a break🙏🏾
The only break they cut is little rate increase for a bit which is not enough to make a real difference. The system has been banning together against the common man for a long time.
Times are hard on them too. They don't have enough workers willing to actually work. Our younger generation just don't show up. IDK why. So a shipper or receiver who used to have 10 on a dock, now only has 3
Listen hopefully we are all grown ups here to take good and bad news , great video. Peace 🙏.
Everyone needs to stop focusing on market rates and focus on what it costs to run a business. Look at what you're paying for items that you want or need and ask yourself is it justified knowing how much market rate is to haul that product. The answer is no. So obviously the shipper or customer is paying more to haul that freight then what carriers are getting. Stop hauling freight that is under operational cost. Operational cost is around what fuel cost is.
Yes this has been going on and Amazon has the biggest impact.
I used to work for Batesville casket co and they considered backhauls a 100% profit because when they built the price of the casket in it was round trip. They used to be a top notch company then they went on the nyse and now they treat the drivers like common folks.
It seems like a good idea. Problem has been that running their own trucks seriously detracts from their core business. I asked a shipping department gal one time why they don't have their own trucks. She said they tried that. It just didn't work out. Think about all components to creating a fleet, keepin trucks busy 10 mos out of the year & in months they slow down. Keeping drivers is a big problem, maintenance, not just like a shipping dept like they have now, but another whole huge department for shipping. Theres many more points but to little space & time to write it out.
Look at it this way a big corp would really have to buy another big corp like Swift. Cutting down on their own growth factor.
You mean Knight Transportation?
@@Solitaryman70 Yes sir
Always great content 🥰thankyou!
Thank you so much for the information.
Good Evening, I believe the shippers are looking at cost of course, with that said it is just a matter of time before they eliminate a vast majority of their broker business.
Technology has obviously vastly improved and our industry has become more streamlined by the day.
Why deal with brokers going out of business when they could post their own loads and don’t have the fear of paying twice if the broker bails or girls for bankruptcy.
Trucking is no longer a career, too many unknowns and given thy I would advise anyone to purchase a truck. Just think we are two weeks away from the speed limiter announcement, what will that do everyone’s business?
When I started in 96’ you made a decent wage, nowadays one could argue and be correct that trucking isn’t worth the time anymore.
Stay safe.
Some insider information from a friend with one of the leading truck manufacturers. November will mark the turn around in freight rates.
Thanks for the heads-up..i had my suspicion since i been seen this playing out with our Walmart accounts
Over the last few years I've had a few customers that have started their own fleets. I've even had a couple of them call me to see if I had any loads for them for a backhaul! The thing to keep in mind is that, as a shipper, it's a lot easier to save, or even make money, with their own fleet, when freight rates are high. The state of the industry right now won't be kind to their bottom line any more than it is to ours. Of course, the Amazons and Wal Marts of the world would love nothing better than to 100% own their own supply chain, eliminating any outside market forces entirely, but most companies aren't anywhere near their size.
You’re not doom and gloom you’re making us look at things right now what we need to be saying on our business with and I thank you for that😎💯🚛
A shipper will have to purchase a truck, multiple trailers, insurance, driver, develop a safety program, a transportation manger, fuel, maintenance, regulations, it's cheaper for them to continue the way things are, doesn't seem cost effective
Company driver here - I see shipper with there own fleets Walmart, Amazon.. also I see carriers become there own cold storage facilities like DOT logistics.. DOT logistics has it own cold storage with there fleets attached. ** rail and inter-modle is where i physically see the volume and trend heading.. there will be only so many for hire fleets after shipper get retooled….
The rail comments make sense. I'm an OTR driver but I've only moved 3 conventional loads this last month. The reason is I'm about to move our 5th power unit from Houston to Chicago for local Drayage work on the railyards.
In addition, to operate in the spot or contract markets, they will need to register with the FMCSA as a for-hire carrier as well as a Private fleet. That will require a different organizational setup, if any available, which also will have additional cost and regulatory burden.
I don’t think you’re doom and gloom you’re the highlight of my day when I’m driving 😂🎉
interest rates are extremely high to curb inflation. that price trickles down to the general consumer/trucker
Today I saw a train loaded with 53' domestic containers. All the big trucking companies had their names on those containers.
My company moves empty trailers on trains
Stay strong
We depend on your reports
I’m always excited to see a shipper expand there growing fleet it promotes better pay, home time, consistent pay, but at the same time turn over rate, overhead pay, and available freight at the time might lead to a greater expense shippers might not be ready for. As a swift OTR driver our first quarter we were down 2 billion and I’m still doing well and have a job. Not a lot of trucking companies can afford the loss with the gain.
I leased my truck to a private fleet. Doing well, just did my numbers. 2.28/mi for the last 4 weeks after all expenses other than my truck payment and only 6 more payments to go. I'm at .33cpm on fuel. I run short loads only in the midwest so I get home every weekend. Drive less than 2000 miles a week at 60-62mph. So... trucking isn't dead and learning to be hyper efficient will save you. Funny thing is 95% of trucks just keep blowing my doors off every day so the rates must be amazing.
30 years ago, family dollar and dollar general nestle had their own drivers. Then they did away with them and went to a third-party carrier for their store delivery. And now they are back with their own drivers again. Cost are high to keep third party can't blame them
Miranda and folks,
What is the longest time-frame you can imagine before Artificial Intelligence makes the truck driver obsolete... and what is the shortest? (For these purposes, let us rule out thermonuclear war and starting over again from flint stones.) So, we probably all agree that the transition will not be completed over the next five years. And probably we all would agree that there will not be commercial truck drivers a hundred years forward, the way things have been going.
Anyone want to take a guess at narrowing this window, with supporting arguments and information?
In my humble opinion, it would be ridiculous to posit that self-driving trucks will not have been fully phased in inside of 30 years.
I think that's going to hit Mega carriers mainly. Shippers that I haul for are usually small, and I don't see them dealing with the cost of operations of a fleet of trucks. On the other hand, it is good to see shippers that never had a fleet dealing with DOT Blitz, EPA, IFTA, California Clean Truck Program, Driver Qualification, expensive fuel, overpriced parts, low quality remanufactured parts, high insurance costs, equipment breakdowns by designed...
Bigger problem is what JB HUNT is trying to do with its intermodal network.
I think the trucking industry needs to become reunionized!!
The only markets that I can see being affected is Dry Van. Shippers will not do flat bed ,tanker or hardly even reefer in masse. JB is doing some bulk tanker and hopper bottom,but it would be insane for them to expand to such a needed level in order to put the megas and medium size fleets to the torch. The secret now for all of us is diversification in what we will haul and to where we will haul. Owner Ops need to sacrifice their home time and standard of living if they wish to survive.
Most of the big business had their own fleet years ago.
The only constant in trucking is change. As the cost of trucks go up. It will change back.
You said it all in your last video when you said volume is down 23% in the last 5 years. When you add to that if things were growing slowly volumes would have grown 12% over those past 5 years. I think it’s reasonable to assume that shippers are going to have the power for some time
I really appreciate the info you present here! If companies are trying to grow their private fleets, seems like the additional expense of new equipment would eat up any saving/ profits?? Other than WalMart and Target, who are the private fleets trying to expand?
You killin me smalls 😠😠!!
you are NOT doom n gloom. Heck, i quit my otr job 2 weeks ago because i REFUSE to sit in these dock doors anymore. I want "normal" again. I still like n watch your channel.Company i was drtiving for (based out of Farmington, NY) is a sinking ship and per the vp of operations, "yes, we are taking on water." It has changed to forced dispatch (seeing as how i got my butt chewed for denying two overnight loads that I DO NOT do.) I bailed out a week later when it took them a week to get me home to fl from gettysburg.
It's a mess! Cant wait for normal times to come back
@TruckingMadeSuccessful
And why should things get better?
As I have written to you here before, what is the combined population of
India
Pakistan
Bangladesh
Indonesia
the rest of Southeast Asia
Southwest Asia
Sub-Saharan Africa
Central- and South America????
And in a system of representative democracy, the more of these folks that are here, the harder it becomes to say no to more, unless someone thinks that the Bantu or the Sikhs will say --- will vote --- for no more Bantu and Sikhs!
Res ipsa loquitor.
Friend, a guy has to be at least "micro rich" or rather stupid before quitting even a lousy job. What, quit and storm off in huff, only to need to come back , hat in hand begging 2 or 3 months later?
this is the thinning of the herd and those who can last will reap those benefits. I believe there is a hurricane of freight coming. Like when the water is dried out and pulled back before this hurricane hits. Get your equipment in check your going too need it. Stay strong 💪
I would be nervous but I don't think they realize what's involved when it comes to owning a fleet. It's very expensive and mismanagement can have you end up being in a worse situation than before. Owning a truck is very expensive and they will find themselves breaking even or taking a loss if they don't know what they're doing
Companies are moving freight with private fleets it and for backhauls rely on spot market. Supply shifts in the supple and demand curve because of private fleets.
I have a customer that I haven’t run for in a while, who is sending their OWN in-house drivers home and selling their loads on free market because “it’s not worth sending my drivers when I get such cheap rates right now”. So he’s actually doing the opposite and making his fleet smaller at the moment.
A change in supply is not to be confused with a change in the quantity supplied.
I like reality. If I know the truth, I can deal with it. Thank you ..
Absolutely a concern. Basically, competition that only has the concern of breaking even. They don't need to make a profit in trans, just save on cost. We complain about $1.50 a mile, but if the shipper can break even at $1.40, then guess what, $1.50 is too expensive...
Apologies Sir, but I don't understand you. A supermarket chain, for example, will have all the same list of costs (including admin) that a big or small carrier would have. And no business wants to lose money in any of its divisions.
@@davidowen9671 You're certainly correct, they wouldn't want to lose money on the trans, but break even to cover the cost would be much cheaper than an outside carrier, who not only has the same cost, but is only making profit off the trans, not the sale of the item. When the grocery sells you an item, but that item has a lower trans cost, they've made more profit. Make sense?
If these shippers can take away all the loads from the brokers and carriers for hire and offer great hourly wages for their truckers, with a pension plan, health benefits and a great work life balance… as ex truckers. I would definitely dust up my CDL A and jump on board. Brokers carriers for hire and government oversight has WRECKED this industry.
Employees are a pain in the ass for a company that could do with outside labor. There are risks like liability and lawsuits in what is the most dangerous profession, minimum wages and employment overhead such as taxes, and insurances, and the always present threat of DC and politicians passing laws to protect the employee such as paying for detention, overlay and overtime. In many ways is shipper to pay more to outside carrier or contractor to haul the load without all these liabilities.
This is exactly what I mentioned about half year ago, more and more shippers are making a pool of their own traiers however they don't wanna by trucks and deal with all this "carrier business", istead they are offering PO contracts
Mexican drivers run for $700 a week 3600 miles 1099
My two cents is once these shippers see what exactly is involved in keeping huge fleets going and keeping drivers and dealing with accidents and law suits plus compliance they will re-evaluate if it’s cheaper when risk is involved. Not to mention there are so many little manufacturers who don’t have fleets already and who don’t have a clue what is involved that they will loose money trying to save money.
I Dub you ❤Hot and Spicy news🎉❤
Peace Peace Ms info thank you..
After re-listening to the video here are my thoughts.
- I believe most shippers will stick to shipping, now could they try and hire more last mile drivers, yes.
- I also do not believe most shippers want to be in the recruiting driver arena. They have enough on their plate trying to hire/retain warehouse personnel.
- I think it does make sense however for the shipper to trim the fat if you will with outside shipping costs ie..broker business.
- Why haven’t the brokers stood up and screamed the past two years regarding speed limiters? I think this is the biggest heist that is or will be occurring very soon, why?
- If the speed limiters are implemented what value proposition statement can a broker provide to the shipper? All trucks will travel the same speed, all trucks have tracking and all trucks (most) are air-ride nowadays.
- I believe that, yes the carriers will pay a price with speed limiters but the brokers will be most impacted.
- Freight waves had a survey recently and to sum it up, the most important metric for a shipper is cost; it’s not tracking or are you wearing boots or flips flops; it is cost.
- I do believe in time (not sure when) that mega-carriers and others, by the way it is already happening; they will not be able to put bodies in seats. The sacrifice vs reward vs risk just isn’t there any longer.
- Recruiting or lack of is why we will see major changes in our industry. They’ve gone through in my opinion the last generation of youngsters who want to try and drive truck.
- The lack of pay, the expense of being an OTR driver and giving up your life is not appealing to the masses.
- If speed limiters are adopted I believe OTR in general will become a thing of the past eventually. This has been talked about since I started in 96’.
- Trucking is in for a ride the next 5-10 years and unfortunately the men & women who are sacrificing their family life and their own livelihood will suffer the most.
Let’s face it most of these companies are not in my opinion willing to take in the risk associated with the transportation well risk.
I hate to say this, but they also do not want “us” to be the face of their company either.
Well Said, the well kept secret is ; In Reality any load that is booked has 7 days to deliver from when the Driver picks the load up and Signs the BOL, after 7 days the Shipper considers that a Service Failure…Brokers and Dispatchers will never let drivers know this because they want their Company Bonuses, Speed Limiters 😂, why would they schedule loads at 50 mph? It’s all a trick to get the drivers to do more work for less money, and then Praise them for delivering ON-TIME for the appointments the Company sets, NOT THE SHIPPERS. As long as the freight is delivered within 7 days from the pickup time, the shippers don’t give a hot crap. BTW, The Rail has 14 days.
The most significant aggravations you deal with on a daily basis are when a shipper throws a load out to twenty brokers. These twenty brokers then take up your time getting twenty different rates from carriers. Per your remarks, we don't need brokers. Cargo should be negotiated between shippers and carriers.
I think the number of trucks, truck payments,fuel cost, Insurance etc is going to be way to expensive for private fleets over time vs a one time payment to a for hire carrier that really the $ is in their control (shipper) unless it's a hot load. It will eventually get to a point where they start having too many loads in house and will need to move loads through for hire carriers anyway.
100% agree
Very true : shippers are taking over . This trend has been obvious here in Canada since last Spring . LOBLAWS and JBS , some of the biggest here are building their own fleets
Thank you for your videos. Very interesting and well done !
They said the intermodal was gaining more traction. JB Hunt has cornered the market. Also WALmart is going to completely prioritize there loads. I work for SWIFT. They stated intermodal was picking up faster than anything.
All it would take is 24-48 hrs for all drivers to shut down and not accept any loads to help the rates and show them the impact of truckers but they continue settling for low rates so its just going to get worse. Sadly
Unfortunately in this scenario owner operators are quickly exhausting their utility to the shippers. Shipping companies like Amazon for example are growing so quickly and settling up Distribution Centers locally. It will eventually be more cost effective to just hire truck drivers at this rate. Their goal is to increase volume in order to scale and report positive quarterly earnings to shareholders.
Those private fleets won’t make a dent in total spot market capacity. They might do backhauls with a nearby supplier or bring back used dunnage and packing materials, but I don’t imagine they’ll be a lot of these private fleets. That’s nothing to go crazy over. All the major private fleets still do business with the mega carriers and spot carriers when it’s convenient, albeit on the cheap.
Cutting out the middleman has never hurt the commerce (historically).
Hey LEEETSSSS GOOOO!!!! Thank youu🎉🎉. Shippers expanding their own fleets. Is a recipe for disaster. Imagine having 300 trucks that you didn’t before. Now they will find out the ridiculous maintqnce costs.
Shippers is a small part of the problem, they are paying more for the shipping, private fleets cover THEIR personal loads but what about the loads that hit the market? the problem is the brokers/agents taking 30% to 40% off the load
Spot rates do suck, and contract rates do too…but there’s good freight still to be moved. You need good relationships with agents who’ve got the best freight, but the spot market isn’t probably the place to find it.
and where do you suggest we find those agents?
@@duvasio8956exactly
Everyone can tell you what to do but NEVER HOW TO DO IT! It’s a difference
If the shipper or Broker has no way of moving the load, they would have to re-negotiate with the shipper or the shipper would just have to pay more because without us, their loads won’t move. But unfortunately, with truckers being so desperate, either with high payments and insurance and caught in the trap. They’re going to take those loads. And end up going out of business, because we have way more to pay. Then everybody gives us credit for. You make barely enough to pay your truck payment your insurance maintenance but they don’t care about family, which we still have to support.
Shippers are also opening up in house brokerages.
These changes are all cyclical. Shipper will add equipment to do their own movements and a few years later they decide to stick to their core business and hire for transportation. They realize that managing equipment and drivers is a big hit in their P&L and leave the transportation to shipping companies .
I’m more concerned of government working with mega suppliers and pushing the little guys out. Even this would be cyclical bc some transportation companies can’t manage growth but short term it will hurt the little guys. Supply and demand works its way out unless government keeps meddling in the equation .
When shippers have to deal with the company driver and driver retention etc. There will be room for others
I wonder about all this. I realize I've been involved in the trucking industry for fifty years and have seen things that worried me all along. I also realize I'm currently involved in a niche market, (moving livestock feed manufactured by big companies). I will say this, in this segment of the market I have seen manufacturer/shippers try about everything. Owning their own trucks and trailers, to getting rid of their own trucks and trailers. Currently one of the prominent ideas is to get large contract companies to take these problems off their hands. Well that worked to begin with, but then these companies started demanding rates made it possible to take care of both their drivers and the bottom line. The upshot of that is many of the receivers are buying thier products to be picked up at the plant instead of having it delivered by the manufacturer. That's where we come in. By not gouging our customers and providing them with good service, we still get the freight we need.
The size and geography of North America allows and makes convenient for huge amount of freight to be shipped via railways.
Not only are companies self hauling..
There backhauling through brokers.
If shippers expanding their fleets are a concern, then thats a win for company drivers that would have even more options to choose from. If each shipper can't woo enough drivers, then there will always be hired freight to haul.
In a video you showed how to get direct shippers on dat but how do you find direct shippers on truck stop also thanks
If I figure it out I will make a vid!
Some shippers will do it for a short time til they find out their not efficient enough. Takes a lot of personnel to plan,move and maintain trucks. They can't nearly be as efficient as a company that's only purpose is to move freight.
Don't listen to them. I love the way you don't candy coat things.
Those already entrenched or with money and connections (the new ones) will rise to the top and dominate. I think the typical smaller company will "just get by" in this market. The smaller ones may be able to "partner up" or grow through merger and consolidation but fighting with only rates and prices sounds brutal
Miranda tells the Truth, The Truth delivers Freedom, Freedom is beautiful, Miranda is Beautiful!!! Gotta Love Miranda...
dont ever apoligize- for giving truth let the ego struggle
Nah! Not worried at all. They don't want the risk or the lawsuit that follows
A typical company says a driver earns 1 day off per week. We are an 8 day week organization, thus 45.6 days. Companies believe that is too much. For the first time, I might get that time. Because of age and medical issues. Based on the life cycle, I am living on borrowed time.
I think, is nothing to worry about it is almost compare o said that electric truck would take out all the spot carries loads.
Here no all the shippers has the capacity and money to build a private fleet
Don’t panic and be proactive
That’s really getting on the professional end of it because you have to have drivers. It’s gonna take care of your equipment number one. You have to have experience drivers to make sure that the load can get there and get back if you got everybody coming in beat up your equipment. It’s gonna cost them shit load of money, and they won’t make it
@@Joe-qv6jhYes, but they are paying ridiculous prices for brand new tractors which basically wipes out the repair savings.
@@Joe-qv6jh
Spot on, Joe. Thanks.
And
And why should things get better?
As I have written here before, what is the combined population of
India
Pakistan
Bangladesh
Indonesia
the rest of Southeast Asia
Southwest Asia
Sub-Saharan Africa
Central- and South America????
And in a system of representative democracy, the more of these folks that are here, the harder it becomes to say no to more, unless someone thinks that the Bantu or the Sikhs will say --- will vote --- for no more Bantu and Sikhs!
Res ipsa loquitor.
@@Joe-qv6jh I agree the future does not look bright. Your solution would definitely work but at this point in politics it is just wishful thinking. I saw a shipper sign posted on the window that said "In order to pick up a load you must provide a CDL or picture id. Picture ID? Are you kidding me? Who is picking up a load with just a picture id? We all know the answer. Smh
WE NEED AN ALLIANCE FROM BIG CARRIERS COMPANIES AND ALL LEASE AND OWNER OPERATORS, SO WE CAN STOP LOW PAYING FREIGHT, ITS SO HORRIBLE, ONLY THIS WILL GET JOB DONE, GET TOGETHER AND REQUEST FAIR $ FREIGHT.
Doom and gloom?? How about dynamic and glamorous 😊
I've seen more and more brokers I used to book loads from with their company names on the sides of trailers
They most likely already had them. Most mega carriers run a greedy brokerage on the side
Let us not distract ourselves. The real player facing this threat is brokers. Shippers already know this but when will we take marketing our services SERIOUSLY and I mean everyday every week and every month serious? I’ll say prepare.
So here’s what I think some shippers will go in-house maybe a 20% increase overall but a lot will get scared when they see the cost of liability. I do think that Brookers will go all the way of the dodo bird in about 10 to 15 years owner operators will have no other choice, but to go directly to the shippers. Also let’s not forget the fact the trucks will be driving themselves in about 15 years so they won’t need Owner operators
Doom Queen ❤
The problem is the interest rates. Smaller business are being handicapped by larger corporations in order to out compete the smaller companies. Smaller companies cannot borrow money to help with inventory and cash flow. This reduces freight on a large scale. Large shippers have not stopped moving freight nor are they in the business of trucking. They sell the shipments to mega carriers and giant brokers at the lowest bid. EV manufacturers do not have enough available trucks nor the charging infrastructure to support your argument. Rates go down investments go up then freight increases which will fuel demand.
The truth always seems to hurt ppl.
I’m not sure that is what’s happening. Some Shippers, etc may have private fleets but many big shippers like General Mills, Kellog, Lowe’s don’t have a private fleet (albeit Lowe’s stores have local delivery trucks) and the cost of equipment and all the costs of labor it doesn’t make sense to me that that is the way things are going. Freight rates are low enough for the big shippers why would they want the costs of new, equipment, hiring , labor costs, etc.? Now as far as rail and all that, for non time sensitive freight , I can see Shippers going that route. The amount of Carriers (probably mostly one truck type operations or very small ones) going out of business may be increasing but many may be going back to company driving positions which shifts but doesn’t shrink overall capacity . Hang in there, Miranda!
Id say, its going to be interesting as to who will survive the high interest rates environment. According to the producer manufacturing index, shippers are in no shape or position to start private fleets. Id go do some research on the trucking companies and owners who survived the Paul Volcker era, and use their strategies.
If they were, private fleets will become unionized lol.