Cargo Vans Who Run For More Than One Carrier: An Editorial

fastrod

Expert Expediter
Yessir! Those that have that pie in the sky, big hotshot, "exclusive use" mentality, are a dying breed [literally].

Never could figgure out why someone would want to run "exclusive use" for a buk seventy, when they could go the same direction for tree seventy/

Would I be correct in assuming that the difference between buk seventy and tree seventy would be the cost of the baby sitting service?
 

Jefferson3000

Expert Expediter
I think it is the bigger carriers that are driving the rates down. Because of the large amount of trucks they have under lease and the large number of loads they do each day they can make a smaller profit on each load. It is the Walmart theory, make a small profit on each one but the large volume of sales makes the profit add up. The mid size carriers have no chose but to lower their rates even lower to try to maintain their market share. This only works when a carrier has O/Os willing to run cheap freight and so far there seems to be no shortage of O/Os willing to do this.
As far as van drivers running cheap and illegal I dont think that is happening on a large enough scale to affect rates for all vans. The bigger carriers are the ones driving van rates into the ground.

It's amazing that in every other area of economics, it's well known that in almost every case, it's the big corporate conglomerates that come and attempt to force out the "mom and pops" by slashing rates. Can someone say "Wal-Mart?" Bank of America tried to kill every small, regional bank in its path by reducing everything and making it impossible for a small bank to compete. Yet in trucking, it's believed to be the "mom and Pops" that are destroying the industry.
 

jaminjim

Veteran Expediter
Jeff said
it's believed to be the "mom and Pops" that are destroying the industry.

I think that would depend on your rates, If you are bidding competitively with the large Carriers, then you are not driving rates down. If on the other hand you bid with the mind set that you need to get this load and drop your rate then you are helping to drive rates downward.
 

DannyD

Veteran Expediter
I'm gonna disagree here. If both parties know upfront then it's not cheating. I've been with one company & also recently tried multiple. If one company could keep me busy enough I agree I'd like to go that way.

However, as has been mentioned, there are some companies that would prefer you to also have another company. That's not cheating on anyone. If company A wants ya to use another company & company B knows upfront that they're the 2nd company ya are signing on w/, then I don't see the problem.

I'm paying all my insurance. A company has nothing to lose by having me on board. If they get me 1 run a year they've made a little something off me at least.

I'm not saying 2 companies is the perfect answer. I've even had gripes about the 2 company system. At the same time, if everyone knows upfront it's not cheating.

I am leased to one carrier, and I couldnt be happier. They keep me as busy as I want to be, and my needs are being met.There does not seem to be much loyalty or trust when a person is leased to more than one carrier, as far as I am concerned.

Kinda like a person that cheats on their spouse and expects to be trusted.
 

guido4475

Not a Member
I'm gonna disagree here. If both parties know upfront then it's not cheating. I've been with one company & also recently tried multiple. If one company could keep me busy enough I agree I'd like to go that way.

However, as has been mentioned, there are some companies that would prefer you to also have another company. That's not cheating on anyone. If company A wants ya to use another company & company B knows upfront that they're the 2nd company ya are signing on w/, then I don't see the problem.

I'm paying all my insurance. A company has nothing to lose by having me on board. If they get me 1 run a year they've made a little something off me at least.

I'm not saying 2 companies is the perfect answer. I've even had gripes about the 2 company system. At the same time, if everyone knows upfront it's not cheating.

But has the 2 or 3 carrier syndrome worked out for you? Where is the dedication and commitment in that to a carrier? From what I have been hearing, on here and elsewhere,it just isnt worth it.Stick to one carrier at a time.

When I ran a s/t I always had this way of thinking that if I cant make a living off of 70 hours a week, I need to do something else.
 

DannyD

Veteran Expediter
I just got started again. So at this moment I'd say no. There are some 1 company situations that aren't perfect either though. So if something is good or bad, I don't think it so much has to do w/ how many carriers you're signed on w/ as much as it does your specific situation.

My point though was it wasn't like cheating on your wife. In my case company #1 wants me to have a 2nd carrier.

If all the companies are looking at the same board, then like Jefferson said you might be the only truck in town & 2 companies are bidding against each other when it's only your truck there.

If they're looking at different boards though, as a driver you've got that many more chances to get loaded.

If one company can keep ya busy I'd agree that's the way to go. The logistics of it are better. So I'm not disputing that. I'm just saying I don't think it's cheating if you're signed on w/ more than one.
 

xiggi

Veteran Expediter
Owner/Operator
Jeff said


I think that would depend on your rates, If you are bidding competitively with the large Carriers, then you are not driving rates down. If on the other hand you bid with the mind set that you need to get this load and drop your rate then you are helping to drive rates downward.

You seem to be assuming the large carriers are setting the top rates. I think some of the large carriers have as much to do with discounted rates as do small ones.

It is a known fact in ltl and tl that some of the big companies are driving rates down and even running at or below cost. They have the cash reserves to do so until while they drive companies teetering on the edge out of business.
 

greg334

Veteran Expediter
I think many of you are missing some pieces to the puzzle on the van issue. Most of the companies who use vans are not involved with the rate setting unless it is there own customers, there is also the brokerage issue and all the other ways that the money the shipper is providing gets cut up (multiple brokers under one roof comes to mind)

We can't forget that a company like FedEx is not like panther or even Landstar - they are in fact a package company with freight divisions and have a brand that they protect. Panther is not a brand like them and Landstar is a service provider more along the lines of mainstream trucking.

But alas this is a business where the shipper is king and they are the ones who set the rates - not the companies providing the service. Many shippers know what they can get away with and have driven the price down because of the need to control their budget, they have more options and more sources to get the job done than they had 10 or even 3 years ago.

Cheating?

The only cheating I'm concern with is the one where the van owner is cheating under DOT regs. He/she needs to be legal, other than that if he/she wants to double or triple book loads - great go for it. Because in business you have to take care of your business first, not worry about who you may p*ss off or cause to be jealous.
 

Moot

Veteran Expediter
Owner/Operator
Cheating?

The only cheating I'm concern with is the one where the van owner is cheating under DOT regs. He/she needs to be legal,
Greg, as a former van owner yourself, what exactly are the DOT regs these owners are cheating under?
 

skyraider

Veteran Expediter
US Navy
the company I drive for doesnt care if u work for someone else, just tell them when u r out of service, but I have not worked for another company as a 2nd choice. It would seem to confusing to me and really,,I dont need to do it anyway........:eek:
 

OntarioVanMan

Retired Expediter
Owner/Operator
Well one thing for sure...knowing what I do now after all this time IF I were in the need...I would do whatever I had to do..
These fine carriers out here care for only themselves no matter what phoney facade they put up...
Take care of yourself first because they do..
Remember your needs are always, always secondary to their needs....I guarantee that.
Run your business the same hard nose way they do...no heart..just business, YOUR way!
 

CharlesD

Expert Expediter
Like I said before, all the carriers that would be agreeable to this sort of arrangement are for the most part looking at the same freight. How does having more than one company looking at the same loads increase your chances of getting one of those loads? They're just bidding against one another for your services anyway. If anything, the load is probably going cheaper because the companies bidding on it think there's more competition in that area than there really is.
 

OntarioVanMan

Retired Expediter
Owner/Operator
Like I said before, all the carriers that would be agreeable to this sort of arrangement are for the most part looking at the same freight. How does having more than one company looking at the same loads increase your chances of getting one of those loads? They're just bidding against one another for your services anyway. If anything, the load is probably going cheaper because the companies bidding on it think there's more competition in that area than there really is.

Example...I am say on with you Charles and say Transporter...you both are looking at the same frieght...neither one knows of the other and you both are bidding on the same load...low ball gets it...ME...I' am the loser..no thank you.
Maybe it would work IF one has a higher rating on the say NLM board then the other...
 

greg334

Veteran Expediter
Greg, as a former van owner yourself, what exactly are the DOT regs these owners are cheating under?

Well I don't know, maybe it has to do with the issue of running without an authority while hauling freight or without the right insurance or not having signs or ...

If you are leased under a contract, the carrier assume responsibility for you to a point as part of their operating requirements, right?

I understand they are supposed to have some records on hand, like who you are or what insurance you have, maybe even an inspection or two to show your vehicle is within some sort of good condition. But on the other hand terms are thrown around here in generic forms quite often; leasing to a company and being independent are two different things - leasing you are operating as an extension of the company but get a 1099, independent you are billing them for the service and you don't get a 1099 - or did this all change in the last few years?
 

RLENT

Veteran Expediter
Well I don't know, maybe it has to do with the issue of running without an authority while hauling freight or without the right insurance or not having signs or ...
If you are under 10,001 lbs GVW and you do not haul HazMat (and consequently are not required to placard your vehicle), you are not considered a Commercial Motor Vehicle (CMV) under the FMCSR's, and are not required to mark or sign your vehicle.
 

aileron

Expert Expediter
.........
These fine carriers out here care for only themselves no matter what phoney facade they put up...
Take care of yourself first because they do..
Remember your needs are always, always secondary to their needs....I guarantee that.
Run your business the same hard nose way they do...no heart..just business, YOUR way!

Couldnt say it better myself.
 

greg334

Veteran Expediter
If you are under 10,001 lbs GVW and you do not haul HazMat (and consequently are not required to placard your vehicle), you are not considered a Commercial Motor Vehicle (CMV) under the FMCSR's, and are not required to mark or sign your vehicle.

Yea that's all true but a few states like mine consider a commercial vehicle any vehicle used for purposes of a commercial nature - meaning you are compensated for the work you are doing, you are engaged in some form of commerce. Which means that as a commercial vehicle and over 5500 GVW, you have to have signs when engaged in commerce. There is no distinction if it is interstate or intrastate work being done here and I haven't seen a change of this yet which I welcome.

The Federal DOT regulations are not the only one's being used, the states have their own requirements and agree to use the federal regulations - they are not mandated. You can ask the Feds directly how it all works, they will explain the agreement process and all of that to you.

Logging was another example, weight limits and restricted routes are still another. Just because it is under 10k doesn't mean that all the regulations on any level are not to be followed.

If this was the case, insurance companies would not require van drivers to have a CDL or some sort of professional license. The feds would not require van drivers to apply for work like a truck driver, still a 10 year history, still a medical card and still a DOT # needs to be there for interstate work, right? The CSA 2010 would not be something that would affect drivers of vans, it still does.
 

fastrod

Expert Expediter
If this was the case, insurance companies would not require van drivers to have a CDL or some sort of professional license. The feds would not require van drivers to apply for work like a truck driver, still a 10 year history, still a medical card and still a DOT # needs to be there for interstate work, right? The CSA 2010 would not be something that would affect drivers of vans, it still does.

Well my insurance company doesnt require a cdl or special license, I dont need a medical card, and I dont have a dot number because there only issued to vehicles 10,001 lbs. and up.
As far as csa 2010 check JJ Kellers site for info on that. Some van drivers might be affected, but it would be a very small amount.
 
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