Jefferson3000
Expert Expediter
Recently there have been a few discussions on here about a few encounters with cargo van and sprinter owner operators allowing more than one carrier to “lease” their services. I believe that the thinking behind this is that two carriers would mean twice as many opportunities. Some even claim to have three. Because the “under 10K folks” are generally not subject to the same compliance rules that commercial grade vehicles are subject to, it is thought that this trend will somehow even the score for the bottom end rates that vans are seeing. However, I would like to offer different view.
Smaller expedited carriers (as well as many larger ones) generally have overlapping customer bases. Not many shippers, much less brokerage houses, have agreements to use one carrier exclusively. For an Alliance carrier who partners with other carriers, this can be magnified, until the gene pool becomes quite small.
For example, I do a truck search on the Alliance system looking for a CV within 50 miles of Podunk, WI. Four vans appear. After speaking to my owner op who is currently sitting there, I find that he knows the owner op sitting next to him. It turns out that the other O/O has an agreement with AA Delivery, BB Expedited, and XYZ Logistics, all listing his van at the current position. A load is posted and three carriers scramble to book the load for that same truck, each one bidding lower, knowing that, after my van leaves, there are TWO other vans sitting there besides theirs. What does this do? If the carrier’s revenue is not allowed to increase as freight increases because of false competition, they WILL NOT be passing any more FSC or otherwise to the van owner operator.
Next situation. I am searching Podunk, WI for trucks, not because I have an owner op there, but because my brokerage has a load needing to be covered. Three vans are listed by the carriers listed above, although there is in actuality only one van there. My brokerage is going to be tougher on the price we pay, because we believe that we have THREE options to choose from.
Cargo van owner operators are their own worst enemy in this recession. By allowing yourself to be leased to more than one company, CV owner ops create a feeling of disloyalty to the carrier, who may be working hard to book your truck, as well as take care of their customer’s needs. Many of you complain about the carrier not booking you, and yet the question remains: “Why would they work hard for you, if they know you will jump ship as soon as your “Plan B” pans out for you?” My recommendation is for any owner operator to find a carrier where they can trust the workers in dispatch. If you don’t really trust the first one, why would you add a second or third that you don’t trust either? If the definition of insanity is doing the same thing again and again, while expecting a different result, then why multiply your troubles? Trust is not built overnight. Trust takes time. A good relationship is not built overnight either. It requires risk.
Many owner operators are not as successful as they could be, because they refuse to trust and adjust their mindset. Do your research on EO, but understand that some information is now outdated and irrelevant to the current state of things. Expedited trucking is an ever changing industry. The only way to stay relevant is to listen and learn from the right people and places.
Smaller expedited carriers (as well as many larger ones) generally have overlapping customer bases. Not many shippers, much less brokerage houses, have agreements to use one carrier exclusively. For an Alliance carrier who partners with other carriers, this can be magnified, until the gene pool becomes quite small.
For example, I do a truck search on the Alliance system looking for a CV within 50 miles of Podunk, WI. Four vans appear. After speaking to my owner op who is currently sitting there, I find that he knows the owner op sitting next to him. It turns out that the other O/O has an agreement with AA Delivery, BB Expedited, and XYZ Logistics, all listing his van at the current position. A load is posted and three carriers scramble to book the load for that same truck, each one bidding lower, knowing that, after my van leaves, there are TWO other vans sitting there besides theirs. What does this do? If the carrier’s revenue is not allowed to increase as freight increases because of false competition, they WILL NOT be passing any more FSC or otherwise to the van owner operator.
Next situation. I am searching Podunk, WI for trucks, not because I have an owner op there, but because my brokerage has a load needing to be covered. Three vans are listed by the carriers listed above, although there is in actuality only one van there. My brokerage is going to be tougher on the price we pay, because we believe that we have THREE options to choose from.
Cargo van owner operators are their own worst enemy in this recession. By allowing yourself to be leased to more than one company, CV owner ops create a feeling of disloyalty to the carrier, who may be working hard to book your truck, as well as take care of their customer’s needs. Many of you complain about the carrier not booking you, and yet the question remains: “Why would they work hard for you, if they know you will jump ship as soon as your “Plan B” pans out for you?” My recommendation is for any owner operator to find a carrier where they can trust the workers in dispatch. If you don’t really trust the first one, why would you add a second or third that you don’t trust either? If the definition of insanity is doing the same thing again and again, while expecting a different result, then why multiply your troubles? Trust is not built overnight. Trust takes time. A good relationship is not built overnight either. It requires risk.
Many owner operators are not as successful as they could be, because they refuse to trust and adjust their mindset. Do your research on EO, but understand that some information is now outdated and irrelevant to the current state of things. Expedited trucking is an ever changing industry. The only way to stay relevant is to listen and learn from the right people and places.
