Carriers: 2009 To Be Slow Year in Trucking

[ATeam]

The Wall Street Journal October 24 article Shipping Firms Gear Down as Slow Economy Takes Toll is must reading for expediters, and especially for people considering a move into the expedite industry.

While the article is mostly about big trucking companies, it talks about freight slowing at a traditionally busy time and across multiple transportation modes. I don't see much for expediters to cheer about in this piece.

See also the EO thread How's Business Recently?

2008 seems to be slower than 2007. People quoted in the article say the whole year 2009 will be slower still. Truckers living on the edge now are not left with much hope that a rapid improvement in general economic conditions will occur and work in their favor. People thinking about becoming truckers should not only look before they leap, but look twice.

A bunch of expediters now in the business will be still standing on New Year's Day, 2010. But 2009 does not look to be a banner year.

 

[moose]

Thanks for sharing Phil.
indeed , another interesting set ,that tell us what we already know .
it is though out there and it is going to get worst.

another massive carrier have declared chapter 11 this week
GAINEY transport of Grand Rapids M.I with its 3,500 tractor and 260 million in imidiet depth , is now a thing of the past .
still in operation by court order till a settlement with the lenders achieved .

attached to that the ever increase costs of new regulation and doing business ,and you can see why more and more trucking company's will go out of business next year.

let me Please ask you this :
dose Expediters are more valnreblle (?) /likely to go out of business, then general trucking O/O ???

if fuel prices will soar up once again , well good luck for all you folks out there ...

one things is obvious , this is not the time to got into the business .





Moose.

 

[layoutshooter]

Well so far this year our numbers are better than last when we are working. Have had a series of "bad things" happen this year or we would really be up over last year. Who knows what the future may bring? It may be bad or good. If it's good, cool. If it's bad, that would suck. If I go out of business? I will do something else. I don't worry about it. I do what I can to manage my business and make all I can. That is all I can do. Layoutshooter

 

[ATeam]

one things is obvious , this is not the time to got into the business .

I would not go so far as to say that. With the economy slowing, a bunch of good folks will find themselves out of work. Some will discover and consider the expediting opportunity. If you can adapt to living and working on the road, doing somewhat profitable expediting work may be preferable to doing no work at all.

I would not dissuade someone from getting into the business if he or she has done good research, has a good plan, and has reserve funds to help them get through long layovers and unexpected down time. Reserve funds also help keep you from becoming desperate and making desperation-driven business decisions that will hurt you more than help.

In response to the article, Diane and I just had a talk. Call it a business meeting if you will. Having a broad skill set, we have other employment options. Should we park the truck for a year and wait for better times? Answer: NO!

(1) We like what we are doing. (2) Even in slow times, we would not expect other jobs to pay better than the expediting we do now. (3) Because of our debt-free status, we are running our business. It is not running us. (4) Even if we do just half as well in 2009 as we did in 2008, we will do well enough to make it worth staying in the business.

(5) If times get really, really tough, we can remodel the inside of the truck body and open a mobile palm-reading business.

 

[cheri1122]

(5) If times get really, really tough, we can remodel the inside of the truck body and open a mobile palm-reading business.

Well, that's one way to have folks lining up to give you a hand....

 

[layoutshooter]

Jan and I are going to lease our reefer truck to rich people who like to hunt and fish. We will transport thier fish and game home for them. In the off season we will ship illegal aliens. We have a real nice seat package for the cargo box. We can keep the temp at 75. We have a large screen tv to put back there too. AND two toliets!!! Layoutshooter

 

[ftp000]

Jan and I are going to lease our reefer truck to rich people who like to hunt and fish. We will transport thier fish and game home for them. In the off season we will ship illegal aliens. We have a real nice seat package for the cargo box. We can keep the temp at 75. We have a large screen tv to put back there too. AND two toliets!!! Layoutshooter

Throw in a fridge full of Corona and I'll sneak down south just to ride back with ya!

 

[Falligator]

Hmmmm....I'm stuck in Houston now...maybe I should dh down to Laredo...been stuck in Texas since Fri with no load. 1st out on the Houston/Galveston board. Let's see how long I can stay here.

 

[moose]

Thanks for sharing Phil.


let me Please ask you this :
dose Expediters are more valnreblle (?) /likely to go out of business, then general trucking O/O ???



Moose.

still wondering ...

M.

 

[nightcreacher]

Delivered Saturday in Pasadena Tx,loaded Sunday for Memphis,now loading tuesday for Wisconsin out of Memphis.sure glad I'm in an E unit

 

[ATeam]

let me Please ask you this :
dose Expediters are more valnreblle (?) /likely to go out of business, then general trucking O/O ???

Just one man's opinion here. Expedited freight transport (definitions of what exactly that is vary) is not more vunerable than general trucking owner-operators.

1. At a time where we have seen carriers of all sizes going out of business at tripple the previous rate, no expedite carrier that I know of has gone out of business.

2. Expedite carriers tend to be non-asset based, meaning they do not own and operate the trucks that haul the freight they book and dispatch. That is position a lot of asset-based trucking compaines would like to be in these days.

With expedite carriers likely to weather the storm, there will be places for expedite owner-operators to lease their trucks to. How successful each owner-operator will be will depend a great deal on the owner-operator's financial condition and business skills.

None of this means freight will be strong in 2009. It does mean, I believe, that while an expediter may encounter slow freight and tough times, the challenges will be no greater than those faced by general trucking owner-operators.

 

[moose]

Delivered Saturday in Pasadena Tx,loaded Sunday for Memphis,now loading tuesday for Wisconsin out of Memphis.sure glad I'm in an E unit

E ,
as for elephant...
Please dont forget to say hay to my Pink Elephant
@ Exit 126...




Moose.

 

[TeamCaffee]

I feel as expediters we are in a pretty good situation. We are more versatile then the big truck companies, we as being owner operators and not company trucks leave our companies more room to negotiate freight rates. The large carriers that have just company trucks are very cumbersome with high turnover rates, cost of fuel, and quality of drivers. The Expedite companies are more dependable for just in time shipments and can more easily change their business models to fit the changing economy.

2009 does not sound like it will be a banner year for anyone. We are still looking forward to the coming year though as another year not behind a desk but looking out a windshield.

 

[OntarioVanMan]

I feel the move by Fedex to restrict your being able to find your own loads has hampered an O/O 's ability to be even more flexible....Fedex best have the business to keep thier units moving or 2009 could be a disaster for some...

 

[layoutshooter]

Well OVM, one good thing about being an O/O is that we own (along with the bank) our truck. We like running with FedEx but if the time comes that that no longer suits our needs we will do something else. As to 2009, what happens will. We don't worry about what has not happened yet. We will do our best to suceed no matter what. If we don't we will suceed at something else. That is the good thing about being a hard-nosed in your face American. We will make inspite of whatever or who ever tries to stop us. We control our own destiny, not the economy or the government. Nothing or no one can stop us. Just stand back and out of the way. Shoot, might do better if I didn't own a business, just live off the land. Layoutshooter

 

[BillChaffey]

Don't worry- be happy, the Wealth may soon be spreading around. Be careful of what you wish for, you may get it.