Carriers race to the bottom

[davekc]

Is it me, or does it seem like two of the larger carriers are in a mad race to the bottom? I find it interesting that the economy and freight are picking up and some nameless carriers are cutting rates.
Some interesting info being generated out of the carrier forums.

 

[zorry]

Talked to a buddy at Landstar yesterday.
They don't want to see us putting downward pressure on the rates.

 

[LDB]

It's sad that what used to be the best of the best is nothing more than another among the rest. How long until even the brand is nothing at all? It can only ride on the past for so long.

 

[davekc]

Talked to a buddy at Landstar yesterday.
They don't want to see us putting downward pressure on the rates.

Probably will depend on whether they offer freight to the customer at a lesser rate or just pad their pockets.
As long as freight remains strong, will likely be for padding their pockets. Will have to see how my stocks do in the upcoming months.

 

[zorry]

CC is such a minor part of FedEx I doubt they influence the stock much.

I don't think I even saw CC mentioned in the last annual report. If it was, it was only a sentence or two .

 

[davekc]

CC is such a minor part of FedEx I doubt they influence the stock much.

I don't think I even saw CC mentioned in the last annual report. If it was, it was only a sentence or two .

Just looking for a bright spot.

 

[danthewolf00]

I was seeing the rates go down as a muti carrier guy and i KNOW they were cutting the rates to pad the bottm line...i mean someone was getting the fsc and it was not me.

 

[runrunner]

Greed begets more greed. Nothing seems to be enough. If Corporations can't get that growth one way,they will get it another.

 

[jjoerger]

It could be a case of mid level managers trying to impress senior management.
"Hey boss, look what I did".

 

[bubblehead]

It could be a case of mid level managers trying to impress senior management.
"Hey boss, look what I did".

From one of my earlier post; ...President and CEO of Custom Critical July 2013 FedEx Five Star Award - highest honor within the FedEx organization recognizing efforts for leadership, profitable contributions and overall quality improvement to the company. http://www.linkedin.com/pub/jason-frederick/10/158/b63 After that, focus shifts to Bill Logue and the cycle repeats. Each time, the theme follows; 'How can I best improve the division for FEDEX' not 'How I can best improve the profits to the contractors'. It is how it is IRT. When some individuals flaunted their profits, they brought much attention to those who we depend on for our contract dollars...and those dollars have been shrinking at a quicker rate because of it My opinion. If you are making good money keep it to yourself. Don't show up at your company driving a Bentley unless your company manufacturers/sells Bentleys. Don't flaunt your profits to the shipper you serve! I realize that opinions vary widely on this topic, but I really believe that the very few Sam Brannan types has ruined the industry. The Gold Rush of 1849 ? History.com Articles, Video, Pictures and Facts

 

[LDB]

How much do they spend on the 5 star lavishness? How much more could they pay per mile if all that expense were eliminated and the money put toward all the fleet? It may produce some positive benefit among the recipients, at least for the short term, but does it really help the entire fleet for the entire year? Or is it just a way for corporate folks to get a lavish vacation at no cost?

 

[bubblehead]

How much do they spend on the 5 star lavishness? How much more could they pay per mile if all that expense were eliminated and the money put toward all the fleet? It may produce some positive benefit among the recipients, at least for the short term, but does it really help the entire fleet for the entire year? Or is it just a way for corporate folks to get a lavish vacation at no cost?

Not the same 5 STAR as for Contractors....

 

[FlyingVan]

Probably will depend on whether they offer freight to the customer at a lesser rate or just pad their pockets.
As long as freight remains strong, will likely be for padding their pockets. Will have to see how my stocks do in the upcoming months.

If history repeats itself, it will be just to pad their pockets. Contractors will not see any more loads than before, the only difference they will see will be less money for the same amount of work.
I may be wrong, but this is my opinion.

 

[paullud]

Is it me, or does it seem like two of the larger carriers are in a mad race to the bottom? I find it interesting that the economy and freight are picking up and some nameless carriers are cutting rates.
Some interesting info being generated out of the carrier forums.

It's very odd. I bet they know that most contractors won't do a thing about it other than complain. If they had any sense they would get out and start filling out applications for a reputable percentage paying company. The freight market was really weird this year because the rates started moving up early and fast. I was surprised how well February went in my segment of the freight industry because usually it is horrible. The same type of runs last year were paying about 25-35% less, some brokers are just passing the money through but there are a few you have to squeeze a little.

Sent from my SCH-I535 using EO Forums mobile app

 

[layoutshooter]

All companies are in business to make money. That includes all carriers, and all contractors. Carriers look out for their bottom line, we look out for ours. We should never assume that a carrier's business plan, and our business plan, are always going to work together. It is not personal, it is business. That is just how it is. It is not going to change.

 

[Big Al]

All companies are in business to make money. That includes all carriers, and all contractors. Carriers look out for their bottom line, we look out for ours. We should never assume that a carrier's business plan, and our business plan, are always going to work together. It is not personal, it is business. That is just how it is. It is not going to change.

Problem is companies lose focus and start being stuck on stupid. They rarely do things that make sense or profit for owner operators or the company itself. I appreciated ConWay Now because they seemed to make a decision after some deliberations, I.e. when it seemed as though all companies were going to a 50 mph average. How many customers look for a company with faster shipping time? Some do but if price & speed are fairly comparable I do not believe they are major factors for most. What about 60 mph? After awhile it is burdensome for driver and unsafe. Excellant service experience seems to me as #1, and I have heard that from shippers, they set up a pecking order as who to call 1st, 2nd & so on

Sent from my SCH-i705 using EO Forums mobile app

 

[layoutshooter]

I don't make the rules. I just deal with them, until they reach a point that I can no longer deal with them, then I will leave.

 

[davekc]

Problem is companies lose focus and start being stuck on stupid. They rarely do things that make sense or profit for owner operators or the company itself. I appreciated ConWay Now because they seemed to make a decision after some deliberations, I.e. when it seemed as though all companies were going to a 50 mph average. How many customers look for a company with faster shipping time? Some do but if price & speed are fairly comparable I do not believe they are major factors for most. What about 60 mph? After awhile it is burdensome for driver and unsafe. Excellant service experience seems to me as #1, and I have heard that from shippers, they set up a pecking order as who to call 1st, 2nd & so on

Sent from my SCH-i705 using EO Forums mobile app

I think you have many carrier's motives backwards. Most look at profit long before they look at any kind of service performance.

 

[hedgehog]

Greed begets more greed. Nothing seems to be enough. If Corporations can't get that growth one way,they will get it another.

I never can understand the misplaced anger aimed at the carriers, aka corporations, etc., etc.

The drivers actually set the rates. As long as there are IOs that are willing to drive for these lower rates, they are not going to increase anytime soon.

SUPPLY AND DEMAND.

It's what fuels any business.

 

[davekc]

I never can understand the misplaced anger aimed at the carriers, aka corporations, etc., etc.

The drivers actually set the rates. As long as there are IOs that are willing to drive for these lower rates, they are not going to increase anytime soon.



SUPPLY AND DEMAND.

It's what fuels any business.

Very true. When you see a carrier send a load offer out to multiple trucks to see who will do it the cheapest, I believe you had your answer then. Some figured it out and some didn't.