Carriers race to the bottom

[layoutshooter]

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.

Most people realize what is going on. The problem is that often the news "leaks" out and rumors are allowed to fester. The other problem is that these "adjustments" to contracts are coming at a pretty good clip now. One can only get kicked in the butt so many times before one gets a little "punchy". Also, any GOOD O/O knows that what we are seeing is bad for their business, and in the long run, bad for the carrier and expediting in general.

I feel for those who have ordered trucks, based on a system that no longer is in effect. I know I am feeling better about holding off on placing an order. It would seem prudent at this point to take a "wait and see" attitude for the time being.

 

[Daffyduck528]

Most people realize what is going on. The problem is that often the news "leaks" out and rumors are allowed to fester. The other problem is that these "adjustments" to contracts are coming at a pretty good clip now. One can only get kicked in the butt so many times before one gets a little "punchy". Also, any GOOD O/O knows that what we are seeing is bad for their business, and in the long run, bad for the carrier and expediting in general.

I feel for those who have ordered trucks, based on a system that no longer is in effect. I know I am feeling better about holding off on placing an order. It would seem prudent at this point to take a "wait and see" attitude for the time being.

I think fedex will see this doesn't improve the problem of getting the little inexpensive loads covered. However, it will have the effect of showing them that while this didn't fix the problem they are still saving a ton of money. I fear they'll keep this change and add a little more to it. Until enough contractors leave and they are forced to loosen up in order to re-attract contractors. Or they'll just buy their own trucks and have employees.

 

[KickStarter6]

I was thinking of switching over to CC until I heard the news of the rate drops. I was interested in the extra 10 cents a mile, but now I don't believe I will.

 

[OntarioVanMan]

Its a shame the large carriers that try to blame the multi carrier runners for the down pressure in rates ....that i these very same carriers, will support the multi by selling them loads....and in fact keeping them in business...so crocodile tears...

 

[xiggi]

Who says they are charging any less to customers? Just my guess it has more to do with profits

Sent from my - Fisher Price ABC - 123

 

[OntarioVanMan]

Who says they are charging any less to customers? Just my guess it has more to do with profits

Sent from my - Fisher Price ABC - 123

MOST bigger carriers IMO use the multi's to a certain extent to service customers, It is just business and customers MUST be served.... guess it depends on which carriers are using multi's as a profit center as to actually a means to service a customer.

 

[Big Al]

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

Maybe I didn't say that clear. Service performance I was talking about the customer. I agree that almost all carriers are way too involved with profit from the basic standpoint that they ignore all other aspects, I.e. look at retailing, compare Sears from the 50s & 60s yes they saved on payroll; however, they ended up with a destroyed reputation.. my emphasis was that carriers should place greater importance on the customer service vice all on profits

Sent from my SCH-i705 using EO Forums mobile app

 

[xiggi]

I think many shippers realize good service can be had in a shiney new truck or an older cheaper one with a little rust.

Sent from my - Fisher Price ABC - 123

 

[zorry]

Service has more to do with people than equipment.

Happy people are productive people.

 

[OntarioVanMan]

agreed.........

 

[zorry]

I think many shippers realize good service can be had in a shiney new truck or an older cheaper one with a little rust.

Sent from my - Fisher Price ABC - 123

Spoken like a true $printer driver !

They understand rust.

 

[OntarioVanMan]

Spoken like a true $printer driver !

They understand rust.

as do a lot of straights right now too...so there....poke

 

[tenntrucker]

sent from my Galaxy Tab2

 

[davekc]

Service has more to do with people than equipment.

Happy people are productive people.

Sure. Many nameless carriers are all for quality service if they can get it for free. If not, you wouldn't have the goofy stuff going on you see now. Same with the multi's. If carriers can get something covered cheaper, they will in many instances do it whether they have trucks available or not. As for rates to the customer, they have ticked up. Latest Sylectus report indicates that looking across numerous carriers.
But like many, the bean counters in many carriers look to increase their profits on the back of operators only to later move their savings to recruiting costs because they can't figure out why their fleet is shrinking. Just baffles the mind sometimes.

 

[zorry]

Like someone mentioned, if Julio goes out and buys a $20,000 tractor and agrees to pull a company trl and they put him in the Supreme Service Division from day one, just how "Superior" can the service be ?

To pay .05 pm to do Elite stuff is kind of a slap in the face.

 

[xiggi]

I don't know zorry I've seen drivers out here with three months experience that I would trust way more than some I've met with years of experience.

Sent from my - Fisher Price ABC - 123

 

[jamom123]

Like someone mentioned, if Julio goes out and buys a $20,000 tractor and agrees to pull a company trl and they put him in the Supreme Service Division from day one, just how "Superior" can the service be ?

To pay .05 pm to do Elite stuff is kind of a slap in the face.

Zorry, your giving way too much credit to julio his tractor only cost $5,000.

Sent from my SCH-I510 using EO Forums mobile app

 

[zorry]

Heard of a new E driver that loaded his first expedite load. A Sat delivery to a place he'd delivered to numerous times hauling general freight.
That place doesn't receive Sat or Sun he thought as he parked his loaded truck for the weekend.
When he arrived Mon am for delivery he thought the company would be proud.
They fired him for not answering his phone all weekend.

 

[Doggie Daddy]

as do a lot of straights right now too...so there....poke

You misspelled puke.

Sent from my SCH-I545 using EO Forums mobile app

 

[Daffyduck528]

Like someone mentioned, if Julio goes out and buys a $20,000 tractor and agrees to pull a company trl and they put him in the Supreme Service Division from day one, just how "Superior" can the service be ?

To pay .05 pm to do Elite stuff is kind of a slap in the face.

Hey on 1,000 miles that adds up! That's $50 towards the $10,000 lift gate you bought. And the $2,000 in freight handling equipment you bought and maintain. All you need to do is run 240 loads to pay that off with and be careful you don't loose or break anything in the mean time. After that you can start earning a profit on those tools you bought. And forget about the labor to use said items. You should work for free. After all your just a driver. (Sarcasm implied)