Evolution or Revolution

[davekc]

RE: Your Competitors RE: Evolution or Revolution

I have watched and seen how individuals publicly boast about the revenue stream that they constantly earn. Well,while some of these individuals believe that the vast majority of us are 5th grade Neanderthals that are not capable of thinking,they are wrong. So what happens is that smaller carriers without the large overhead go after the freight that is publicly boasted about thus reducing the pie for all
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These ideals and posts are from the inexperienced that haven't yet realized how the industry works. As mentioned, there is no part of expediting that is immune from competition.
Having certain vehicle types is only as good until your competition has it. Looking at any load board will tell you that rates are declining on these types of loads unless it is a stepdeck or flatbed load. Again, not really a huge secret.










Davekc
owner
22 years
PantherII
EO moderator

 

[Vinnie T]

RE: Your Competitors RE: Evolution or Revolution

Competition has kept the rates the same the last 5-7 years, maybe even going down a bit as operating expenses shoot up. Why?? I believe since the bigger companies have gone the the internet bidding format and putting out frieght to be viewed by hundreds of carriers at one time...this has increased the profit margins for the brokers, lowered them for the small to medium carriers.

 

[davekc]

RE: Your Competitors RE: Evolution or Revolution

In most respects you are correct. All of the larger contracts are essentially covered by the larger companies. The loads they can't cover or they deem unprofitable is what they throw out on their boards. Some are decent, and some aren't.
Short of the reasons I mentioned, there is little reason a carrier would throw out to other carriers, their gravy runs.







Davekc
owner
22 years
PantherII
EO moderator

 

[greg334]

RE: Your Competitors RE: Evolution or Revolution

Just a thought or two;

First thought

Phil you still need to come down to earth, if FedEx decided tomorrow to close down CC, it will not effect them. Even though there is a lot of potential to generate revenue, they are for all intent and purpose a big corporation and think a lot differently than what is considered normal or logical. Believe me with that big pharma company I worked for there were a lot of decisions to stop/eliminate/suspend profitable operations without making much sense.

Being dependent 100% or even 60% on any company with an expenditure that is more than you may have in reserve in my opinion is not a prudent thing to do. Not to beat Phil up, I don’t know his financial situation so there are a lot of assumptions on my part.

FedEx a rising star? That is a matter of opinion. I would say more like a heavy weight in the world of shipping, more so than Panther and most other carriers ever thought and may never reach. The fact, as I said before, is that they have the brand, the reputation and the money that could all be used to make it really difficult for other carriers to compete. They do have the reserves to undercut the competition at the same time paying the contractor a fair price for their services to simply eliminate or reign in the competition.

Second thought

Evolving? Yes I would say it is always evolving. The times change and so do business practices and needs. But with that in mind on the horizon maybe lurking rail service for some of the freight being moved by truck to adapt to the needs of business. I think that the evolution of the industry as a whole will go back to what the concept of rail/truck transport actually was in the 30’s and the use of JIT and emergency freight will be adjusted to their needs. I read somewhere about how some of these companies are determining where to locate and amazingly rail access is on list of things to have during site selection. Oh the reason for the shift back to rail? Cost of fuel and the environment.

Maybe I am missing the point of the thread; I really don’t care to tell you the truth. If FedEx CC shut down tomorrow or the customers all decide never to ship anything via an expediter, I will survive. Unlike a few who have a fortune in their trucks, I can take my $10K truck and use it for something else and make some money to pay the bills.

 

[davekc]

RE: Your Competitors RE: Evolution or Revolution

As far as I'm concerned, any company is up for grabs. That includes Panther or Fedex. CC situation isn't far off from the Conway circumstances. Panther would be an attractive buy for UPS or DHL.
Bottom line as Gregg said, "don't put all your eggs in one basket"
History has a way of repeating itself.
Myself and others will be the ones standing at the auction block buying these trucks for pennies on the dollar.
If one is lucky, those long flowery self promotional pieces that are occassionally written, just might be enough to get one a bus ticket home.






Davekc
owner
22 years
PantherII
EO moderator