Five Fantastic Years!

ATeam

Senior Member
Retired Expediter
Five years ago this week, Diane and I, having never driven a truck before, left our white-collar professions and moved into a fleet owner's truck to begin our career as expediters. While there have been setbacks along the way — some quite serious — we have had more fun, made more money and made more new friends than we dared hope when we first began.

We began with five goals in mind: (1) increase our income, (2) spend more time together, (3) simplify our lives, (4) share a business project and (5) see the country. All have been and continue to be achieved.

Along the way, and no longer needing or wanting them, we sold our house, cars and most belongings. We became debt-free, increased our net worth, refined our expectations, and set more-specific financial goals. Today, we are owner-operators; driving a paid-for, custom-built straight truck. It runs like a top and rides like a dream. Its floor plan and features are perfect for our chosen style of life and work.

There is nothing we would rather be than the expediters we are today. We plan to drive as long as our health allows and retire into a comfortable and financially-secure lifestyle. Getting into expediting was the best career decision we ever made. We love it out here and would feel richly blessed to still be driving at age 70.

No expediter succeeds alone. Along the way, we have enjoyed support from our carrier, shippers, consignees, fleet owners, vendors, trade organizations, publishers, church, family and friends. The trucker friends we meet on the road have been especially helpful, as have supportive friends in the ExpeditersOnline community.

This support shows up in numerous ways; including the business opportunity our carrier provides, anonymous voices on the CB telling of road hazards ahead, friendly telephone conversations and meal visits with other expediters, dispatchers helping us through loads, CPAs and business service providers helping us understand the business, first responders standing ready to come to our aid if the need arises, insurance and financial companies that help us manage risk and build wealth, trade publications sharing useful information, competitive events that sharpen skills, e-mail alerts making it easy to know the issues and communicate with elected officials, mechanics keeping the truck in good repair, and EO Open Forum members sharing product information, constructive debate and meaningful conversation.

More than any carrier or organization, the EO community enables us to feel more plugged into and a part of the expediting world than we otherwise would. Wherever we may be in the country, EO means we are never more than a mouse click away from the friends and expediter colleagues we have come to know online and on the road.

Expediting has been and continues to be a great ride for Diane and me. We are grateful to and thank everyone who help make it happen. :)
 

chefdennis

Veteran Expediter
Congrats on your anniversary! Your posts were and continue to be a source of guidence for me when I decided to get into this business. While I do have extensive business experience as the owner of several ongoing businesses and more then a few failed ones also, I figured i would be ok in this business also. But as i read post here and particularly some of those by you and diane, I found the need for more reserach to fortify my general business experience with the info shard here my you and others.

So thanks for all that you have provided, and continue to provide to all of us here.

As I said, congrats and I hope to meet you and dinae face to face some day!

Chef Dennis
 

hondaking38

Veteran Expediter
congrats on your successes,, as you have pointed out, success doesnt always mean monetary rewards...it can mean time with your loved one, seeing the country, having your independence , everyones success in life is different, and i am glad to hear that you have succeeded,,,,,,,(now only if i could get my wife to become a driver lol)
 

theBeemer

Not a Member
congrats on your successes,, as you have pointed out, success doesnt always mean monetary rewards...it can mean time with your loved one, seeing the country, having your independence , everyones success in life is different, and i am glad to hear that you have succeeded,,,,,,,(now only if i could get my wife to become a driver lol)

Brother that beautiful woman would have to put up with you every day then. She never did anything that bad to have to go through that......
 

TeamCaffee

Administrator
Staff member
Owner/Operator
Congrats also A Team! We also believe that Expediting is the greatest form of trucking!
May we all be our here safe and sound another five years!
 

Lawrence

Founder
Staff member
Phil,

Best wishes on your 5 Year Anniversary and thanks for returning some of the knowledge you have learned back to the EO Community and our Expedite NOW Magazine readers - currently at over 44,800 readers!!!
 

ericmoss37

Seasoned Expediter
I bet your only regret is that you did not got in the truck sooner. I know you own your truck and all and your expenses are down. How is business now compared to five years ago?
 

juliewray60

Not a Member
Five years is somthing to be proud
of. To have survived that period
of time speaks volumes about ones
character. You listened,learned and
prospered. I have a feeling youd be
successfull in most any endeavor.

As wer'e both into our sixth
year of service, lets hope and pray
for another repeat of the past five.
So far, it's been one great ride !
 

aristotle

Veteran Expediter
Congrats ATeam. Phil, I always learn something from your posts on EO. Information and knowledge are power. Thanks for sharing your knowledge with us. We are all the better for it.
 

ATeam

Senior Member
Retired Expediter
How is business now compared to five years ago?
Your question got Diane and me to thinking. The following is not a well-researched list. It is a list -- off the top of our heads -- of changes we have seen since 2003, when we entered the business. It lists changed items only, and not our opinion of them. Perhaps other forum members can add changed items we missed.

Changes at FedEx Custom Critical

- Gross revenue per mile has increased (effect of all revenue sources combined; surcharge, tariff, accessorials, etc.) (Not all contractors agree with this statement, but it is true for us based on objectively-verifiable truck stats and revenue numbers.)

- Fuel surcharge came widely into effect

- New contract changes fuel surcharge arrangement

- Tolls are now paid on many loads

- Qualcomm fees went from $25.00 to $30.00 per month

- Bill of Lading language changes (several times)

- FedEx Custom Critical now part of FedEx Freight

- Expedited Freight Services introduced

- Contractor settlement statements now easier to read

- New class of freight introduced (TVAL)

- Multiple changes in TVAL rules and required equipment as the category evolved.

- Change from Comdata to T-Chek fuel cards

- Limit on number of trucks per fleet owner dropped or eased

- Number of B-units in the fleet is capped

- Multiple reorganizations of departments, job descriptions, and teams, and then reorganized again.

- Personnel changes (retirements, promotions, etc. and new CEO)

- New jargon (load offers now load opportunities, available trucks now candidates)

- There is a waiting list to get into White Glove that was not there before.

- Social security numbers removed from company ID's

Dispatch practices at FedEx Custom Critical

- Load offers include more information than they did before (pay breakdown).

- Bubble-up rule went away (at home, must wait a day before going into service)

- Penalties for deadheading to an unauthorized express center went away.

- Load offer alerts now available by text message

Economy

- Fuel price rose from $1.25 per gallon to $4.00+

- Expansion then, recession now (or slowdown, depending on your point of view).

- U.S. automotive industry (a large source of expedited freight) posted massive losses and shutters plants

Industry, Expediting


- Trend toward one-call solution telephone number for customers

- Increase in number of carriers, especially smaller carriers

- Con-Way NOW exits industry (acquired by Panther)

- Panther further develops Elite Services and reefer business

- GPSNet Technologies emerges and networks 3,000 small-carrier trucks to provide national reach.

Industry, Trucking


- Costs have increased (equipment, fuel, tolls, insurance, tires, etc.)

- Truck sales fluctuate wildly due to emissions-related pre-buys

- New truck prices increased

- Used truck prices plunge on over-supply of less-fuel-efficient trucks

- Trucking companies trend toward opening in-house freight brokerage components

- The trucking industry contacted. Thousands of owner operators and hundreds of carriers that were in business five years ago have gone out of business now.

- Truck driver shortage eases with fewer trucks on the road

Life on the Road


- Long waits are more frequent at U.S./Canada border

- Less personal deadhead due to high fuel costs

- Indiana accept EZ-Pass

- Open road tolling in Chicago

- Truck speed limit changes (some faster in Indiana, some slower in Tennessee)

Life at Home


- Home values have stagnated or decreased (depending on the area)

- Costs have increased (utilities, materials, supplies, household goods, etc.)

Technology


- Better cell phone signals

- Better internet access

- GPS now commonly used in trucks

Truck stops


- Shower prices increased from $7.00 to $10.00 (roughly)

- Shower points on loyalty cards expire sooner

- More big-chain truck stops, fewer privately-owned truck stops

- Fast food restaurants displace some sit-down restaurants

- Idleaire went from a promising anti-idle service to under-used and bankrupt company (still operating, recently sold).

- ULSD fuel comes to all states

- TA buys Petro

Infrastructure


- Minnesota bridge collapse raises "structurally deficient" awareness

- Congestion eases as number of trucks on the road decrease and people drive less because of rising fuel prices

Regulatory


- Anti-idling laws spread nationwide

- 2007 and 2010 emissions laws affect equipment

- Hours of service rules changed and changed again

- HAZMAT background checks and fingerprinting now required for HAZMAT endorsement on CDL

- IAC credentials required for airport freight

- Evolving border-crossing regs (A8A, FAST, PAPS, PARS, passports, etc.)

- California levels steep fines for not having required engine stickers

- California levels steep fines for idling

- California now requires locks on truck doors

- FDA rules give rise to TVAL freight

- Tire chain rules made more stringent in Colorado

Equipment

- Hino trucks re-entered the expediter market

- CAT announces exit from on-highway truck engine market

- Sleeper size of "standard" expediter truck increases

- Generators more commonly used on trucks

- Fuel economy now trumps many other truck spec items

- Wide-single ("Super Singles) tires appear on trucks

ExpeditersOnline and Expedite NOW

- EO rises from one booth at the Mid-America Trucking Show (Louisville truck show), to operator of over 10,000 square feet and the Expediter Experience, which showcases everything expedite.

- Expedite Expo trade show moves from Detroiter truck stop in Michigan to Roberts Convention Center in Ohio, becomes one of the trucking industry's major trade shows.

- Open Forum membership nears 9,000

- Expedite NOW readers top 40,000

- Numerous Expediter Workshops held in various locations
 
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moose

Veteran Expediter
Congads. Ateam for your anniversary ,success , and the reach of your set goals.
EO will not be the same without you 2.
in you posts you always show a strong sign of stability , and if i may say , a Conservative look on the business side .
as you probebly know by now , i was "pushed" into Expedite , and in many ways represent a more adventures attitude toward trucking , witch will , i guess, lead to many more helpful debate in the future , for all to learn and enjoy from.
as i was searching the site prior to buying into the St. truck ,i took an spacial look into your pasts posts ,IT HELP ME A LOT ,on my decision and i thank you , and others ,for that .
EO is an important tool of useful information, and the Athem are leading the way, and are deserved for the screen name.
i only wish more O/O will be as successful as you .
Hope to meet it person some day.
Thanks.



Moose.
 

MCBuggyCo

Seasoned Expediter
Thanks for listing the changes over the years. I have only been expediting since October so it is very educational to see how things were compared to how they are now. Could you please now give us a look 5 years into the future? :)
 

ericmoss37

Seasoned Expediter
Ha ha, that took hours to complile. Thanks for the great effort. I was more refering to the industry as in loaded miles for teams. I understand that they boosted pay and fuel supplements to match the cost of doing business. I was more refering to loaded miles. For example three years ago you might have averaged 4000 miles a week as a team. Now the rates might be higher, but you maybe averaging only 2500 miles and making less money.
 

ATeam

Senior Member
Retired Expediter
Thanks for listing the changes over the years. I have only been expediting since October so it is very educational to see how things were compared to how they are now. Could you please now give us a look 5 years into the future? :)

Looking five years into the future, there is bad news and good news. The good news, for Diane and me personally, is we will be in fat city. Provided that we suffer no health or accident setbacks, we expect to build financial assets at a greater rate than we did in the previous five years.

That is because in our first three years, roughly 40% of the gross revenue we generated went to fleet owners. Now that 40% goes to us. Instead of financing our next truck and paying interest on a truck loan, we are saving money toward paying cash for our next truck and earning interest on the savings. We are also benefiting and will continue to benefit from certain fuel-economy improvements we have made.

(Note to newbies: Do not take this as a recommendation to buy a truck starting out. I continue to maintain that starting in a fleet owner's truck is the better way.)

The bad news is general economic conditions and industry conditions are not as favorable today as they were five years ago.

In a post on 9/2/07, I said, "On August 31, top-level economic policy makers attended a symposium in Jackson Hole, Wyoming. I have been reading the full texts of speeches given there. They leave me with no doubt that a recession is coming, and it could be severe."

Well, one year later, the credit crisis that has since happened, and that experts said would go away, has not gone away. Contrary to certain optimistic experts speaking today, I believe that the credit crisis has only just begun.

Now cut off from the previously easy-credit home-equity loans and rising home values, many consumers are using credit cards to stay afloat. But with banks needing to firm up their balance sheets, that source of credit will tighten too.

Mortgage defaults and foreclosures will increase, home values will continue to decline, and credit card rules will be tightened as banks struggle to get out from under bad consumer debt. That will tighten consumer spending, which will hurt business, which will prompt layoffs, which will further reduce consumer spending ... and so it will go until the credit excesses of the past are wrung out of the system.

Optimists will point to the occasional bright spot as this major economic snowball rolls along for the next year or two or three. While the bright spots will certainly be there, they will be the exception, not the rule.

I'm keeping my eye on the snowball. The snowball will eventually melt away, but not before a whole lot of people, including some very smart financial experts, are crushed under its weight.

We will soon see the FDIC closing and bailing out more banks. And we may even see the taxpayers bailing out the FDIC.

When the Federal Reserve Bank stepped in to keep Bear Stearns from totally collapsing, do you remember the assurances Bear Stearns officials gave, just days before, about its financial strength? When the FDIC seized the failed IndyMac Bank, do you remember bank officials saying, just days before, how strong IndyMac was? As the bloom came off the rose at Fannie Mae and Freddie Mac and their stocks declined over 80% in value, and as the federal government positions itself to rescue those companies, do you hear today Fannie and Freddie officals talk about how strong their companies are? Do you believe them?

The IndyMac Bank failure -- the second-largest bank failure in U.S. History -- took $4 - $8 billion out of the FDIC's $52 billion asset pool. The FDIC will try to recover that by raising the fees it charges healthy banks, which will strain those banks further. When asked how strong the FDIC is, FDIC officials offer assurances. Do you believe them?

I don't. With my eye on the snowball, those assurances provide more concern than relief.

Again, the credit crisis has not gone away. It is only just beginning. Until the credit crisis resolves itself, general economic conditions and industry conditions will not be as good as they were in the last five years.

Expediters who embrace a debt-free lifestyle and have well-considered business plans have less to fear from the snowball than those who do not.
 
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Broompilot

Veteran Expediter
(Note to newbies: Do not take this as a recommendation to buy a truck starting out. I continue to maintain that starting in a fleet owner's truck is the better way.)

Dissagree, if you have the $ to buy ones own truck than NEVER WORK FOR ANYONE, solid busines plan, to give 40% is just to much to GIVE AWAY. Talk about a SELF IMPOSED TAX, WOW. Now thats bigger than the IRS cut from taking $ out of an IRA, or 401.

Congrats on your success and five years in the Business .
 
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