And......good morning. Well I came home last night and flipped open my EO app in bed around 140 and was like ok. Decided I would wait till this morning to enter the fray. That and my thumbs would have fallen off trying to respond off of my phone. A little of good points and perspectives here.
1) It is true years ago Load One having a large sprinter fleet was a competitive advantage in many ways. For both sales and equipment and loading versatility. Yes, today the larger vehicle has become much more mainstream and with the mfg's shifting production and model types I think it will be what is considered the "norm" of vans within a few years. As that market supply and demand changes so do the dynamics of rates and freight. Exactly the same scenario; just a few years ago we were one of the few carriers that had 53ft air ride curtain side trailers. Now they are FAR more common and the supply demand market has shifted accordingly.
2) Am I a fan of the idea of adding cargo vans...personally no I am not.
3) What is a "sprinter type unit" in my opinion? It is a large cargo van that represents more loading opportunities. More opportunities generally represents more money on
average and the ability to move more often. In a way it is like the driver with hazmat or that can run Canada....more opportunities. Back to my curtain side trailer scenario for a minute. Years ago we started paying extra to mount the curtains on the outside and have the curtain system built a few inches taller to be full 13ft 6 (believe it or not that is not the standard on those). Why did we spend this money and customize? Some loads need this space, supply is low and thus a higher rate. Now 95% of the loads they haul, don't need this extra space and customers simply won't pay for what they don't need.
4) Generally dispatch and sales is struggling with customer direct freight at cargo van tariff rates. Customers expect us to handle straight trucks, sprinters and cargo van loads. Not just two out of three or what happens..... we lose the customer or get moved down the list and offered the opportunities as number 3, 4 or 5 versus 1st or 2nd. Backhaul or bid board freight is a different story. That is really supply/demand rate driven and honestly it is what it is, the market forces are the majority of the control there. Yes, we may ask what a truck will run for and yes we may not choose to go that low. It really gives us a bottom line number. We are still going to bid based on a lot more data than that single number. The job of bid team is far more complicate than what most would realize. Most people don't fully understand or appreciate the nuances or aspects of someone else's job. Just as their is much more to what you guys do then most of us would fully realize.
5) The reality of tariff cargo van rates and fuel at Load One....generally equal too what most other carriers pay their sprinters on the per mile plans. Now add in layover and other perks..... While some will comment about sitting the last month I fully understand that. On a big picture the "waiting list" has honestly never been longer and our phones are lit up with drivers at other carriers calling and telling us about their struggles. Yes some carriers out there move in and out around you. If you wanted too and could run for those rates all the time, honestly you would be signed on there and that is the bottom line. I could drop all our rates across the board 10 to 25 percent like some of our so called "competitors". I could drop our pay plan to protect the company side of the p&l and just run the wheels off you guys. Honestly today we are one of the very few left on percentage pay. Why did so many of the other carriers change away from it? To benefit their fleets or their companies???? Out of the few paying percentage the one I know is 62% of
I think but am not sure 95% of the linehaul. Run those numbers and it is a good 10% below our pay (without layover and extras). I am not sure of Landstar Express America's pay plan but I believe they are % pay, I just don't know the structure or numbers so I can't comment other then I have talked to drivers that moved here from others.
Every load is not a home run, like I have said many times. Sometimes you get a double and some times it is a bunt. But at the end of the game it is all about the final score or the "average". When I listen too, "I talked to this guy and they are running him at his carrier while we are slow" I just would love to say..."Did you ask him if he has already called to get his name on the list as he is going broke?".
6) Sales. Yes, I have to appease more than just my beloved fleet, lol. We go after the best sales people in the industry. They are often paid in part on performance. They work hard to sell accounts. When they see loads we miss because a sprinter won't run at cargo van tariff they are beating me up and rightfully so. Part of my job is to make sure that we have a fleet that can properly support the sales team and the customers. We are also struggling and will have confront the question of having expedite tractor trailer teams in the fleet I am sure soon. As this is another issue that keeps slowly creeping in.
7) God Bless America and hey how is everyone doing this morning?
8) I love this company, our people and my fleet. I think the company changes and grows. But we have worked VERY hard to not change our founding principles. But everyone needs to help change and adapt to market and customers needs. Yes, I ask for a lot of trust out of my fleet. But unlike other companies I think I have shown my ways and hopefully continue to earn your trust everyday. So many were worried when changes have come over the years and to what end? How many in the fleet were panicked when I appointed a president???? Whatever changes and happens is ultimately on me good or bad. I am not changing. Granted the car went from black to silver to appease my family after 6 black ones, but my butt is still sitting at Isis
