How Dependant is Expediting?

[RobA]

on automotive runs?
I am reading in my morning paper that both Ford and GM will be closing plants in the near future.
Quote:
Ford needs to slash production by ONE MILLION VEHICLES and GM by 750,000 said Sean McAlinden, director of the econmics and business group the CENTER FOR AUTOMOTIVE RESEARCH.
He identified Ford plants in:
St Louis Mo
Wixom Mich
St. Paul Mn
and Cuautitlan Mexico as candidates for closure.
Ford will close the Windsor engine plant in 2007.
The GM plant in Doraville GA plus another van/SUV plant are on his list as well.

With the auto parts companies crumbling too; how many trucking jobs will disappear as a result?

 

[tiredofsittn]

good subject, i heard gm was going to make parts in china and then fly them over here.

 

[greg334]

>good subject, i heard gm was going to make parts in china
>and then fly them over here.

They already do this for a few things. It is cheaper for them to have a plane load of parts shipped here than to have parts made here in the US and shipped by truck. The bean counters use the McNamara theory, saving ten cents adds up.

But what I find really disturbing is GM’s announcement that they will increase production on some of their trucks (Hummer H3, Chevrolet Colorado and GMC Canyon), even though there is a glut of trucks on the market and the people are actually looking at more economical vehicles (look at VW and Toyota’s sales) because of the $2 per gallon gas prices.

 

[davekc]

My opinion is that expediting will remain the same, only the customers are different.You of course still have the big 3, but numerous expedite loads are now going to Toyota, Nissan and Honda.
That trend will continue until the big three start to reinvest in fuel efficient cars.
They are starting (big 3), but it will take several years. They are still trying to dump all their SUV's
Shortage of drivers equals shortage of trucks. That continues to create an additional market. Many brokered LTL loads are sitting and eventually after a period of time, they turn into LTL loads with expedite rates. Seeing more and more of it these days.
Just my take

Davekc

 

[Tennesseahawk]

There's been tons coming out of Michigan this week. I've never seen so many loads from Detroit. Of course, I'm in SC right now.

My last two loads were diesel parts and engines, but I'm still seeing my share of auto freight. I wouldn't be worried yet. And it depends on how much your company depends on NLM. Remember in orientation when they told you we do about X% in auto? I'd probably add 20% to that to get the real #. Panther does diversify more than the others tho. Some just stare at the NLM boards, and I think that's too dependant.

Dave... how much did Panther say they did in auto? Was it 15% or close to that? We got closer to 25% with them.

Now, A.Blair, on the other hand, relies very heavily on NLM. If and when the automotive sector takes a nosedive, ol' Tom Robertson will be diggin in the trenches to find scraps.

 

[tiredofsittn]

i have done this 4 years now and i think its the worst i have seen. it has went downhill since the day i started.i was born to late.i can just picture the good ole days, low fuel rates, higher freight rates, not as many people and companies out here fighting over the junk driving down the rates, every week i see a new kid on the block. the thrill is gone.it just aint no fun anymore.

 

[highway star]

When talking about percentage of auto freight, you need to know how your company defines it. Some will say a load from one supplier to another isn't auto because it did'nt involve a major plant. That can make the percentage look more attractive. And yes, too much dependence on NLM is NOT cool!

A funny story about the term "freight": I was going into Canada through Sarnia with a double about a month ago. I handed the lady my FAST card and my cards for GM and Honda. See looked puzzled. I told her I had freight for GM in Oshawa and also Honda in Alliston. She looked at me even more puzzled and said, "freight?" I said yes. She said, "Oh, you mean auto parts". I said yes. It then made sense to her. She scanned my cards and I was on my way.