Just from reading the user name was my red flag! I can count on one hand the number of members that joined EO over the years who had VENT within their user name, and tiredofsitten is one of them.
What you are about to read below was written by a very devoted and experienced young man who has been around expedite for a very long time. This guy had a dream, implemented it and the results of that dream are Expeditersonline.com, besides what better time to share this with you all than now. Please pay special attention to part #4 subparts A, B, and C.
His words not mine!
Welcome to EO and thank you for your participation.
You asked a great question. Is anyone still making money in expediting?
The answer is yes.
There is still money to be made in OTR, ground expediting. Now with that said there are a few important factors to understand.
1. Low hanging fruit
Many, many moons ago (approximately 15 years ago) there were only a few, truly qualified expedited carriers. It was a new service that was offered only by a few exclusive companies. These carriers were truly innovative and rode the wave of a new and upcoming business model in the automotive manufacturing business, it was called Just-in-Time or JIT.
As the JIT concept grew outside of the automotive arena - so did the opportunities for the carriers. For many years these few carriers (and owner operators) enjoyed triple digit growth as they were the only game in town. The carriers set the freight rates and the shippers were eager to pay "whatever it took" to get the freight to it's destination. Many of us on this forum were fortunate enough to have benefited during these earlier times when the freight was plentiful and the rates were outstanding.
That was then, this is now.
2. Everyone wants in
As the industry grew so did amount of companies who wanted their piece of the pie. It was inevitable - triple digit growth catches a lot of attention. As truckload carriers were experiencing a major downturn in freight rates - expediting was busy raising their rates.
Where would you want to be?
The first waves of new companies were from full truckload carriers starting their new expediting divisions. Then a few years after that, there was a near avalanche of smaller mom and pop operations.
For the first time in the history of the industry - expediting was getting crowded and marketplace competition kicked in. Over the last five years, expedited freight rates have fallen. One could even suggest that they were artificially too high for the marketplace, similar to what happened in the tech stocks a few years ago.
For those of us who remember the "good ole days" it is sometimes frustrating when we look at what we had and where we are now. The fact of the matter is the rules of this industry have changed. There is a great book available at Amazon.com called "WHO MOVED MY CHEESE?" that deals with the constantly changing business arena and how we should respond to the changes.
3. 9/11/2001
It is a FACT. The horrible events in NY had a devastating impact on not only our industry, but on the general economy as well. My point is this - you can't judge an entire industry based on the events of the past year. You really have to look at the entire picture to see what is going on.
4. Open Forum Comments
I love the freedom we have and I love the fact that we can speak our mind openly - even here on this forum as it pertains to our industry. There are three kinds of posters at EO:
a. Community Minded
My favorite kind of member. These people contribute with their comments, ideas and suggestions, they really offer a lot to the online community. The generally tell you like it is and are always willing to help anyone. Down right good neighbors!
b. One Hit Wonders
These folks have a simple question and want a simple answer. They make one or two posts and then they just "lurk" in the background, reading the post but not participating until they have another question. They don't generally offer help to anyone else, but that's ok.
c. Hot Flamers
These posters generally come armed and loaded! They are angry and frustrated that no one at their company could or would address their issues so they think that they will get some action by posting their grievance here in the public for everyone to see. Typically, these posters never participate on any other topic or offer anyone any help whatsoever.
They are on a mission to vent.
We see them come and go and often wonder what became of their situation. Most of these posts while they may be factual - the poster is often very distraught.
5. So where are we headed?
The rules of engagement have changed. If you operate your business expecting 1985 - 1999 rates and freight you will not survive. Your business plan has to be smart. You must prepare for long stretches of slow times. You must be truly independent minded, if you depend on the carrier to solve all your issues, you are headed for a big disappointment.
Rich M. has a great business plan and has proved over the many years in this industry that you can be successful - but you have to plan it that way. As the saying goes. Failure to plan is planning for failure.
Those are my thoughts and the way I see it.
We wish you well!
Lawrence
Expediters Online.com
-----------------------------------------
Accept that some days you're the pigeon,
and some days you're the statue.
-----------------------------------------
Every member and guest who just read the above quote written by Lawrence should learn something even those who are here to vent.