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January 2016 locations

davekc

davekc

Senior Moderator
Staff member
Fleet Owner
OntarioVanMan said:
and just why is that Dave in your opinion....why did they sell their unit and drive for a fleet?
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As I said, the exposure is higher with smaller per vehicle margins. So in laymans terms, with stagnant or lower rates, and higher costs, any event whether health, accident, breakdown, you name it, can put them under. When just looking at single truck operators, I would say for every ten trucks out there, seven to eight are undercapitalized. I believe I saw that figure last year in a financial report either from GE Capital or Wells Fargo.
 
OntarioVanMan

OntarioVanMan

Retired Expediter
Owner/Operator
davekc said:
As I said, the exposure is higher with smaller per vehicle margins. So in laymans terms, with stagnant or lower rates, and higher costs, any event whether health, accident, breakdown, you name it, can put them under. When just looking at single truck operators, I would say for every ten trucks out there, seven to eight are undercapitalized. I believe I saw that figure last year in a financial report either from GE Capital or Wells Fargo.
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so its a better market for fleet owners at this time....as well as carriers that have a secondary income as well...
 
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davekc

davekc

Senior Moderator
Staff member
Fleet Owner
OntarioVanMan said:
so its a better market for fleet owners at this time....as well as carriers that have a secondary income as well...
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Depends. If they are established and don't have their whole operation leveraged, then they are in good shape. If they borrowed heavy and or have everything financed, that might not be good if there is a downturn that is lengthy. Over the past 12 months we have seen carriers crash, and that right there is the biggest issue.Interest rates are lower but means little when the actual cost of capital is higher. Never truer today than 15 years ago I was preaching "cash is king" on here. Same fundamentals are still true. Stole that from page one of Dave Ramsey back then.
 
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NorthernBill

NorthernBill

Veteran Expediter
Owner/Operator
Tried to pull into the Pilot just across the AL line from Alanta on I-20. Cop directing traffic getting into parking lot. No, not any incident, Power Ball ticket buyers! Not one parking spot open, good sized place to.
Off to a slow start so far this year, couple of so so southern loads. One four stopper, Alabama Tide tee shirts, glad they won.
No complaints with the weather, but would like to get on a roll.
 
fastman_1

fastman_1

Veteran Expediter
Owner/Operator
TDave said:
That sucks was empty in Cincy picking up tonight in Wilmington OH going over to GM in Tonawanda NY. Again trying to go south and that cat not being to cooperative lol I guess I'll just go where the loads take me :)
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Gotta do what ya gotta do, so far I've been on vacation this week.
 
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