Large Carrier vs. Small Carrier: Thoughts?

[ATeam]

You mean that a large carrier has a reach that a smaller carrier doesn't? No offense, but it must have been the recruiter that sold you that. My reach extends across upwards of 9000 pieces of equipment, if need be. Hundreds of agents as well. Now that's nationwide coverage.

I'm not sure I get your meaning. Diane and I don't ship freight, we haul it. We don't drive 9,000 pieces of equipment. We drive just one. By national reach I mean our carrier has freight that takes us everywhere in the country.

We have been surprised and delighted many times by the exotic places we have driven to pick up or deliver the freight our carrier puts on our truck. Examples include nine miles deep into a national forest on logging roads, into a cave in which we drove a half-mile or more, onto piers at sea ports, into hangers at international airports, onto airport tarmacs where we loaded directly to or from planes, wind farms on mountain tops, ocean-side marinas, open pit mines, mountain ski resort towns, ocean beach resort towns, casinos, museums, downtown areas among the skyscrapers in many cities, convention centers where interesting events are in progress, and deep into restricted areas where tourists will never go.

In our first 12 months as expediters we made it into 48 states and two Canadian provinces. We have since been in every major city in the U.S., on almost every mile of every one-digit or two-digit interstate highway in the U.S. (I-5, I-8, I-35, I-99, etc), and on more stretches of federal, state and local roads than we can remember -- everything from endless stretches of prairie freeway to winding, one-lane gravel roads through mountain terrain.

Some of the routes provide fascinating surprises beyond the scenery OTR truckers typically rave about, like the ocean ferry ride we once took, shown below.

I write this from our present parking place which is in sight of the Saint Louis Gateway Arch (also pictured below). Dispatched for a Monday pickup, we are laid over here for the weekend and are within walking distance of the commuter train that can take us into town's attractions.

That's what I mean when I say national reach. It's hard to imagine seeing more of the country in more interesting ways than we have as straight-truck expediters with FedEx Custom Critical. This carrier has a wide variety of interesting freight and interesting customers in interesting places.

 

[nightcreacher]

As an expediter I have been in 48 states, and Canada,of which, most of it was with a larger carrier.In the 26 years as an expediter,Ive been with 2 smaller companies,and 1 large.THe advantages of the larger one,you are more able to see the whole country, if thats what you resally want to do.That doesn't mean your going to make more money,just be able to go more places.The disadvantage of a smaller company,If they move you away from their system,being reloaded might be a difficult task.Myself,where I go, is only important when I know I will get reloaded from there with less difficulty.I was once offered a load to a place I asked to go to with a sub standard rate.My answer was,if I wanted to go there for a loss of money,it be much faster by air.I am with a smaller carrier right now and I only go where I can stay loaded

 

[CharlesD]

I run a very small carrier and still drive. I've been in all 48 states in the last year and just in the last month I have had drivers in and out of every region of the country. The truth is, there's freight going just about anywhere you want to go and most carriers have access to it, especially the more exotic locations that a lot of drivers avoid.

 

[Streakn1]

I was working for a small Carrier. Left me stranded in Texas. Wife sent me money to get the truck back to Ohio. Office locked up, phones turned off. To top it all off they owe me $3300 in pay and about $700 in fuel. I think I will be looking for a larger Carrier to work for now.

Let us not forget what Arrow Trucking (a large fleet) recently did to most all (if not all) of its drivers when they unexpectedly locked their doors and went out of business.

Large fleet/small fleet it happens to drivers for both!

 

[x06col]

There you go Jeff. Nationwide in three Nations. Really, really, kinda funny what so many just don't want to understand. With the contacts available in regard to shippers, brokers, other trucking companys, manufacturers, private individuals, etc., there is absolutely no reason to sit OR run with empty equipment........IF you are ready (out of the pool), and equipped to move freight. There is also a mentality thing, remember...there is NO hot spot for freight EVERY day, and there is NO bad spot for freight EVERY day.

 

[davekc]

I think some have been stuck in that purple haze for so long they don't realize that there are numerous "carriers" that one can see the country with. I believe Phil that is what Jefferson was referring to.

 

[Streakn1]

I think some have been stuck in that purple haze for so long they don't realize that there are numerous "carriers" that one can see the country with. I believe Phil that is what Jefferson was referring to.

Well said Dave!

It does not take a purple haze to have the experiences and see the places as Phil speaks of. Small carriers can and do offer the same to their drivers.

An example: this past week we had the privilege of hauling damaged engine pieces from a fully loaded passenger jet that crashed in 2005. Since the incident was fatal in nature, the investigation is still ongoing. These parts will be evaluated by the research facility where we delivered them to see if they atributed to the crash. Since we were backed inside of the facility for unloading, we were present when the parts were uncrated. We were allowed to step close enough to see each damaged part. Although I have a photo of the aircraft at the crash scene, out of respect for the dead and being that the investigation is ongoing, I will not post this photo. I have posted a photo of the parts loaded on our deck prior to transport.

This was only one of many interesting loads and places our "small carrier" has enabled us to experience through their customer base. The point here is this, one should not have to feel that they must limit their search for a carrier to large carriers only to have the experiences some large carriers offer their drivers. Nor should one feel that they are taking a bigger risk by going with a small carrier verses a large carrier. A well managed, and financially strong carrier (large, medium, or small), with access to a well established national reach customer base will be able to provide stability to its drivers, and the ability to see the country. Its simply a matter of preference as to where you will feel the most secure.

 

[davekc]

I would agree. Much has changed over the years and to think that one carrier is holding all the marbles is ludicrous. Most are living in a glass bowl with that mentality.
The income potential with many carriers will and does far outweigh what is seen in that haze.
As far as "stability". What is stable any more?

 

[Streakn1]

As far as "stability". What is stable any more?

Oh soooo true!

I wonder, when a large carrier has to lower its rates (our small carrier hasn't to date) so they can continue to compete with other carriers, could this have anything to do with the future stability of the carrier?

 

[davekc]

May or may not. Sometimes it is nothing more than the greed factor.
Never assume.
You know what happens when you do.

 

[greg334]

I am thinking it's odd that the company with the best customer base is the least stable when it comes down to resource management. They seem to mismanage a lot of their resources which is surprising because of their Wal-mart/McDonalds approach to business in everything except this little group.

Overall it is not where I want to go that the freight leads me but where the customer wants me to go that matters. Be it a BIG company or a small company, it only matters if they use my truck as much as they can.

 

[Streakn1]

Be it a BIG company or a small company, it only matters if they use my truck as much as they can.

I like that thought Greg.

It makes me wonder why one is willing to allow their carrier to run their truck near empty on surface loads when they could be filling the box? When I think of the money per mile I used to be paid to haul a less than capacity surface loads in our 22' or 48' reefer box as compared to the multi-customer loads I'm now able to haul, to me that was a carrier not using my truck as much as they could.

Yes we haul a LOT of time sensitive exclusive use freight, especially when its an AOG (aircraft on the ground). But when the freight is less time sensitive, to utilize the truck more efficiently and profitable, we use up as much empty deck as possible. More money for us, more money for the carrier, more efficient use of resources.

As for the "its high value freight" argument, I don't remember surface freight being so "high value" that it couldn't have been safely hauled with other customer's freight. Let me clarify one thing, I'm not speaking of white glove/special needs freight here.

 

[Jefferson3000]

I would agree. Much has changed over the years and to think that one carrier is holding all the marbles is ludicrous. Most are living in a glass bowl with that mentality.
The income potential with many carriers will and does far outweigh what is seen in that haze.
As far as "stability". What is stable any more?

So true. What is stable today, could be entirely unstable tomorrow. Who would've thought two years ago that Washington Mutual or Wells Fargo would be a name in history? How about Enron? The best advice I could give to our friend who got stuck in Texas (or any owner op for that matter) is not be deluded by size equaling security, but rather make sure that you are never so dependent to the carrier to where you, as a small business manager (yes, that's what you are), are then unable to make your way home, should you have greater truck repair expenses than expected, emergency medical expenses, or even fuel money for the next day. It is unfortunate that there are carriers who set an owner operator up to fail by always providing an instant fuel card bailout for the driver.

Years ago, I ran a cargo van for a regionally focused carrier in southern California. We had about 18 vehicles under 10000 GWV and approx. 9 that were over. I knew of two particular drivers who were ALWAYS beholden to the company with pay advances. Many times their remaining check fell to less than 50% of their original settlement. This just brought the need for more pay advances. It became a vicious cycle so that the owner operator could not leave, because they were dependent and in debt to the company.

 

[CharlesD]

Yep, and then some people feel like an advance is something a carrier owes a driver, like there's something wrong with carriers who don't do advances.

 

[BillChaffey]

I don't see any reason to pay an advance to someone when they arrive to pick up the product being shipped. But I don't see why, if needed there can't be a % available to the person after delivery.

 

[bfeagley]

The small carriers are much more flexible. And if they belong to some expediter load boards and are partner carriers with some of the big boys, they have options for just as many loads as everybody else.