Leased on with multiple carriers

[OntarioVanMan]

It isn't illegal or anything like that. So Sylectus would really have no place or authority to get involved with something like that.

It sure may not be illegal....but it hurts Sylectus members hence then yes they'd have a place since it is a "membership"...with rules and such....

You'd think members such as yourself would have a vested interest in keeping "same units" off the board. It is your money as well....

 

[Rocketman]

The part that has never made since to me is that contractor's aren't getting any better pay per mile than they could get if they just went with a good exclusive lease carrier. Why on earth would you want to pay your own cargo ins and keep up with 3 or 4 different companies, but not bring in more money? Getting more freight doesn't make it worth while, it just makes you'll go broke faster.

 

[OntarioVanMan]

The part that has never made since to me is that contractor's aren't getting any better pay per mile than they could get if they just went with a good exclusive lease carrier. Why on earth would you want to pay your own cargo ins and keep up with 3 or 4 different companies, but not bring in more money? Getting more freight doesn't make it worth while, it just makes you'll go broke faster.

I know some people it seems to work for them or so they say....others not so much they sit as long or longer....they never seem to get any DH money or any benefits we get with going with one carrier....

 

[usafk9]

But you kind of do have a dog in this fight. Things that have an effect on the industry as a whole affect all of us, whether or not your carrier allows this or you are one of the people who does this.

People will say, "But my carrier doesn't use bid board freight so I'm ok." but what if your carrier loses that freight source to a 3PL or another carrier who will turn around and put that freight on a bid board and run it for cheaper? If the shipper can find someone to run it cheaper, they're going to do that.

As the guy with orthopedic shoes, I stand corrected. Maybe indirectly; maybe sometimes directly. On occasion we do get offered bid board loads. Guess I should look at that differently. Learned something new today.

Thanks, Charles.

 

[greg334]

So why doesn't Sylectus devise a way to filter "same units" out of the system?..either thru VIN numbers or plate numbers....effectively ending this trend....

I'm thinking that they don't want to do that, it has to do with numbers and how they show activity.

 

[OntarioVanMan]

I'm thinking that they don't want to do that, it has to do with numbers and how they show activity.

It messes up everything....1 unit gets a load and it "appears" as 3 units have moved....That would send a phoney message as if volume was improving....oh wait...Sylectus already makes that claim....

 

[fastrod]

Vans don't require their own authority. So they get their own liability and cargo insurance policies.

Yes they are required to have operating authority and all they need to get it is a $300,000 primary liability policy and at least $5,000 cargo ins. policy. It is an operating authority for vehicles 10,000 lbs and under and very easy to get and really not that expensive.

 

[greg334]

It messes up everything....1 unit gets a load and it "appears" as 3 units have moved....That would send a phoney message as if volume was improving....oh wait...Sylectus already makes that claim....

Yeah it does and it happens so what one do?

I guess I don't have to worry about it unless the sprinter gets on the road.

 

[ATeam]

That's the theory, and it's what is behind the myth of being leased on to multiple carriers means having less down time. It's the exception to the rule, because the overwhelming number of carriers who allow multiple leases are all bidding on the same freight in the same manner, and do not have a broader load base. Those with a broader load base are not likely to allow their contractors to lease with another company. That's why the notion of being leased on with multiple carriers will get you more freight ends up being a self-deluded myth, in most cases. You end up with the same amount of freight, and usually at a lower rate.

It seems like those carriers are giving a driver two mirrors and telling him he is better off because he has three noses.

 

[OntarioVanMan]

Yeah it does and it happens so what one do?

I guess I don't have to worry about it unless the sprinter gets on the road.

some carriers use Sylectus numbers to base recruitment on...and if they are not more accurate....

 

[aristotle]

It messes up everything....1 unit gets a load and it "appears" as 3 units have moved....That would send a phoney message as if volume was improving....oh wait...Sylectus already makes that claim....

OVM... volume will improve if and when the economy improves. Worrying about the little guy posted on Sylectus is wasted energy. The little guy running for multiple carriers has every right to do so if legally compliant. Competition is good. Having worked under contract with large and small carriers, I can attest large well-known carriers do not deliver freight any better than small carriers. What we do is easy. This endless obsessing is not helpful. If you want to see more freight volume, pray for an improving economy.

 

[Turtle]

It seems like those carriers are giving a driver two mirrors and telling him he is better off because he has three noses.

While keeping a couple of mirrors for themselves, since in the end the only party who truly benefits from such an arrangement is the shipper.

 

[ATeam]

Obviously, I don't have a dog in this fight ...

I can see how a FedEx Custom Critical contractor would believe that. You get your freight by waiting for the beep, as Diane and I did for seven years. Since leaving FedEx, I have learned more about the significant use FedEx makes of outside carriers (including our truck at times) and how these carriers operate. You may not feel that you have a dog in this fight but the wolves may be closer to your door than you think.

The expediting industry consists of about 15,000 trucks and hundreds of carriers. If FedEx Custom Critical has 1,500 trucks, you can be sure that a whole lot of customers are being served by the other 90 percent.

It is fascinating to learn about the other side of expediing (small carriers). Profitable too. We left FedEx Custom Critical for Landstar Express America (about 250 trucks) exactly mid-year in 2011. While we were with each carrier 50 percent of the time, two-thirds of our 2011 revenue was earned at Landstar. The more Diane and I learn about how freight flows and how our agents work, the better it gets.

 

[usafk9]

I can see how a FedEx Custom Critical contractor would believe that. You get your freight by waiting for the beep, as Diane and I did for seven years. Since leaving FedEx, I have learned more about the significant use FedEx makes of outside carriers (including our truck at times) and how these carriers operate. You may not feel that you have a dog in this fight but the wolves may be closer to your door than you think.

The expediting industry consists of about 15,000 trucks and hundreds of carriers. If FedEx Custom Critical has 1,500 trucks, you can be sure that a whole lot of customers are being served by the other 90 percent.

It is fascinating to learn about the other side of expediing (small carriers). Profitable too. We left FedEx Custom Critical for Landstar Express America (about 250 trucks) exactly mid-year in 2011. While we were with each carrier 50 percent of the time, two-thirds of our 2011 revenue was earned at Landstar. The more Diane and I learn about how freight flows and how our agents work, the better it gets.

I'm fairly familiar with our carrier's use of outside contractors to haul their freight. I became familiar when sitting in Woodstock, Ontario, and asked why I turned down a fairly cheap load. After I told them we wouldn't move our truck at that rate, they replied that if we didn't, they would have to call an outside carrier to cover it. I offered to help them find one.

While sometimes I get frustrated with our carrier, a certain Puerto Rican reminds me of just how fortunate we are. We are mindful of FedEx' desire to turn a profit, and requirement to return value to their shareholders. Most of the time, they are mindful of our needs to do the same. Driver/contractor turnover is expensive, and I know that FedEx is very aware of that.

Regarding the 2/3 income comment, I wonder how many more miles you had to run to achieve those numbers. I suspect you ran more, at a lower rate than you did with FedEx. Not saying either is better; just very different games.

 

[jelliott]

Sylectus is a software, not a membership and it has very little rules or oversight. It is like buying any other software. So they really don't care or want to get into this fight. They are software people, bottom line. Now TEANA is am organization and it has rules, but it is a trade organization. The model of people running for multiple carriers may not be loved by a lot of carriers it has been researched and found to be legal. We may not "like" brokers, but the same applies, they are a legal business model. I personally think the model will not succeed long term. Too many under capitalized companies will fail and burn independents. At the same time the "cost" of independence will prove to be less profitable endeavor for the probable majority of these van operators. IMHO.

 

[greg334]

So John what does it take to get access to the software?

 

[davekc]

I'm fairly familiar with our carrier's use of outside contractors to haul their freight. I became familiar when sitting in Woodstock, Ontario, and asked why I turned down a fairly cheap load. After I told them we wouldn't move our truck at that rate, they replied that if we didn't, they would have to call an outside carrier to cover it. I offered to help them find one.

While sometimes I get frustrated with our carrier, a certain Puerto Rican reminds me of just how fortunate we are. We are mindful of FedEx' desire to turn a profit, and requirement to return value to their shareholders. Most of the time, they are mindful of our needs to do the same. Driver/contractor turnover is expensive, and I know that FedEx is very aware of that.

Regarding the 2/3 income comment, I wonder how many more miles you had to run to achieve those numbers. I suspect you ran more, at a lower rate than you did with FedEx. Not saying either is better; just very different games.

When you say cheaper freight, it is cheaper to their contractors. In most cases the outside carrier is running it for far more than they would pay there own trucks. That is probably what Phil is finding out.

 

[usafk9]

Sylectus is a software, not a membership and it has very little rules or oversight. It is like buying any other software. So they really don't care or want to get into this fight. They are software people, bottom line. Now TEANA is am organization and it has rules, but it is a trade organization. The model of people running for multiple carriers may not be loved by a lot of carriers it has been researched and found to be legal. We may not "like" brokers, but the same applies, they are a legal business model. I personally think the model will not succeed long term. Too many under capitalized companies will fail and burn independents. At the same time the "cost" of independence will prove to be less profitable endeavor for the probable majority of these van operators. IMHO.

And the learning continues....

It may not work for that/those specific independents, or that type of independent period? I guess what I'm asking, is that just because those independents fail, won't there be some more warm bodies that fill their void when they do, in an endless, ugly cycle?

 

[turritrans]

So John what does it take to get access to the software?

Your own authority and insurance

Fleet of at least 5 trucks

Haven't recently left a Sylectus carrier as on owner op

And a significant down payment



Great software system, but for the small carriers may not be cost effective. We waited several years and grew our fleet before we purchased the full dispatch system. Also have to consider a Qualcomm type service and the cost associated with it to get the full bennefits of the software.

 

[usafk9]

When you say cheaper freight, it is cheaper to their contractors. In most cases the outside carrier is running it for far more than they would pay there own trucks. That is probably what Phil is finding out.

Yep, I'm aware of that. Very aware.