Now I'm not sure if expediting is the way to go.

[sylvester]

Just read Todays Top Story titled, "Long Road To Success". The author is someone I have listened to many times on this forum for advice and knowledge, due to there many years in this profession. So when he gave the opinion, that he thinks Expediting has reached it's plateau, it caught me by surprise. I'm now re-thinking that with the huge investment and dramatic change from being an over the road O/O (tractor trailer) driver, that this now sounds a little risky. My understanding of the word "plateau" is something that has reached it's growth period. I was under the impression, that with all the ads on here for drivers to sign on with fleets, that business was booming and still growing. Is it that there is such a turn over of drivers, that the demand is there for more drivers, or is it because there is more Expedited frieght out there than trucks?
This is a very important question to be answered for all us newbees.
More frieght than drivers is the case with over the road semi driver.
So, someone tell me, is expediting a growing proffesion or has it maxed out and now only the strong will survive as this author also stated.
Sylvester

 

[Tom Robertson]

RE: Now I'm not sure if expediting is the way to g

Sylvester:
Terry has given excellent advise and I have in the past agreed with him on many topics. This however is not one on which we agree.
All trade puclications that I have read indicate that this industry is far from reaching any plateau. In fact most predict increses in our particular industry due to more and more companies going to "JIT" inventory arrangements, rather than warehousing weeks of needed parts. Even the suppliers of the auto industry are now begining to mimick the big three in their approach to inventory.
To answer your question specifically, expediting, like OTR semi drivers is experiencing a shortage of qualified available drivers. It is my opinion that both indutries need to take a very close look at driver needs to help resolve this problem. What appears to me to be the most likely reason for the overwhelming turnover ratio in this specific industry, are broken promises. No one wants to earn 50% or even 75% of the figure that was given to him prior to signing on the dotted line with any company. Other reasons drivers leave companies vary from poor equipment, bad communications, guilt trips given for load refusals, the industry standard of dropping that driver to the bottom of the board for refusing a load that is a losing proposition for the driver - O/O, and a difference of opinion on company policy.

Terry gives excellent this article...

*******************
With all those years of expediting experience behind him, Terry has some thoughts for the prospective expediter:

"Drive someone else's truck first before making the financial commitment of buying your own. Whether it's a cargo van or Class 8 tractor, try it out at an owner's expense before jumping into this business.

Check out the various expediting companies on the web sites and talk to as many people in the business as possible.

Be realistic about this business and be aware that there are slow times through the year and that there can be substantial time spent waiting for loads.

Remember that at times, it's necessary to stay out on the road in order to maximize income.

For anyone considering a team operation, the co-driver should be a family member, i.e., spouse, boyfriend/girlfriend, etc. The money earned from the truck has to go into a common fund. It's very difficult for one truck to provide two separate incomes."
********************

Based on my readings of industry publications...
1. the industry will continue to grow through 2010... growing in that time by about 30%
2. if indeed there is a shortage of equipment presently available to the industry... it's not because there is a shortage of equipment... it's easy to buy a truck...it's somewhat more challenging to turn a profit with that truck. Check out all the used equipment designed and or built specifically for this industry on the market...you can get many very late model trucks...or any of the truck manufacturers will be happy to build one to your specs!!!
3. as an experienced semi driver you know the ropes of that industry, what it takes to succeed and what pitfalls are there for the unsuspecting newbie. many enter this niche of the trucking industry based on hearsay...invest the life's savings or worse... go into debt for the perfect truck using a business model presented to them by a company wishing to hire O/O's. Most expedited companies are in a bind... more freight than available DRIVERS...so the tendency is to quote the averages of the successful 0/0 rather than the true average of all 0/0's.
4. driver's and owner operators participating in expedited trucking will continue to be among the highest paid in the trucking industry.

IMHO it there is not a shortage of available equipment in the industry...but there is a shortage of available equipment with a driver attached to it. Take Terry's advice, and gain the additional experience in this niche of trucking on someone else's investment. After some time you will be able to crunch numbers of your own an base your investment or lack of investment on these proven figures, as well as the opinions of those 0/0's wroking for the company you wish to place your investment.

I believe that you will be successful in this industry based on your in depth questioning posted on this site, as well as the experience that you have in the industry. You worked hard to get yourself in the financal position you now enjoy...please be careful with your rewards.

I know that I speak for all who participate in this forum in wishing you the best, and encourage you to continue your interest in our niche of the trucking industry. You would be a very welcome participant!

 

[twodogsdaddy]

RE: Now I'm not sure if expediting is the way to g

Great info. there Tom...Thanks

 

[Glen Rice]

RE: Now I'm not sure if expediting is the way to g

It's interesting that you are still drawn to the tractor trailer rut. In looking at the adds for O/O in the trucking publications I realize nothing has changed and they are still offering .86 to 1.00 a mile opportunitys! You might as well go flip burgers at McDonalds. If you wanna go broke in trucking driveing a "Big" rig should do it in 6 months or less. General freight is cheap and plentiful. Specialized transportation is and always will be the"niche" to be in. You wanna make big money in big rigs go to the van lines and start moving electronics, household, exotic cars, you get the point. Or, how about expediting, small truck thats easy to maneuver and quick to load and unload. When I did household, it was common to spend several days doing inventory and loading. I've looked into several trucking opportunitys and worked at most of them and I always enjoyed the people, places and opportunities that expediting offered my wife and myself. It ain't for everyone, it is right for me. I hope you find your niche and never regret your decision. My worst day in expediting was better than my best day in big rig truckingIn hindsight looking back. Drive safe and be profitable!

 

[davekc]

RE: Now I'm not sure if expediting is the way to g

Excellent response Tom. I think that is the current state of expediting. The current driver shortage will continue in expediting as well as general line haul. Currently, companies are starting to pay for sins of the past as efforts to recruit qualified drivers is shrinking. There is plenty of freight to be moved but the ones that can control driver retention, will be the ones hauling it.
Davekc

 

[Marty]

RE: Now I'm not sure if expediting is the way to g

For me Expediting is still the way to go but I beleive that the industry reached its plateau years ago.
I think the industry took a hit after 911 because many companies feared a disruption of transportation services due to terriorizm. After all they witnessed an immediate and total shutdown of our country's air space. Many companies feared that if next time a bomb was set off in a truck or that if our interstate system was crippled by strategically placed explosions on key bridges, the entire trucking industry might be shut down.
Fear of supply lines being disrupted made just-in-time delevery less attractive than wharehousing.

 

[sylvester]

RE: Now I'm not sure if expediting is the way to g

Is what I type get on here in full? It seems I'm not expressing my question properly. If you go back and read any post I have put on here or any reply I have given, it has been pro Expedite.
I have one question about a possible negative aspect of this trade.
A driver with many years of Expediting thinks the industry has leveled out, yet companies continue to hire large numbers of drivers.
Just a simple question to you who are out there now.
Is this industry still growing and is there enough frieght to handle more drivers?
Time and time again I read that you should ask questions when considering going this route.
I am taking your advise.
Sylvester

 

[davekc]

RE: Now I'm not sure if expediting is the way to g

Is this industry still growing and is there enough frieght to handle more drivers?
Time and time again I read that you should ask questions when considering going this route.
I am taking your advise.
Sylvester

Clearly there is more freight than there are drivers. This applies to every sector of trucking.
Davekc

 

[sylvester]

RE: Now I'm not sure if expediting is the way to g

Thank you. That was all I wanted, an answer to the question.
You folks have been out there for a while and by the looks of it making a good living.
I'm going to be going into "virgin" territory. Yes, I'm a little apprehensive, weren't all of you?
It just worried me some when it was said that Expediting had reached it plateau.
Yes I'm going to compare it to what I have experience at, that is all I have to go by.
So if any of you think I'm feeling tractor trailer is superior to Expediting in any form, forget it.
Again, it has been repeated by many on here, ASK QUESTIONS!!
I'm taking your advice, the question had no intent of disrespect towards Expediting in any way.
Sylvester

 

[terryandrene]

RE: Now I'm not sure if expediting is the way to g

My
>understanding of the word "plateau" is something that has
>reached it's growth period.

Sylvester:

Please don't be discouraged by one persons choice of words in rendering an opinion while being interviewed for an article by the most capable Jeff Jensen. I had no quantifiable data that would qualify me to be an expert spokesman for the industry. I was speaking off-the-cuff about my impressions of this business during an interview at the beginning of this year.

For the record, Rene' and I have driven fewer miles and have grossed more money this year than any previous year, and the year isn't over. This fact alone might render my plateau comment suspect, however, I still stand by it. The following is my reason for saying that.

I was implying that the expedite freight being hauled be me and those with whom I had been associated had pretty much steadied out, or plateaued, over the recent past. As more and more people recognized the profitability of this segment of trucking, small companies were springing up all over. Many of the companies were founded by successful expediters who siphoned off one or more customers from the big carriers, This fact contributed to the steadying of the amount of expedite freight available to me.

Tom Robertson is a good example of an entrepreneur who has started a business hauling some of the freight that my carrier used to haul. His success doesn't mean our failure though, it just means our carrier and others like it have to constantly vie for the new customers starting freight generating businesses. It's a vicious cycle, and I now believe that the plateau I mentioned earlier in the year, is now behind us and we are climbing toward the next one.

So, once again Sylvester, PLease don't let one guy's comment sway you in your decision making process; many of the other folks on this forum have a far better insight for the future of expediting than me

Terry

 

[raceman]

RE: Now I'm not sure if expediting is the way to g

Sylvester, I will tell you what I think as a small fleet owner who is trying to grow in this business as well as another area of trucking.It is very good but it takes time and a lot of learning. It is not something you should go spend your money on(A truck I mean) without researching it and making sure you understand what the business is about, who the carriers are and who the customers are. You do not have to have 50 years in this business to make a good living in it but you do need to know about the business and have a business head on your shoulders. Many people buy a truck go out and think the freight is going to jump on the truck. You have to understand that does not happen so you need to know how to be where the freight is. You need to know hot times and cold times. You have to have the ability to know how to look for freight, wait for freight and so on. This is a very good business. It aint OTR trucking though. It is early morning, late night, big three, mom and pop, it takes some thinking. If you do your home work and know what you are getting into and you use your head this will do very well for you. Many people must think it is running from terminal to terminal with loads just waiting for you to back up and get em, that aint this. Keep reading and asking questions. Many people that are on here used to be OTR drivers and many of us came from other careers. You do not have to be a born mathematician to do well in math but you do have to study. Study and you will learn to do fine. Everyone on here can help you in some way. Tom and others are right as far as I am concerned it is not close to being flatlined by any means. Good Luck.

---Why hug a tree when you can cut it down and print BOLs with it---


Raceman

 

[highway star]

RE: Now I'm not sure if expediting is the way to g

I would tend to agree that it will be some time before this business levels off in terms of the variety of customers using it. Of more concern to the newbie is the ebb and flow of the freight. I don't know of anyone who didn't have a good 2000. 2001 was not as good for most. The last few months have been good for me, but the last couple weeks have really slowed down. Thats how it goes in expediting. It's being able to deal with the irregularity that will help you suceed. On the issue of starting off in someone elses truck, that depends a lot on the owner of the truck. There are some real bad ones out there and that could drive you away from a business that you might otherwise have done well in and enjoyed. I was offered this when I got going in Dec.'98. I chose to buy my own cargo van and if it didn't work out I still had something I could drive around. I thought that I would move up to a bigger truck if I stayed in it, but the no log book deal is pretty cool.

 

[sylvester]

RE: Now I'm not sure if expediting is the way to g

Thanks everyone for calming this old cat down. After two years of waiting for this opportunity to become reality, maybe I was reading too much into that article. You see,terryandrene, have been our insperation for some time now. So when I read that, it ment a lot more than if anyone else had said it. Sorry terryandrene, if by my saying that has made you blush, but you two are pretty straight at what it takes to be successful in this trade.
Glenn, if I have came across since being on this forum that tractor trailer is in any way better, that is the furthest from the truth.
The wife and I would never go back to that line of work, even if we decide not to go Expediting.
There is a local FedEx O/O route that we can have in our home town.
Thanks again for all the positive feed back.
Sylvester

 

[ATeam]

RE: Now I'm not sure if expediting is the way to g

We've only been doing this since August, 2003. in that time, there has been plenty of freight. Our gross income is better than we dared hope when we first jumped in.

Economists talk about adverse general economic conditions and adverse industry conditions. Your challenge as an expediter (or any trucker for that matter) is to successfully navigate the conditions you encounter, in good times and bad.

Consider the following: Most commentators say the last year or so has been fantastic for truckers. Freight is up. Hours of Service rules have given trucking companies leverage to charge detention time and reduce waiting at docks. Freight rate hikes have held and have not been undercut by new entrants...due mostly to the driver shortage.

In the midst of all this sweetness and joy, my and I decided to ordera brand new, expensive truck of our own. Since then, steel prices have soared, increasing our truck price. Fuel prices have soared, increasing our operating expense. Interest rates have increased, increasing our financing costs. We had to fire our fleet owner and find another one due to his failure to maintain his trucks. That truck down time and non-productive time between fleet owners reduced our income.

While industry pundits are smiling, we're seeing one adverse condition after another develop in our one-truck business. Is that a reason to give up and get out? Not on your life! We were fully prepared for these changes and are happy as clams. Also, a number of positive developments have helped offset the negative ones cited above.

No matter where the economy may be in its cycle, and no matter how the transportation sector is performing within the economy, and no matter how trucking is doing within the transportation sector, and no matter how expediting is doing within trucking, there will always be you, the individual owner/operator waking up to face each day anew.

It's not about the state of the industry. It's about your ability to successfully navigate the changing conditions you will face as an expediter in the months and years ahead.

 

[davekc]

RE: Now I'm not sure if expediting is the way to g

In the midst of all this sweetness and joy, my and I decided to ordera brand new, expensive truck of our own. Since then, steel prices have soared, increasing our truck price. Fuel prices have soared, increasing our operating expense. Interest rates have increased, increasing our financing costs. We had to fire our fleet owner and find another one due to his failure to maintain his trucks. That truck down time and non-productive time between fleet owners reduced our income.

I think the folks that owned the truck you were driving would have a different prospective of your performance. I think I would say you parted company and leave it at that.
Davekc

 

[ATeam]

RE: Now I'm not sure if expediting is the way to g

>I think the folks that owned the truck you were driving
>would have a different prospective of your performance. I
>think I would say you parted company and leave it at that.
>Davekc

Absolutely not! While they may tell a different storyt, the facts are clear. We fired them for cause, specifically, repeated failures to maintain their trucks. We said so in our contract-termination letter to them and spelled the failures out. Regarding our performance, there is not a fleet owner out there that would not die for a team that put the numbers up we did. Finally, since we changed fleet owners, our performance has increased, due in part to the fact that we are now in a well-maintained and more reliable truck.

It is not appropriate for disastisfied drivers to name fleet owners in this forum, and I trust, DaveKC, that you and others have the good sense not to name our former fleet owners here, if you know who they are. I have never once mentioned their names anywhere on the Internet or other public forum and it's unlikely that I ever will. They are smart enough to know not to use us as a driver reference. We left them and that's that.

As all fleet owners do, these folks have a number of former drivers in their past. Some of those drivers are pleased as punch to have worked with them. Others maintain an ongoing outrage that is frightening to listen to. We're not outraged. We simply made the right business decision for us and fired them.

While it's inappropriate to down fleet owners by name in this forum, it is very appropriate for drivers to share their experiences. so other drivers, especially new ones, can know what to be aware of when seeking fleet owners of their own. I'm especially keen to let new drivers know that they have the power to fire a fleet owner and that there are others out there that will snap up a good team given the chance.

 

[LDB]

RE: Now I'm not sure if expediting is the way to g

The semantics are killing me. I could be wrong in my interpretation but it seems 'firing a fleet owner' is just a new way of saying resigning just as 'affirmative action' is a new way of saying discrimination.

Leo
truck 767

Support the entire Constitution, not just the parts you like.

 

[davekc]

RE: Now I'm not sure if expediting is the way to g

The semantics are killing me. I could be wrong in my interpretation but it seems 'firing a fleet owner' is just a new way of saying resigning just as 'affirmative action' is a new way of saying discrimination.
Leo

Very good comparison.

I do find it strange that someone would rave about their owners over the past year. And through their own admission indicating they were great at supplying the right equipment, countless hours of mentoring someone into the business, only to portray them later as a poor fleet owner. Yes, you can bet their interpretation of your performance is quite different. As I said earlier, I don't think "firing" them is how I would characterize it.
Davekc

 

[LDB]

RE: Now I'm not sure if expediting is the way to g

I would look at a plateau as a temporary respite that allows you to quit climbing and catch your breath. Once you've crossed the plateau then the climb begins again. The new climb starts fresh and rested and with added knowledge gained in previous climbs as well as equipment you've had time to optimize and prepare. I see plateaus as a good thing. There may be many plateaus however as long as the peak is above you it's still a good thing.

Leo
truck 767

Support the entire Constitution, not just the parts you like.

 

[X1_SRH]

RE: Now I'm not sure if expediting is the way to g

I can't let this topic go by without jumping up on my soap box for a few minutes. As the economy improves or worsens, depending on the situation - expediting is one of the first segments of industry to feel the bite or the boom. Around the time the attacks on NYC on 9/11 Expedited freight began spiraling downward - and bottomed out near the first quarter of 2004. During that time many small expediting and general freight companies went under - and I mean a lot of them. All kinds of owner operators sold their equipment and got out of the game - and companies had to make pay cuts to offset the higher costs of insurance and compete for the available freight. In my opinion - That was your plateau - The bottom of the bell curve, with no place to go but up. This year has proven that Expediting is coming out of it's 2 year drought. Just look at your numbers - They don't lie.

We are now experiencing a rebirth of the industry - with the volume of freight exceeding the amount of available trucks because so many discouraged owner ops took such a beating in the previous couple of years. History is repeating itself - look at what happened in the infancy of our beloved industry. Where did the freight come from? Where did the newly "converted" Expedite drivers come from? I'll tell you - the same places it's all coming from now. Expediting is replenishing a depleted pool of drivers with new blood. History IS repeating itself.

During the last few years many companies just did their best to survive and maintain, just hoping that things would get better again. Other companies maintained the faith that things WOULD get better again and invested in the future, implementing systems that could keep up with the anticipated massive volume of freight and still deliver exemplary customer service. When the amount of trucks catches up with the volume of freight the customer's main concern will be value and service for their shipping dollar. It's not just as simple as a driver and a truck anymore. Are you prepared to deliver maximum value to your shipper and your consignee? Is your personal business running at peak efficiency to maximize your revenue and still give you the quality of life you desire? Is your company ready to maximize it's resources to provide maximum service to it's customers?

Now is the time to ask yourselves those questions - and tweak a few things if they need some changing. Expediting is on the edge of something big. Changes don't happen over night, but the future is looking very bright. I'll bet that 2005 will be your best revenue year out of the last 5. I'm not a fortune teller but I see the writing on the wall. Y'all just be ready!!!

In my humble opinion..... Thanx - X