The local Newspaper where i live had an article today that stated the economy would be in a upswing this spring.These are course ther economic Gru!s that said to buy Enron and Lucent etc. I always get amazed at how these 4th rate analysts can decide how and when the economy will respond. WE are the economy and much of what we do is based on what the media reports. Good example is me.Our D unit is 5.5 years old,has 567,000 miles on it and should be replaced,But when I read about all the layoffs in the manufacturing and high tech sectors,that monthly payment of $0.00 sure is nice.
I feel that 2002 will bring some major shakeups in the expediting field.Last year I didn!t run much above I 40 (YEA) but when I did I always see new companies doing this work. Every time I go North there is BillyBob!s Express, Rocket Freight etc, they all take away a small amount of business that used to flow to the major playes in this industry.Their overhead is very small compared to Tri state,Fedex CC,Panther and so on. So the competition will eat the large oufits who will have to discount more and more to keep their customer base. As long as there is a pool of contractor/drivers willing to accept these rates they will stay afloat. They will not cut their staffing but will accept reductions and loose quality experienced drivers in their fleets.
So what does all this mean.I think there will be some mergers down the road in order to reduce overhead. The smart drivers have a reseve to get them through difficult times(1995) and will mange to stay on.I don!t think switching companies every 3-6 months works out well. Two weeks ago in SanAntonio Tx we were offered a run from Cotulla TX to Laredo (55 miles) to rescue a load from a stranded C truck. Deadhead to the transfer point was 144 miles,then I would have to use my $450.00 pallet jack to transfer this cargo and have a return deadhead to San Antonio (150 miles). All this for $85.00,and they wonder why people quit.After refusing this the TPS Dispatcher called and said" My refusal was unacceptable and she was going to write me up"..So I said"OK you do that".We are thinkuing seriously of getting out of this business and getting back into the real world,which is scarey.LOL Happy New Year Oh and Bill ,White Castle stock jumped 10 points after your last post..
