Slow Cargo Van Freight Toledo-Detroit

Turtle

Administrator
Staff member
Retired Expediter
Some of those layers are right there within the carrier itself. They don't want to do much peeling there.
 

blizzard2014

Veteran Expediter
Driver
Who is the customer? If your customer is a 3PL, broker or another carrier, how many people stepped on the original rate of probably $2.25+ per mile that the original customer got dinged for? In my opinion it's not low rates that's the problem in the expedite market, it's the number of people getting a cut out of those rates.

There is no one taking a cut when I get loads from some load boards. The load board charges 25 bucks a pop to manage the load or whatever and then give it out to the carriers for whatever they bid it up for. How am I going to cut out the middle man? You mean back solicit. Also, these boards don't work with 1 guy in a cargo van - that's why I'm out of the cargo van and done with the driver mind-set. I'm a carrier now and I conduce myself as such. I also get loads from brokers directly who get them from their customer.

Of course the brokers take a cut - the are the ones who pounded the pavement to find the customer just like we did with the cadaver loads we bring up from oversees to a certain universities medical science laboratory. On those loads we get it from a guy who gets it from a customer and gives it to us. He pockets a cut as well but he made the direct contact with the originating customer.

I am not greedy - I don't need to cut out the middleman on these shipments. I make enough to pay the drivers a good rate and make some money at it as well. None of my drivers complain about rates. I am not sure what you are getting at about too many people taking a cut but my drivers would not have loads without me spending my time getting them the loads.

And to all of the haters who hate competition - you might as well switch over to the democrat party because this is a free market enterprise here in America. Competition is the driving force behind out economy and for every company that goes under a new one springs up to pick up the slack. Even the bigger companies can't gobble up all of the jobs.
 

OntarioVanMan

Retired Expediter
Owner/Operator
No i don't hate competition... I dislike that .85 to $1.00 is still considered a good rate. The very same rate when gas was $1.50 a gallon and CVs cost 20k. Competition has driven our rates down so yeah I just might in this case hate competition.
 

kwexpress

Veteran Expediter
No i don't hate competition... I dislike that .85 to $1.00 is still considered a good rate. The very same rate when gas was $1.50 a gallon and CVs cost 20k. Competition has driven our rates down so yeah I just might in this case hate competition.

yeah what he said not only that but in 97 the fuel was only costing less than a 1.00 and was still getting the same rates and better than today.
 

OntarioVanMan

Retired Expediter
Owner/Operator
So tell me... Who was competition good for? It sure wasn't for us O/O's!! It's making us into a transient occupation ...
 

blizzard2014

Veteran Expediter
Driver
So you guys want more regulation? Barriers to entry for drivers and companies? I don't see how much more qualification I could have having been a driver for almost 10 years. My management philosophy is bottom up management, not top down management. I am like the mail clerk who worked his way up to the head of the board. There is always going to be competition in any business and the rates are what they are. The customers can snap their fingers and find a van on almost every street corner. Now our bigger trucks don't have to take cheap rates - not even out of Laredo.

I am just taking the place of other carriers that have fallen by the wayside. Everyone starts out small - even Panther started out in a basement with two trucks. If I am not here to do business someone else will take my place. It's the nature of business.
 

OntarioVanMan

Retired Expediter
Owner/Operator
Maybe stricter entry is what we really need? Like a CDL B with hazmat as minimum requirement.....Lets up the game a bit?......Push shippers to the next level?....as long as there is a transient workforce to draw from, rates will never get better....You are not talking with a rank amateur either...I understand "market forces" "supply and demand" wouldn't you like 20% of $2.00 better then $1.20?......you carriers know the money is out there.....do you know what a mere .10/dime a mile the difference of quality of life for a driver or /O/O would make?

I don't know if a Panther example is a good one to point out....as in their CV division...
 
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xiggi

Veteran Expediter
Owner/Operator
So tell me... Who was competition good for? It sure wasn't for us O/O's!! It's making us into a transient occupation ...

Competition is good for the consumer. It is also good for drivers in the respect it keeps more freight on trucks and less on trains and plains. Look at the number of trucks on the road today compared to twenty years ago when our manufacturing base was stronger. Low prices do contribute to turnover but does not by itself make us a transient industry. The lifestyle itself is something many people cannot deal with.

Im not arguing for lower rates just bringing some honesty to the discussion.

Sent from my Fisher Price ABC123 via EO Forums
 

OntarioVanMan

Retired Expediter
Owner/Operator
Competition is good for the consumer. It is also good for drivers in the respect it keeps more freight on trucks and less on trains and plains. Look at the number of trucks on the road today compared to twenty years ago when our manufacturing base was stronger. Low prices do contribute to turnover but does not by itself make us a transient industry. The lifestyle itself is something many people cannot deal with.

Im not arguing for lower rates just bringing some honesty to the discussion.

Sent from my Fisher Price ABC123 via EO Forums

Honesty and more angles/perspectives to look at the issue is always good...:)
 

aquitted

Veteran Expediter
Retired Expediter
It would be nice if ALL the carriers/competition just said no to cheap freight if you feel the need to bid lower thats fine just keep it in a reasonable range.
 

Moot

Veteran Expediter
Owner/Operator
There is no one taking a cut when I get loads from some load boards.
Who posts the load on the load board, the actual shipper? A carrier? A broker or 3PL? A carrier that ran the load through an in-house broker?
 

ATeam

Senior Member
Retired Expediter
Look at the number of trucks on the road today compared to twenty years ago when our manufacturing base was stronger.

I'm not familiar with that number. What is the statistic? What is the trend? I would think that population growth is a factor too.
 

blizzard2014

Veteran Expediter
Driver
Well technically there is no need for property brokers in the freight industry. Carriers can obtain contracts with shippers directly and cut out the middle man. The only problem with that is sometimes that small carrier cannot handle all of the business that originates from the new contract. The same is true even with bigger operations such as, Fedex Custom Critical. They broker out quite a bit of freight on a daily basis due to lack of coverage or other unforseen issues.

But there is no need for brokers or 3PLS's other than a shippers need to outsource their freight management needs to another party so they can save on having an internal shipping department. Like the automotive companies using NLMI and various other 3PL's to handle their freight management so that they can focus on other aspects of their business. But those contracts can be obtained directly by a carrier - but even as big as Panther is "don't quote me on this" only handles 40 percent of NLM's daily volume of freight. So even one of the biggest "if not the biggest" expedite carriers in the country can't handle more than 40 percent of the automotive business.

That is why there are middle men in place to make sure the loads get covered and the parts get to where they need to be in order to keep the assembly lines moving. It's just a part of business. I never knew how much I liked business until I jumped onto the other side of the coin. I am going to go back to school part time and obtain my degree in business and management. Business is very fascinating and America is a great place to live. Where else can you go from living in a cargo van, sleeping on the dirty floor of a GMC van to starting up your own expedite company and move up a little bit on the economic food chain?
 
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asjssl

Veteran Expediter
Fleet Owner
Well technically there is no need for property brokers in the freight industry. Carriers can obtain contracts with shippers directly and cut out the middle man. The only problem with that is sometimes that small carrier cannot handle all of the business that originates from the new contract. The same is true even with bigger operations such as, Fedex Custom Critical. They broker out quite a bit of freight on a daily basis due to lack of coverage or other unforseen issues.

But there is no need for brokers or 3PLS's other than a shippers need to outsource their freight management needs to another party so they can save on having an internal shipping department. Like the automotive companies using NLMI and various other 3PL's to handle their freight management so that they can focus on other aspects of their business. But those contracts can be obtained directly by a carrier - but even as big as Panther is "don't quote me on this" only handles 40 percent of NLM's daily volume of freight. So even one of the biggest "if not the biggest" expedite carriers in the country can't handle more than 40 percent of the automotive business.

That is why there are middle men in place to make sure the loads get covered and the parts get to where they need to be in order to keep the assembly lines moving. It's just a part of business. I never knew how much I liked business until I jumped onto the other side of the coin. I am going to go back to school part time and obtain my degree in business and management. Business is very fascinating and America is a great place to live. Where else can you go from living in a cargo van, sleeping on the dirty floor of a GMC van to starting up your own expedite company and move up a little bit on the economic food chain?

Dont forget us little guys....:D

Sent from my Etch-A-Sketch
 
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