The Inevitable Begins

[LisaLouHoo]

Due to "lack of freight, increased fuel costs making certain expeditions unavailable to profitably bid, and the cost of liability insurance", two expediters we know were "relieved" of their contracts with J.D. Clark this morning. Sign of the times? More to follow?

"Bruises fade and bones will mend-but a psyche can be ruined FOREVER" : LisaLouHoo, c. 2008

 

[Ragman]

Due to "lack of freight, increased fuel costs making certain expeditions unavailable to profitably bid, and the cost of liability insurance", two expediters we know were "relieved" of their contracts with J.D. Clark this morning. Sign of the times? More to follow?

"Bruises fade and bones will mend-but a psyche can be ruined FOREVER" : LisaLouHoo, c. 2008

Bummer! Anybody we know?

 

[chefdennis]

Most here knows JD Clark from his post on here..but..if the reasons given are true, and not being used to "cya" and there are really other reasons...it sounds like a "lack of cash flow".....hey OVM.....

 

[LisaLouHoo]

I doubt it, far as I know they don't hang out on EO...but now WE wait for the whip to come down 'cos these people who were cut are in MI AND drive C/Vs...and we haven't seen much action out of JD from the getgo.

Which is why he runs for multiple carriers. This stuff can happen.

"Bruises fade and bones will mend-but a psyche can be ruined FOREVER" : LisaLouHoo, c. 2008

 

[OntarioVanMan]

Most here knows JD Clark from his post on here..but..if the reasons given are true, and not being used to "cya" and there are really other reasons...it sounds like a "lack of cash flow".....hey OVM.....

I am not saying a word....*LOL*.....besides...I told ya so...

 

[CharlesD]

I'd like to check with Paul Harvey and get "the rest of the story."

We're not going to cancel any van contracts right now because of slow van freight, but I'm just being brutally honest with van drivers about how things are. If it doesn't cost me anything to have a van sitting around, why get rid of him? A customer might call with something good. That's the way I look at it. I can't imagine them just cancelling a contract for no reason other than slow freight. It would seem more reasonable to offer to let the driver carry his own insurance so it doesn't cost anything to keep him on. Then at least you have the capacity if a customer needs it. If the driver decides to leave because of the slow freight, then that's a different story.

 

[scottm4211]

I have nothing to add except that I tried Halo Burger the other day. Pretty good!

 

[lhannah]

I'd like to check with Paul Harvey and get "the rest of the story."

We're not going to cancel any van contracts right now because of slow van freight, but I'm just being brutally honest with van drivers about how things are. If it doesn't cost me anything to have a van sitting around, why get rid of him? A customer might call with something good. That's the way I look at it. I can't imagine them just cancelling a contract for no reason other than slow freight. It would seem more reasonable to offer to let the driver carry his own insurance so it doesn't cost anything to keep him on. Then at least you have the capacity if a customer needs it. If the driver decides to leave because of the slow freight, then that's a different story.

+1 Although drivers aren't excited to hear how bad freight has been lately, being honest about the situation and giving them options has to be the better route.

 

[LisaLouHoo]

+1 Although drivers aren't excited to hear how bad freight has been lately, being honest about the situation and giving them options has to be the better route.

Any driver in this business for any length of time...who has any experience in this line of work...knows freight is going to be slow at times. Can't move freight that isn't available, for certain.

Honesty is an unfortunate sticking point. I think there is a cash flow issue out and about, because there are other carriers who are slower to pay than ever before, with no viable explanation; I mean, if they aren't getting paid, they need to tell their drivers that...but some of the excuses that have been given? Eye rolling and non-sensical. One of Jeff's carriers is more than 90 days behind and every time he calls them, they don't say a word about not getting paid on their end. Always something non-business related as to why they can't keep up...the cat puked up a hairball and it came to life and beat up the neighbor's dog or something. I dunno. Dumb stuff.

If this carrier isn't getting paid on their end they need to say so. However, them NOT saying so raises suspicions that there's something else at work here. Maybe they've spread too thin like so many others...maybe they don't have the business sense to fold eough money back into the company and now tides have turned.

Whatever the case, if drivers are going to be cut or pay is going to be inexcusably late, it is time to swallow one's pride and lay it on the line.

I do believe from what I have seen and heard with a few carriers that it's often the case of carriers expanding too quickly without a grasp of the ups and downs of this business. They make promises that they eventually cannot keep, due to the nature of the beast. They don't allow for that. Blinded by the dollar signs of multiple vans running across the country. No, this is going to open up another can of worms here...let's just leave it at this.

If you're going to cut a driver, if you're going to be late on your contracted payments, 'fess up.

But don't be surprised if more cuts and late payments start coming down the pike.

Just not a good time, economically, to massively expand.

 

[Jefferson3000]

Or.......they're tired of these contractors and don't want them calling in every three hours while sitting. I agree with Charles. Bring in Paul Harvey.

 

[Camper]

There are two sides to every story. Well, since we haven't heard the carrier's(in this case, JD Clark) account of the situation or from the carriers who were "relieved" from their contract, we don't have any side of the story.

All of the speculation on this thread is certainly plausible but again, without a first hand account which we may never get, it's just that, speculation.

Personally, it makes no sense to me why a carrier would just cancel a contract as opposed to keeping them on, perhaps with the stipulation they carry their own insurance. Keeping them on in this manner costs a carrier nothing. There's little reason for them to limit their capacity if doing so results in no material savings.

 

[Turtle]

Personally, it makes no sense to me why a carrier would just cancel a contract as opposed to keeping them on...

Lots of reasons. Late too many times, calling in a lot and complaining about various things, turning down too many loads, the list is endless. It's why we need Paul Harvey to fill us in. At times like these carriers often look to get rid of dead weight, for lack of a better term, knowing that people are standing in line to replace them. All kinds of reasons may be given, even though no reason at all is required.

 

[LisaLouHoo]

Or.......they're tired of these contractors and don't want them calling in every three hours while sitting. I agree with Charles. Bring in Paul Harvey.

Well, I know these particular contractors didn't call and kvetch. No need to, they also haul for multiples and know if the freight isn't there, there is nothing the carrier can do about that, so that was an unwarranted conclusion in this case.

I do know the type though. I think they shouldn't be expediting in the first place.

Seeing as how there hasn't been much action from JD on our front, perhaps going into the C/V realm just hasn't worked the way he thought it would.

Of course, if the reason for letting the drivers go is different than what they both independently stated (and they both gave the same reasons), then that's on JD.

There may be a different reason. It's up to JD to tell it honestly to the drivers if there is.

However, it wouldn't surprise me if the truth lies in finances...the economy including fuel costs, Japanese freight, flooding. All issues these carriers could not have possibly allowed for in total and overextended themselves before it all went to Hades in a handbasket. I suspect this with the number of overdue payments due drivers from more than just one carrier.

It may seem like it makes sense to keep a driver on tap "just in case"...it could also be the scenario of raising one's white flag and backing out of a non-profitable venture gracefully as possible. Maybe JD doesn't want to get behind in what drivers are due and rather than make up some story about his pen running out of ink and he couldn't get a new one because WalMart was closed for Rosh Hashana, he will just trim his force until things pick back up.

Of course, he could have said that, LOL
"Bruises fade and bones will mend-but a psyche can be ruined FOREVER" : LisaLouHoo, c. 2008

 

[Ragman]

Well, I know these particular contractors didn't call and kvetch. No need to, they also haul for multiples and know if the freight isn't there, there is nothing the carrier can do about that, so that was an unwarranted conclusion in this case.

I do know the type though. I think they shouldn't be expediting in the first place.

Seeing as how there hasn't been much action from JD on our front, perhaps going into the C/V realm just hasn't worked the way he thought it would.

Of course, if the reason for letting the drivers go is different than what they both independently stated (and they both gave the same reasons), then that's on JD.

There may be a different reason. It's up to JD to tell it honestly to the drivers if there is.

However, it wouldn't surprise me if the truth lies in finances...the economy including fuel costs, Japanese freight, flooding. All issues these carriers could not have possibly allowed for in total and overextended themselves before it all went to Hades in a handbasket. I suspect this with the number of overdue payments due drivers from more than just one carrier.

It may seem like it makes sense to keep a driver on tap "just in case"...it could also be the scenario of raising one's white flag and backing out of a non-profitable venture gracefully as possible. Maybe JD doesn't want to get behind in what drivers are due and rather than make up some story about his pen running out of ink and he couldn't get a new one because WalMart was closed for Rosh Hashana, he will just trim his force until things pick back up.

Of course, he could have said that, LOL
"Bruises fade and bones will mend-but a psyche can be ruined FOREVER" : LisaLouHoo, c. 2008

Kvetch and Rosh Hashana in the same post. Where is moose to translate?

 

[davekc]

Still sounds like a lot of speculation. Running for several carriers might be in play here? Again, total speculation.
Maybe J.D. will chime in. He stops in from time to time.

 

[Brisco]

So far, this whole thread is filled with 3rd hand, 4th hand, 5th hand innuendos.

Even the original poster started out with "he said -she said" information against an active member here.

I say get the 2 nay-sayers here and let them fill us in on what actually happened, and then get ahold of JD to answer their accusations.

Also, when more info comes forth, I really don't want to hear the whining that'll come forth after this thread gets locked and/or deleted, OK. So far, this thread has "POOFED AWAY" written all over it. Know what I mean.

 

[Moot]

Maybe J.D. will chime in. He stops in from time to time.

There is a much grater chance of J.D. chiming in than Paul Harvey. But if Paul Harvey did chime in, what a great "Rest Of The Story" that would be!

 

[davekc]

There is a much grater chance of J.D. chiming in than Paul Harvey. But if Paul Harvey did chime in, what a great "Rest Of The Story" that would be!

Might be on to something.

 

[Turtle]

I would be a little surprised if J.D. Clarke chooses to use this forum to publicly discuss anything about the situation unless the details are pretty generic.

 

[LisaLouHoo]

I would be a little surprised if J.D. Clarke chooses to use this forum to publicly discuss anything about the situation unless the details are pretty generic.

I didn't mean to infer JD should use the forum. The point is: if he is using excuses other than the truth, he should have been forthright with the drivers. If he is cutting for those reasons, then it may be a sign of the times and once again, I thought people would want to know. Something could be headed the expediting way. Might be time to consider secondary avenues of income. Such as investing in a mule breeding operation.

"Bruises fade and bones will mend-but a psyche can be ruined FOREVER" : LisaLouHoo, c. 2008