What are you going to do ?

zorry

Veteran Expediter
Jan 1 is fast approaching.
Another Fedex driver recently listed his 2006 truck for sale on EO. The last time I spoke to him he planned on retiring. He lives in California.

Another friend in Ca is looking at a retrofit.

I'm pretty sure two others I know have decided one will retrofit and another will just stay out of Ca.

I'm curious what most people that lose Ca on Jan 1st are planning to do.

Retrofit, buy newer truck, get out, or stay out of Ca ?

How many expediters will we lose ?

Time is running out.
 

ATeam

Senior Member
Retired Expediter
You already know that Diane and I are getting out of the business, partly because our 2006 truck will become illegal to drive in California at the end of this year; because CARB regs were retroactively applied.

It would take $40,000 to replace our reefer and retrofit our truck engine. But what do we get for spending that money? We get nothing more than the ability to maintain the status quo. California rates have not increased to offset the retrofit cost (or the additional cost that is built into new trucks too). In short, our operating expenses would increase by $40,000 and our revenue would increase by zero.

Loathe to take $40,000 of after-tax money out of our savings account and spend it to maintain the status quo, we started looking at ways that same money could be better invested, and we found it in a new business opportunity. So, we are in the process of opening that new business and we will sell our truck when the new business is up and running.

That's one expediter team lost to the industry and one perfectly good reefer truck lost to California because of the CARB regulations retroactively applied. By retroactively applied, I mean that the truck was legal in California when purchased in 2006. Instead of honoring the regs that were in place at the time and allowing our truck to run through its useful life, new regs were applied that make the truck illegal in California at the end of this year.
 
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layoutshooter

Veteran Expediter
Retired Expediter
NO California. We are researching other options. Costs are going up and rates are going down. Soon it will no longer be profitable to continue in this business. At least not how we are doing it right now. Too many silly regulations are adding to the mix that make this business less attractive with each passing day.

We HAD planned on staying in this for another 5-10 years, now we are looking at a 3 year maximum. Unless we are forced out sooner.
 

coalminer

Veteran Expediter
Retired Expediter
Jan 1 is fast approaching.
Another Fedex driver recently listed his 2006 truck for sale on EO. The last time I spoke to him he planned on retiring. He lives in California.

Another friend in Ca is looking at a retrofit.

I'm pretty sure two others I know have decided one will retrofit and another will just stay out of Ca.

I'm curious what most people that lose Ca on Jan 1st are planning to do.

Retrofit, buy newer truck, get out, or stay out of Ca ?

How many expediters will we lose ?

Time is running out.

I take it you all run trucks that are over 26k?

If you are under 26k, you still have time for CA, as a 05/06 truck would good until January 1st 2021
 

jjoerger

Veteran Expediter
Owner/Operator
US Army
I plan to boycott CA and any products that come from that state. I hope anyone who can and does go into CA sticks it to them on rates.
 

zorry

Veteran Expediter
jjoerger; I hope anyone who can and does go into CA sticks it to them on rates.[/QUOTE said:
Actually , not stick it to them.

Get a good ROI.

These new trucks aren't cheap.
 

paullud

Veteran Expediter
Did OOIDA or anyone else sue over the laws being applied retroactively?

Sent from my SCH-I535 using EO Forums mobile app
 

zorry

Veteran Expediter
Actually, the carrier wins.
If rates go up, their piece of the pie gets bigger and we've shouldered ALL the expense.

Kinda makes you think compliant trucks should get a larger %.
If rates don't go up compliant trucks NEED a larger %.

Just thinking out loud.....
 

davekc

Senior Moderator
Staff member
Fleet Owner
It will be interesting to see if they actually enforce it. But we will want more money to go in there with compliant trucks. Carriers will have to pay it as the supply will fall off unless they go to the truckload carriers with newer trucks.
As for expedite, it will likely be the better carriers offering this service. The "bottom feeder" companies won't have operators in their fleets to afford the equipment.
 
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layoutshooter

Veteran Expediter
Retired Expediter
It will be interesting to see if they actually enforce it. But we will want more money to go in there with compliant trucks. Carriers will have to pay it as the supply will fall off unless they go to the truckload carriers with newer trucks.
As for expedite, it will likely be the better carriers offering this service. The "bottom feeder" companies won't have operators in their fleets to afford the equipment.

We may WANT more money, BUT, we are NOT SEEING more money. Rates continue to drop on those high value, temp control, loads. Hard to justify a truck that costs upwards near a quarter of a million dollars in an atmosphere of over regulation and declining returns.
 

zorry

Veteran Expediter
I believe Fedex is self enforcing.

If you're not compliant, you're flagged NO CALIFORNIA.
That's what I heard.
 

layoutshooter

Veteran Expediter
Retired Expediter
I believe Fedex is self enforcing.

If you're not compliant, you're flagged NO CALIFORNIA.
That's what I heard.


ONLY when they bother to look at who is, or is not, compliant. We are flagged 'not compliant' but get one or two load offers for California each month. They do, of course, count against us as "turn downs".
 

zorry

Veteran Expediter
Take them.
When you get to Arizona say "Hey, guess what I just remembered".....LOL

They'll start paying attention fast.
 

layoutshooter

Veteran Expediter
Retired Expediter
Take them.
When you get to Arizona say "Hey, guess what I just remembered".....LOL

They'll start paying attention fast.

No, I can't do that. As fun as it may be to do so I am just too responsible. :( Besides, then I would be stuck in Arizona, covered in sand, hot and stinky. Just not worth it. :cool:
 

zorry

Veteran Expediter
Joe, the way they do math in Green you're probably at about 120% turndown rate, anyway.
 

WanderngFool

Active Expediter
It will be interesting to see if they actually enforce it.

I remember reading somewhere that they enforce carb regs a lot more stringently on trucks registered in CA as compared to trucks registered elsewhere. True?

(never even been to CA so I'm a total newb on the subject just trying to learn sumthin'.)
 
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