a couple more questions on industry
#11
Member
Thread Starter
Join Date: Feb 2006
Posts: 92
Thanks again for the replies. GMAN, this is my situation, I've been driving local for 7 months, and am now almost a month OTR (yes LOADIT I'm with a trainer). I'm liking it even more than I thought. Of everything you mentioned, I will do good with the paperwork and managing money. As a matter of fact, I'd prefer to do all that stuff myself. I'm not a handy individual or gear head, which will be a downfall as I won't be working on trucks myself which I know can save money.
One more thing is I pick up things very fast. I never did logs before a couple of weeks ago, and I ended up explaining them to my trainer cause he had it all wrong. (Not to begrudge him, he's been pretty good to me. Also he's not stupid so I don't know how after 20 years driving he doesn't understand the logs. By the way GMAN, you ought to do consulting work. You really should be getting paid for the help you provide. Not to blow smoke up your butt or anything, but you must be a real nice person. Most people don't spend years in an industry and then spend the time helping people as you do for free. LOADIT, thanks for the advice. I actually have been keeping track of things as you suggested. Thanks also for your encouraging words. As for IDLEAIRE, I didn't like the internet too much, (by the way Cingular just rolled out new broadband wireless internet service which I bought and so far it's been pretty good) but IdleAire are definitely on to something. They have some stuff filed with the SEC, if they go public I will be looking into buying into it. One final thing, again excuse my ignorance, but why in this day and age aren't there direct shipper to trucker websites? I mean even in real estate they have discount brokers, not too mention things like Ameritrade where you don't have to pay a broker. Again please excuse my ignorance because maybe this already exists, but it seems like there ought to be a website where like ebay where truckers and shippers are rated. Why pay brokers such a big chunk of things?
#12
Senior Board Member
Join Date: Sep 2006
Posts: 725
There have been direct shipper to trucker websites directfreightconnect.com was one and it disappeared, clickloads.com is sort of one, loadsolutions.com is kind of one. The problem I see is shippers dont like posting loads, they like having their product picked up and delivered on time. Their outlook is another load of product sold. We as independents need to realize this is our business and service these shippers at a profitable rate without cutting the other guys throat just to get in the door. Produce truckers realize this, however, big reefer outfits come in and do it for cheap with a wheel holder and ruin it for the rest of us and sometimes damage the customers produce due to inexperience.
#13
Quito12, you are getting a good start. It is important to understand your strengths and weaknesses. I think most prefer the mechanical aspect to the paperwork. Even though you are not mechanical, you could change lights out. I always keep spares in my truck. A light may only cost a couple of dollars, but a truck stop will usually charge a minimum of 1/2 hour labor for any work they do. That will usually be at least $35 and keep you tied up for an hour or two, more if they are very busy. You can change them yourself in 5-10 minutes with a screwdriver. You not only save the labor but don't lose the time.
I appreciate your kind words about the consulting. I think it is important to pass along some of the things we have learned along the way to those coming along. However, if you hear of a good consulting job, I will be glad to take a look. :wink: There are a couple of websites that deal with shippers direct, on a limited basis. These are more on a bid basis. The reason many shippers deal with brokers is that they can get the job done for them without having to deal with 50 different trucking companies. Most shippers I talk with don't like dealing with brokers, but it is simply more convenient for them. Recently, I have had 2 different shippers to approach me directly to by pass the broker. I never solicited their business, but they asked me. From an ethics standpoint, it is something of a dilemma. These shippers feel that the brokers are taking advantage of them and they don't like it. Some load boards do allow for reporting problems with brokers. I believe they also allow for reporting carrier performance to brokers.
#14
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Thread Starter
Join Date: Feb 2006
Posts: 92
Thanks GMAN and LOADIT for your follow up responses. I actually went to the library and got a book on freight brokering which I guess will help me build a base of understanding rather than just simply asking questions here off the top of my head without any real understanding of what I'm asking about.
I do have a question LOADIT about your comment here: big reefer outfits come in and do it for cheap with a wheel holder and ruin it for the rest of us and sometimes damage the customers produce due to inexperience this makes sense as the big companies can afford to do this, but in orientation I was surprised when the instructor stated that they charge much more than owner operators. I was surprised and asked why would a shipper use them than to which he replied that they have been around for decades and companies know that they aren't going anywhere. That shippers aren't going to trust a load worth a half a million dollars to some guy with some truck. I say I was a bit surprised because due to economies of scale these big companies can I assume underprice the small guys. Or does this industry run off a different business model?
#15
Quito12, it might surprise you to know that there are a lot of these carriers who DON'T haul cheap freight. They just don't pass much of their line haul along to the owner operator. Don't get me wrong, there are those who will haul cheap freight, but they would not be able to stay in business hauling for fuel money. Several years ago, I remember seeing figures from one carrier for $2.08/mile. At the time they were paying their owner operators $0.82/mile. This particular carrier is a solid company and apparently has little problem finding drivers to fill the seats. This is not an isolated incident. There are other carriers doing the same thing. The advantage the larger carriers have is that they can get the job done. They have enough trucks and owner operators leased to them to see that the shipper has what they need. If they can't get a truck there, they will broker the load out.
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