I'll tell you Bigmon, the thing with this guy, and he is a very nice guy, is he really doesn't need to sell. He has a day job that pays $100,000 a year. His wife makes like $50,000 or so and they have no kids. So what he makes on trucking is gravy for him. He's not hungry as someone else might be.

For me I would quit that day job he has, fire the staff he has to hire to run the trucking company and then get to work. He has an easy job but it's still a job. I would be happy making $100,000 a year in a day job but only for so long. Money is not my main motivator. Personal achievement is what I'm looking for to put it in a concise way.

Of course honestly if I had a job that paid $100,000 a year I'd move into a shoebox and eat mac 'n cheese and deal with it for about 4 or 5 years and then with what I have saved I would find something to do

 

I was talking today with some guy today and I mentioned I drive a truck. He asked who I drove for and to make a long story short come to find out he has a cousin who works for CSX. He said his cousin said that they were killing the truckers as they can haul things for cheaper. Seems like with fuel prices and everything else there is a lot of pressure on this industry. So far the only thing I've heard on this board about the trains was from no_worries (hey no_worries where you been?) about the apples in Washington.

I'm wondering what the old timers here think about the trains and what types of shifts need to be made to work within this new environment.

I even read recently that I think it was Martin had an increase in profit due to their use of intermodal. These big companies can make that shift; where does that leave us?

Made a couple of more sales calls today. Actually both were to follow up on previous contacts. I see you have to be persistant with this thing and it's not just one call. Couldn't reach the appropriate people so will just call back.

Today I picked up a tire I had sent to get fixed a couple months ago. So now I will be carrying a spare but this spare is almost a new tire so I'm wondering if I should be carrying two tires as if I need to replace a tire that is worn then I will be putting on this new tire right next to a worn one. I know you are not supposed to do that, so then carry two tires as spares that have the same tread depth?

 

The interesting thing about rail is that it has been supported by trucking for decades. In recent years we have seen train loads of trailers being shipped across the country on rail cars. Trucking cannot compete with rail on price, but can on service. It can take 2 weeks or longer for a load to get across the U.S. by rail, but 3 1/2 days or less by truck. A good team can get a load all the way across the country in about 2 days or so. Rail cannot compete with that type of service. Rail can also haul a lot of bulk and more weight than trucks. Again, it cannot compete on service.

The same thing can be said of the large carriers. The large carriers can't compete on service with the small carriers. They can supply capacity, but cannot compete on service. I had an opportunity to talk with an individual with one of the top 10 carriers a few weeks ago. They are afraid that they cannot compete with the small carriers. That is why they are pushing the black boxes and speed limiters. It was an interesting conversation. He was concerned about competing on a "level playing field" with small carriers. One would have thought that the opposite would be true. One would think that the small carriers should be more fearful of competing with the large carriers.

Rail has limited capacity. The large carriers cannot respond to rapidly changing economic conditions, nor can they provide the same level of service as the small guy. Now, when you are talking about a company such as General Motors, that is a different situation. Most of the large carriers have brokerage departments to book excess loads. There is a good reason for that. They cannot handle the business that is currently there. They are going after the smaller carriers to run their freight. That should tell you something if you are a small carrier.

Stop trying to compete with the mega carriers. Not every shipper wants to do business with a J.B. Hunt or Swift. Some prefer doing business with smaller carriers who can provide more personalized service. The large carriers only handle a small percentage of the freight. Eighty percent of the freight in the U.S. is hauled by carriers with 20 or fewer trucks. You don't need to compete with the large carriers. Find a niche and you can do well. There is no need to worry about competition. It exists, but your primary concern should be to do the best job you can and earn a profit. Let the large carriers and soon to be broke owner operators carry the cheap freight.

 

Thanks GMAN for your insight. You know I picked up this book last year on freight brokering and I remember one of the statements right in the beginning was to stay away from the mega companies.

As for the level playing field, other than being on time which is a big thing of course I don't see how they aren't playing on a level playing field. I mean I wonder what Swfit pays for their trucks? I bought an ex Covenant truck for $63,000 and I wonder what they paid for it new?

Of course they must have massive back office expenses. I mean every single person sitting in those offices of the big companies are paid from the truck driver. We don't have those types of expenses. Maybe we are on a much more even playing field than I thought.

Hey GMAN if you don't mind me asking, you said recently that you once employed 91 people. I know you have been in trucking most of your life, did you at one time have a big fleet?

 

I've been having computer issues :roll: but got it all taken care of today. Truck went down last night 5 miles from the house, so I had to get it towed to the dealer where it now sits :roll: I'm liking this autoshift less and less all the time :evil:

As far as industry information goes, there has been a ton, and I do mean a TON, of info coming out over the past two weeks. The industry rags have some decent articles (pick up a copy of The Trucker and your issue of Landline) and there's been a bit coming out of the financial markets. I came across an interesting article on trucking and the rails a few days ago, but I can't remember where I saw it. I've been reading so many lately I can't keep them all straight. 3PL's have even been contributing to the subject. TIA is starting up an interesting program that all independents should familiarize themselves with.

 

Merrick, I recall hearing a few years ago a figure of around $80,000 for a new Freightliner to one of the large fleets. Some of them have interests in dealerships. I believe the people who own Covenant also own a couple of Freightliner dealerships. Whether true or not, when you buy several thousand trucks you can get some serious discounts. I believe these large carriers buy their trucks direct from the manufacturer but take delivery locally. The local dealer receives a prep or handling fee to coordinate things. That is the way some of the large companies who buy a lot of cars do. The major car manufacturers sell direct to the large volume buyers and the company takes delivery at a local dealer who receives a handling fee.

I have owned several other businesses over the years, along with trucking. The 91 people was in another field.

 

It's amazing GMAN how much money flows when you get up to that level. You know there is a lot of money down here in South Florida and sometimes it's amazing when you find out what some of these people do or who lives in that big house on the beach. My first local job out of school was hospital laundry servicing. I mean the place where they cleaned the sheets was just one building out of thousands down here but the owner had so much money it wasn't funny. He actually was there a lot too standing outside smoking.

As you can tell I ask a lot of questions. Sometimes some of these people just own companies of common things but reap a ton of money.

I remember in Texas one time at one of those Mop & Pop truckstops I saw an old man in one of those expensive Rv's from Florida so I got to talking to him He was the owner of a couple of Chevy dealers or some car dealer. There must be thousands of those dealers and he just owned a couple but he was a millionaire (I looked into him after). His name was Red something Doghouse might have heard of him as his dealerships were near where he is from I think. Salesman to the end too cause as we shook hands goodbye he told me to come see him when I need a new car (I never buy new).

The point of all of this besides I'm sitting at home waiting for my load to be ready (now they say 10pm) is that it seems once you get to a certain level then it doesn't seem too hard to make it (keeping it of course is another thing.) I mean we all are working trying to get ahead and a lot of times I think that it can't be so hard. I don't know just musing I guess.

Glad to hear you are ok no_worries. Thought you fell in back in the Chinese Buffett in Charlotte which was where you were heading last I heard. It does seem that when things go wrong they all go wrong at once.

There sure is a lot of ink being spilt on this industry. Massive in scale honestly. I have been reading Packer about the produce market and also Inbound Logistics which is free to get. I see why they say to find your niche because this industry is so wide you can never encompass it all. Information is definitely key, otherwise you are just another pawn on the board. Me I don't want to be a pawn. Not saying I have to be a king or a Queen either but a Rook wouldn't be so bad.

By the way, I was listening to the Democratic debate today and one of them said that 80% of our food is imported. I found that hard to believe as from the little I have seen in the short time I have been doing this is that there is a lot of food produced within this country. I don't think I heard him wrong either.

 

Just a quick question on competing with CSX. I live along the CSX line through Daytona and very rarley see a reefer on board. usually see auto's,intermodals, containers and van trailers. Am I missing the 2am express loaded down with all frozen food to Miami or something? Because I honestly can't recall a bunch of refridgerated freight on csx cars going north or south. :?:

 

I'd be surprised to hear a candidate misquote a statistic in a debate...especially a poignant one :shock: :lol:

Didn't fall in, but I did hit that buffet again Tried to go twice but the gf wouldn't have it. Luckily the hotel had an exercise room 8)

What are you getting out of FL? I tell ya, CA is looking more and more like FL the past week or so :cry: I must have gotten the last good load out when I went to FL.

 

Some of the world's greatest fortunes have been built with a very simple idea. Some people think out of the box and put action to their ideas. Many overcame insurmountable obstacles to attain success. With great success comes great sacrifice. I have yet to meet anyone who has attained a high level of success who hasn't paid a price for their achievement. I am not talking about their descendants, but the one who made the family fortune.