Rates are crashing and fuel to the moon!

Doubtful. This isn’t a move to put outside freight on their trucks. This is a move to be an uber, cloud truck, amazon. And eventually replace you guys.

 

Amazon started the same way. Had to have at least 4 power units, and multiple years of authority. Once they got past "Beta"...The rest is history.

 

No it's not a move to replace the private fleet. They're still growing that. It's grown by 2,000 drivers since I hired on they're at around 15,000 drivers now. They want 25,000. The private fleet is a service and cost savings advantage over competitors that will be in existence long after I'm dead and gone. That private fleet also helps to serve as a one of the checks on carriers that want to get a little too expensive on rates.

 

Yeah ok…. That kool aid must be refreshing

 

Think about it. It’s an effort to control their whole supply chain and make money off of transportation. By being their own broker they just slashed freight costs by at least 20%.

 

Them's facts. I've been driving 25 years and that whole time everyone always said they were getting rid of the fleet but it actually quadrupled in size. You can think what you want but they didn't become what they are without that fleet of trucks.

 

You are a net loss. They do not want trucks. They have to have trucks. The minute they can replace you with a lower cost outside carrier and still maintain some semblance of on time deliveries, you will be looking for employment. This is not a good thing for you. This is not a good thing for brokers. This is a good thing for low rent carriers.

Don’t be naive. This is going to hurt you.

 

You're wrong. Contract carriers can't meet the service levels Walmart wants. You do realize they have been getting rid of them at the DC's for a few years now? The one I'm at for 20 some years was always contract carriers, they got rid of the last one, Marten, almost 2 years ago. One day there was about 80 Marten trucks, the next day there was none. All Walmart trucks now, never any contract carriers. They don't want a semblance of on time deliveries. They want 100% on time all the time. They keep up with those numbers. They keep up with numbers on everything. Service failures mean lost profits. A semblance of service ain't gonna cut it.

 

And nobody ever thinks their spouse will cheat until they do. Lots of luck there. Maybe I’m wrong, maybe I’m not. But this announcement is like finding that suspicious number on a phone. It’s not good…

 

Correct me if I’m mistaken: Walmart buys and sells on price and price alone.
I’m not a walmart shopper. I never heard anyone that was brag on their service or quality.
Wasn’t the gripe about walmart for years that they had more employees on welfare and government assistance than ALL other companies in the country; and received the most of those vouchers back from shoppers as they are the cheap place that all the welfare people can shop?
I posed that as a question: but not because I am unsure of it’s accuracy…


If trucking can be bought cheaper and sold at a better margin- that is a legacy company branded upon that strategy.
I ain’t saying count your days/ but the writing on the wall looks pretty legible in my opinion.